Where do SPs fit into this picture of offering Managed Services (MS)?
Most partners started out by offering hardware and then started offering
service over time. Initially, 30% of their margins came from hardware, which has
come down to around 3%. So they started looking at services to bring in the
How did MS evolve from this break-fix model?
After observing this break-fix model, many companies thought there should be
a proactive approach where there is constant monitoring of the equipment. Some
Fortune 500 companies could afford to invest into real-time monitoring of their
equipment to ensure instantaneous intervention, just like NASA does. But for
smaller organizations this in-house monitoring is an expensive proposition.
So how would you define MS from the solution providers perspective?
MS providers deliver IT infrastructure managed services to businesses over a
network on a subscription basis. Here, the billing occurs on recurring basis and
is based on the number of end points serviced and not by number of resources
deployed. The SLAs ensure service commitment and quality of service, which is
offered automatically, systematically, logically, remotely and securely. There
are three forms of MS deliveryon-site, off-site, and both.
But why should partners choose Kaseya?
Kaseya has been in the business of transforming SP from the break-fix model to
MS for the past few years and we are market leaders globally. We have been
highly successful in transforming 4 mn end-points through 4,000 service
What other benefits can SPs derive by offering MS?
The problem with the break-fix model is that there is no predictable revenue
over a period. As against this, there is significant increase in margins because
the managed service business model is scalable and predictable. Currently, SPs
are considered as vendors by customers. By offering MS they will become a value
added partner to customer, which takes the relationship on a different footing.
Vinita Bhatia/DQ Channles