With adoption of IT as a service on the rise, it’s time to plan for the cloud computing inevitability

February 1st, 2010 by Heather Clancy

CompTIA, the well-known IT channel industry association, released some research a few weeks ago that points to a strong upswing in adoption of managed services and software as a service during 2010.

Their survey of more than 400 U.S.-based SMBs finds that close to 30 percent plan to start using software as a service (SaaS) in an attempt to reduce costs; that’s up from 22 percent one year ago. Moreover, about the same number expect to flip the switch on managed services in 2010. Here’s some insight from Tim Herbert, who is CompTIA’s vice president of research:

“Technology providers may be well advised to approach SMBs with either new IT solutions that represent low perceived risk or replacement solutions that positively impact productivity and efficiency. There’s also an opportunity to provide ongoing maintenance services to help SMBs better manage their IT systems under current business conditions.”

So what does this have to do with the cloud? In a word, everything.

In the rush to come up with a sexy term for every new IT movement, those that evangelize cloud computing are, quite simply, advocating the push to more efficient IT infrastructure. SaaS and managed services are, if you will, part of the cloud evolution and they are laying the groundwork for broader adoption of IT as a service.

According to research firm IDC, worldwide IT spending on cloud services will triple over the next two years to reach $42 billion worldwide by 2012.  More than 50 percent of the organizations that plan to embrace cloud infrastructure or application options are looking to cut costs, according to the IDC data.

Businesses are interested in “the cloud” for three big reasons:

  1. They can get new applications up and running more quickly (at least in theory).
  2. They can let their IT staff worry about more strategic concerns, such as customer service applications instead of e-mail administration.
  3. They can switch some IT expenses from capital expenditures into ongoing operational expenses, charged on a recurring basis.

Most of the time, when someone uses the term “cloud computing,” they are referring to the idea of using infrastructure hosted externally by a large service provider, such as Amazon.com or Savvis or Salesforce.com. But it’s important the cloud computing concept—and all virtualization skills and management services it requires—will also apply to internal data centers, where it will allow businesses more flexibility about applications and services they can deploy inside their firewall.

So, what does the push to the cloud mean for the high-tech channel?

  1. The chances a midsize or larger enterprise will host ALL applications or infrastructure in the cloud are slim. E-mail and databases are the first things likely to shift in that direction. That means oodles of opportunity for VARs and IT solution providers with application integration skills. Knowledge of security, compliance and identity management will also be critical.
  2. Larger service providers cannot touch every customer prospect, so they will seek technology experts who can represent and recommend the advantages of their particular infrastructures.
  3. IT solution providers will need to adjust their operational models to accommodate a very different payment and revenue stream than in the past.
  4. At a minimum, IT solution providers must be familiar with which cloud computing options are at their disposal, so they can discuss both pros and cons with their prospects.

We suggest all elements of the high-tech channel spend time putting some substance about what the cloud will mean for their business a year from now – and three years from now.

  1. Perform a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to unearth investment requirements and sales potential for a cloud practice
  2. Understand whether you should build your own cloud infrastructure or recommend someone else’s
  3. Define acceptable service levels and procedures for evaluating the technical and business merits of emerging cloud infrastructure options
  4. Develop a unique service and solution proposition that builds upon your existing sales efforts and that recognizes potential areas of conflict
  5. Engage all members of your channel in the cloud dialogue for feedback

HP, Synnex join CompTIA board

January 22nd, 2010 by Heather Clancy

Executives for Hewlett-Packard and Synnex were just added to the CompTIA board of directors for 2010. The two new individuals are:

Mike Parrotino, vice president of Personal Systems Group Sales and Management, Solution Providers Organization, Americas, for Hewlett-Packard

Bob Stegner, senior vice president of marketing, North America, for Synnex

The incumbent members include:

Mariano Dy-Liacco, director of client solutions for Insight Enterprises
Bob Godgart, founder and CEO of Autotask
Lester Keizer, CEO of Connecting Point Technology Center
Charles Lennon, president of TeamLogic IT
Kerry McDonough, director of Cisco Small Business Sales, Cisco Systems
Mike Menegay, CEO and president, Mobile Armor
John Noha, channel director, West, for McAfee
Dennis Obial, president and CEO, Government Acquisitions
Dan Shapero, senior vice president for Kaseya
Annette Taber, vice president of business development for Network Dynamics
Vijay Thadani, CEO, NIIT
Oli Thordarson, CEO, Alvaka Networks.

