Series Introduction: Seven Megatrends that will Reshape Managed Services in 2010

February 10, 2010 5:15 AM

Powerful market forces are now at work that will reshape the market for managed services in 2010 and beyond.   In a series of weekly blogs I plan to comment on seven of the most important of these megatrends and hopefully generate some much needed discussion. 

In the series I will identify what I see as the threats and opportunities for everyone in the SMB IT channel.  The impacted include vendors, distributors, solution providers, current and future MSPs, and of course the 30 million or so SMBs around the world that will be the ultimate beneficiaries of remote management as the market matures. 

1. Large corporations enter the market.   With a few exceptions including Dell, Ingram Micro and Acer, the large corporations have played a minor role in the development delivery of managed services.  Distributors, vendors, telcos, IT retail chains and others will recognize that remote monitoring and management not only represents a great new opportunity but fundamentally changes the economics of their core business.
2. SaaS and cloud computing change the game.  Led by Google, Microsoft and others, alternatives to traditional client server computing will begin to consume SMB mind share and IT budget.  The majority of MSPs that serve the SMB market will define a core strategy for SaaS and Cloud, and begin to execute.  Vendor strategies face a major overhaul to embrace the MSP channel.
3. Unified Communications moves from buzz to reality.  Led by Cisco’s big push into the SMB market networking vendors will create significant alternatives and opportunities for MSPs as part of the transition from client server computing to network based models.
4. Collaboration becomes a core success strategy.  Increasing complexity and diversity of technology, competitive cost pressures and the growing sophistication of managed services delivery models will drive MSPs to supplement their core capabilities with a rich mix of services beyond the traditional local professional services delivered today.
5. System Integrators and offshore Remote Infrastructure Management (RIM) providers will enter the market.  Organizations servicing the enterprise will leverage RMM technologies to offer both indirect and direct to customer models as they move down market.
6. Vertical market service providers gain market share.  MSPs will accelerate their shift from horizontal to vertical markets a core strategy to differentiate against rapidly commoditizing basic infrastructure management services as well as leveraging market knowledge geographically.
7. Managed services growth goes international.  USA, Canada, Australia and the UK have been the four strong markets for managed services over the past 3 years with growing interest in northern Europe and South Africa.  Order of magnitude cost savings and the transferability of proven business models, will bring remote monitoring and management to every country with high speed Internet availability.

Next week I will dig into Megatrend #1 – Large Corporations Enter the Market, and share some thoughts on why this is inevitable and how this will change the current market dynamics.

Peter

Categories: Managed Services

Comments

Ken Thoreson

Peter:

I think your top 7 are right there, in focus and should be a top priority for the partner community. If you business can be impacted by any of these 7 trends, you best pay attention.

Peter,

As I noticed the first time I met you, you are one of the big thinkers in the Channel. Great post. I look forward to reading your in depth analysis on each of these trends.

Thanks!

Aaron

Hi Peter,

Love the post, the list and the idea behind it. My only question would be around #4 - collaboration. We've been hearing about this for 15+ years, and I'm really interested in hearing how you think we MSPs can faciliate this in our clients' environments. There seems to be a value sell that is hard, and seems like it'd be even harder from an MSP into a client than from inside a company's IT department.

Patrick

Aaron, Big thinker is one thing but right thinker is another. At least this gives me lots of room for future blogs! I promise to give equal time when evidence sugests I was wrong.

In the Large Companies entry I mentioned some unique deals we were involved in. One I am hoping we will make public in the next 30 days or so you will really like as it comes from an idea we discussed a few years ago that I think you will see is now ready for prime time. Call me directly for a heads up if you like.

Peter

Patrick, I've got a couple of weeks to get to collaboration, but it is my favorite. I think that collaboration has never really happened in the past beyond services like OnForce is that there has never been the need, nor have there been effective mechanisms to support the required processes and accountability. I think this is about to change dramatically to the point that the idea of local MSPs acting as very small local all purpose IT irganzations will become unsustainable. If I am even partly right this has many implications. I look forward to sharing my views on this and debating the assumptions and conclusions with you.

Peter

Peter