Is the Cloud a Natural Extension of Managed Services

Cloud computing is different than many other technology discussions these days, not due to its complexity, but because it touches every vertical, technology and potentially every end-user. It‘s more than a delivery system, transforming the way we use and deploy technology. 

Thus, the discussions around cloud computing and SaaS tend to be very broad and confusing at times. Almost all solution providers are invested in its development and use it to some degree, which explains the variety of questions posed to the industry experts panel at CompTIA AMM.

 The group included John Tippett, managing partner at Augusta Information Technologies LLC; Michael Proper, CEO of ClearCenter; and John Rice, VP of channels at Zlago. With several years of experience developing and selling cloud computing/SaaS services, each had their own perspective and provided detailed suggestions to the audience.

How can the cloud impact a solution provider’s business? Tippett suggests that “Providers have a significant opportunity to help their clients on the backend of the cloud. The MSP value is still there with these services, supporting the applications, set up and network, in addition to the other infrastructure.

Solution providers shouldn’t get stuck in the terminology, but focus on the business issue. “We don’t pitch ‘the cloud’ to our customers…we understand their issues and help them manage the backend. As an MSP, we get credit for bringing them the solution, which also includes the cloud,” stresses Tippett.  

Another important point for solutions providers is not to fear the change. According to Rice, “the cloud is a natural extension of being a managed service provider,” as almost every managed service has a platform that goes with it. “You’re the person who can aggregate all the cloud offerings, and provide them one bill for all the services. There can be fees for different levels of service, to connect and manage it all.”

The Sales Challenges

Now that the cloud is here for almost any service you want to provide, the hard part is actually selling it. Without the larger upfront fees of a traditional software implementation, the recurring model requires a larger than ever focus on sales.

“Dedicate one person to be your cloud lead, to blaze a trail for your company and use their experiences to learn from and improve the process,” says Rice. Solution providers also need to continue developing their consultative practice, with a greater focus on understanding the client’s business issues more than the technology.

On the other side, clearing the confusion with customers is key in the beginning. “Your sales people have to call out the (meaning of) cloud and address it upfront with customers, educating end users on the pros and cons in order to eliminate the mystery,” says Proper.

After the initial discussion, the topic needs to change. “Don’t focus your talk on the cloud, but on the business solution you’ll provide them on a monthly basis. Walk in and solve their business pain point without making it a product or service sale,” says Tippett.

Cloud Benefits

Cloud allows you to create your own solutions efficiently, by white labeling vendor platforms, linking and integrating them, and layering in your own value solutions/services. According to Dan Wensley, VP of channel for Level Platforms, “The concerns and situation is almost the same as the managed services conversation from five years ago. Our partners with cloud business plans in place are seeing their cost of service delivery going down, revenue going up, and their total profitability on the rise.”   

MSPs and VARs have a responsibility to make sure all these diverse technologies work well together, and that’s the real value add and revenue opportunity. In the same respect, the panelists recommended selecting vendors that don’t interfere with your client relationships. Manage your own customers, rather than allowing the vendor to control the billing and other contact points whenever possible. Your clients depend on you, and that gateway ensures you can provide the support and service they need to accomplish their business goals.