Catch me on video in two upcoming MSPtv Webcasts

January 21st, 2010 by Heather Clancy

Looks like I have to break out the work wardrobe again. I’ve been asked to participate in two upcoming Webcasts, being run on MSPtv and hosted by both Vertical Systems Reseller and MSPtv’s “Around the Channel” program.

My first appearance is on Vertical Systems Reseller’s VSR Channel Live program, with their editor, Regina Ciardello. Regina and I chatted about healthcare IT trends for the new year, including what the electronic medical records movement could mean for IT solution providers. Be sure to register at the Channel Live link above, to see me either as it airs on Friday, Jan. 22, at 1 p.m. EASTERN or in the archived edition.

I was also thrilled to be asked to be a guest on “Around the Channel,” which is a program on MSPtv. I’ll be speaking on the topic of “Managing Virtualization,” which becomes an even more complex problem as organizations take on more virtual servers, storage and desktops. I’ll be chatting about why virtual server sprawl could be an even bigger challenge than physical server sprawl and what tools are at the IT solution provider’s disposal to make sense of the mess. The segment will air on Wednesday, Feb. 17, at 12:30 p.m. EASTERN. Here’s a link for registering for my live appearance.

10 predictions for 2010

January 18th, 2010 by Heather Clancy

This year, I reported my predictions for IT services trends, rather than take a stab in the dark. Actually, I usually DO report most of my blogs. In any case, I contributed a story to Tech Target early this month, outlining 10 trends for 2010. This will also be the basis of a presentation that I’m giving early next month in Tampa for the service group within CompTIA.

Anyway, here are the things that I believe will be top of mind, based on my reporting in late November and December 2009:

  1. Businesses will finally be ready to spend on client technology because they can’t delay some of their upgrades any longer. This will be great for desktop virtualization and thin clients, which inspire debates about the value of desktops and notebooks.
  2. Disaster recovery will actually start to building a following among smaller businesses, because server virtualization sets the stage for solutions that aren’t tied to any particular hardware.
  3. Windows 7 will get solution providers in the door.
  4. Businesses will continue to invest in videoconferencing.
  5. Security and compliance concerns will motivate document management technology sales.
  6. Cloud computing won’t drive a lot of sales, but it will drive a lot of sales dialogues.
  7. Identity management will finally get some legitimate attention (because cloud computing makes it much more palatable and logical).
  8. WiMax and other broadband wireless options for connectivity will become viable, if expensive, options.
  9. The green IT mantra will be revived, not reviled.
  10. Server virtualization will get even more mainstream.

What’s your biggest prediction for 2010? Talk to me — but only if you’re prepared to have me write about what you say. Kidding… Seriously, let’s talk. Ping me at heather@heatherclancy. And be sure to add me to your Twitter feed. I’m @HeathClancy.

Microsoft changes how it measures customers’ satisfaction with partners

December 18th, 2009 by Heather Clancy

BLOG UPDATED 7:44 P.M. EST (DEC. 18) TO REFLECT REQUESTED CLARIFICATIONS BY MICROSOFT

Just spoke with Julie Bennani, general manager of the Microsoft Partner Network, for the company’s Worldwide Partner Group about changes the developer is making to its customer satisfaction research process and how it relates to attaining a Gold partner designation.

For starters, customer satisfaction surveys are now a mandatory part of becoming a Microsoft Gold partner.

The changes are part of the company’s evolution of the current program into the Microsoft Partner Network.

Surveys can be sent under a number of different auspices. For example, they could be sent out jointly (identified as a project being conducted by Microsoft AND Specific Partner) or they could be sent out just branded with the Specific Partner’s name. A third-party research company will monitor which businesses and organizations are being surveyed on behalf of partners, so that they don’t get survey-weary.

