Verizon’s Computing as a Service for SMBs: No Partners Needed?
When Verizon launched its Computing as a Service (CaaS) SMB strategy today, I was curious to know if the big service provider plans to work with smaller channel partners. No doubt, Verizon’s cloud leverages partnerships with VMware and Terremark. But what’s the message to smaller MSPs? Perhaps the answer is for MSPs to dial Rackspace, The Planet or another channel-friendly cloud partner. Here’s why.
No doubt, Verizon’s CaaS SMB services will attract some small and midsize business customers. The CaaS SMB system offers virtual servers, storage, networking and other services to SMB customers.
A Matter of Trust
But here’s the twist: Within our own small business, I’m responsible for how our Web site infrastructure evolves and grows. Instead of choosing hosting partners and cloud partners on my own, I depend on our Web integrator for regular advice on all IT matters.
And generally speaking, it doesn’t sound like Verizon CaaS SMB is doing much to win the hearts and minds of Web integrators, VARs and MSPs — the hosting industry’s key influencers. Instead, Verizon seems to be pursuing a direct sales model in to the SMB space.
Reality Check
That may work for some companies. But I suspect most of MSPmentor’s readers are looking to partner up with hosting companies and cloud providers that have partner programs.
Rackspace, for one, has recruited channel veterans from AMD and Extreme Networks to build out its partner program. The result: Rackspace’s cloud seems to be gaining critical mass among the readers I hear from Similarly, The Planet continues to enhance its channel partner programs even as the big hosting provider merges with SoftLayer.
It looks like VMware and Terremark will potentially profit from Verizon’s SMB cloud efforts. Now, it’s time for Verizon to open its doors a little wider to the broader IT channel.
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Verizon has a fairly fatty overhead so I can’t see them splitting revenues with the channel. Like Dell before them after swallowing Silverback, I think most of the Silverback partners quickly discovered that the big boy has a bigger appetite than they do, and definitely more money and lawyers, and quickly rationalized the value, little to none, that the channel could add to their bottom line. I think this is an important selling advantage for any MSP platform provider: work cooperatively with the channel rather than cannibalize their customer base.
Dell is an interesting example. I hear from numerous Dell partners that have strong relations with Dell’s server and storage teams. But I don’t hear from many Dell partners these days that are working with Dell Managed Services.
-jp
I’d heard from a former Silverback/Dell partner, in that order, that Dell was pushing hardware hard into the service accounts and was muscling the partners aside and out, taking the bulk of the recurring service revenue and leaving them with the smallish fix-it remediation. This may have been a contributing factor to his ultimately getting out of the business.
Scott: I know there are some disgruntled partners out there. But there are pros and cons to every partner program. I try not to base our coverage on one upset partner. But if we see/hear a trend we definitely cover it. Let me know if your sources ever want to go on record with me. Thanks.
-jp