Another change is that surveys are more random in the past. There is no “minimum” level of satisfaction that is required in terms of customer satisfaction ONLY that the partner complete 10 surveys for EACH area where they hold to receive a Microsoft Gold designation. So, they need 10 surveys for Security, 10 surveys for Unified Communications and so on. A particular business could be surveyed about more than one different area.

Bennani says the idea behind keeping the surveys more random is that the partner and Microsoft will receive a truer reading of customer satisfaction across a given partner’s customer base. When a partner is responsible for meeting a certain customer satisfaction level, they might be tempted to game the results a little bit by providing the research firm with a list of their “best” customers. Now, the only real requirement is that the customers are ACTIVE: That they have worked with the Microsoft partner in the 12 months prior to a given survey date.

Partners that submit to this process will receive their scores, specific comments and an analysis of how they perform against similar partners. They can also add their own custom questions. What’s more, if they are really ambitious, partners can actually run surveys on a quarterly basis to keep better tabs on how they are doing.

On the face of it, I like the idea of making customer satisfaction process part of how high a tier a partner can attain in a vendor’s channel program. Although I personally think more attention should be paid to how a partner actually does, I guess that will sort of take care of itself. I mean, how willing would YOU be to fill out a survey if someone had done a really bad job. Maybe there become degrees of Gold-ness, with Gold partners holding a higher customer satisfaction score entitled to more field benefits or more attention from partner account managers.

I also like the fact that satisfaction is being more ingrained into the partner consciousness AND that the survey process forces ongoing activity. Satisfaction is more likely to reflect a long-term relationship, rather than a one-off tactical success story.

Now that customer satisfaction surveys as a partner measurement tool have been in place for roughly seven or eight years now across the channel (not just at Microsoft), I’m betting we’ll see some more adjustments in the year to come from other vendors.

Looking for a distribution boost? Try your hand at this CES contest

December 15th, 2009 by Heather Clancy

Chances are, at least some of the people who read this blog work for what could be classified as “emerging” technology vendors. If so AND you are going to the 2010 Consumer Electronics Show in January, you could be eligible for their contest to locate “the most innovative technology product for 2010.”

The Global CES Innovative Technology Contest is being sponsored by Global Marketing Partners, which is essentially what you would call a channel matchmaker: It helps new vendors find the appropriate distribution partners for their products AND it helps VARs and solution providers find new products that might fit their solution portfolios. The prize is $20,000-worth of channel marketing to support your channel launch AND guaranteed distribution placement.

Entries for the contest are being accepted up until Dec. 28, 2009. The company plans to feature the 10 finalists during CES on Tuesday, Jan. 5, 2010, at the Startup Debut event. Here’s the link to the contest application. And here’s the link to information about Startup Debut.

Good luck!

CDW research: Cost management concerns will prevail in 2010 IT spending

December 10th, 2009 by Heather Clancy

Few resellers have the marketing funds to support ongoing customer research, but CDW more than makes up for this with hits regular bi-monthly and annual polls of IT decision makers.

The third year-in-review edition of the CDW IT Monitor shows that budgets are likely to start flowing again in 2010 — but mainly on technology projects that help the entire organization get a better handle on costs. In fact, the CDW research shows that roughly one-half of the survey respondents are focusing on cost management as their company’s top business priority, with improving customer satisfaction next, followed by increasing market share.

The survey included 1,043 IT decision makers who were interview between Sept. 15, 2009, and Sept. 23, 2009.

As far as top IT priorities, here’s the breakdown in descending order:

  • Information security (44 percent)
  • Energy efficient/”green” IT (29 percent)
  • Mobility/mobile devices (29 percent)
  • Virtualization (25 percent)
  • Remote conferencing (21 percent)
  • Social media applications (14 percent)
  • Cloud computing (14 percent)
  • Web 2.0 (12 percent)

How many of your channel partners think to do credit checks?

December 7th, 2009 by Heather Clancy

Been doing some year-end interviews with channel executives that I know, to get a sense of the trends that I should be covering or at least watching in 2010. Had a particularly enlightening conversation with Janet Schijns, vice president of global channel programs for the Motorola enterprise mobility solutions group.

My discussion with Janet reminded me again of the serious potential for disconnect between the people running channel programs at massive high-tech companies and the people running day-to-day operations at those companies’ channel partners. This disconnect is nothing intentional, mind you, it just happens.

This one is a biggie, though. Janet, who used to run a small channel consultancy before joining Motorola, realized that many (almost all in fact) of Motorola’s business partners were NOT performing simple credit checks on potential account prospects before launching into full-blown sales campaigns.

Sounds really basic, huh, especially as many SMB VARs grapple with ballooning accounts receivable? But the fact is, many partners get so excited about the potential within a particular account that they often fail to overlook the true potential of that account to pay their bills on time.

So, if you want to add value to your channel program heading into the New Year, make it easier for your partners — of all shapes and sizes — to figure out if a customer prospective has the money to back up their technology buying intentions.

2010 Prediction No. 2: Client hardware will become interesting again

December 4th, 2009 by Heather Clancy

Quietly, perhaps TOO quietly, Taiwanese hardware maker Acer claimed the No. 2 position in the worldwide PC market this week — at least for the third quarter and at least according to research firm iSuppli. Actually, there was earlier news to this effect in October, but this is another validation.

There is one fundamental factor for Acer’s rise, which bears close attention as the economy attempts to pick itself up out of this wretched recession: its success with netbooks.

Even if you have absolutely no interest in buying a netbook for yourself, this form factor is really interesting for two reasons:

  1. They allow people who never before could have had their OWN notebook or PC to have access to computing power. Just last night, I was over at a friend’s house. They already own two PCs and are thinking about a netbook for under the Christmas tree so that all three of their kids can be working/playing at once. When I think about the possibilities for education, I get really choked up. And this is just the U.S. market: imagine where these things are having an impact globally.
  2. Netbooks and thin clients in general are starting to get the attention of IT solution providers who have long been out of the client hardware business. I had lunch with a serious server VAR in New Jersey just before Thanksgiving. He now views thin clients as a very logical extension to his existing integration business, whereas just a year ago, this wouldn’t have really been a consideration.
I’m reporting a story right now based on the channel proposition for netbooks, based in part on a conversation I had recently with Intel’s worldwide channel chief Steve Dallman. He observes that sales of “white” netbooks have built way faster than those of whitebook (bigger form factor mobile devices).
Watch for my story, and if you’ve got any insight to contribute, ping me.

Year-ahead Prediction 1: Managed print will be bigger in 2010

November 20th, 2009 by Heather Clancy

I’ve been hearing about managed print services since before I left my post at CRN back in the middle of 2007, but I think the next 12 months will bring a breakthrough for this sector of the IT infrastructure.

Since I like to look ahead of me rather than behind me (the view is better), I thought I would update this blog from now until the end of the year with observations about things that are likely to dominate dialogues during the next 12 months. I have no particular order for these random bursts of opinion, other than the fact that it may have risen to the top of my notes and (therefore) my writing list.

First up is managed print services (MPS), not to be confused with managed service providers (MSPs).

I know many journalists like to make fun of the printer market, because for the longest time it was so decidely unsexy. But this is one of those topics that will seduce everyone next year.

The fact is, printers are sort of like the last mile in your IT infrastructure. IT departments and managers have been focused on driving costs out of their data centers or their desktop maintenance line items. But printers have kind of escaped this same scrutiny, partly because the procurement of them has been so decentralized in the past. Admit it, it’s a status symbol to have your OWN printer snugged away in your office.

Actually, not anymore.

What with the corporate sustainability movement and widespread corporate cost-cutting, printer contracts and all the related workflow applications associated with them — think archiving, collaboration applications, enterprise content management — these is an area RIPE for services.

If you’re in the printer business, you already know this of course. But if you are not, maybe it’s time to start considering how your own product might fit into the managed print mix. Or, whether or not there’s a managed service opportunity that could be built around your technology.

Here’s more information on managed print services strategy from an article I posted on TechTarget’s ChannelMarker blog.