Welcome!

Containers Expo Blog Authors: Elizabeth White, Liz McMillan, Mehdi Daoudi, Astadia CloudGPS, Pat Romanski

Related Topics: IBM Cloud, Microservices Expo, Containers Expo Blog, @CloudExpo

IBM Cloud: Blog Post

Technology Drivers Disrupting the MSP Market | @CloudExpo #Cloud #ITaaS #Azure

Fireside chat with Paul Guerin, Vice President at Nerdio

Paul Guerin is a serial entrepreneur who has over 25 years of high-tech experience and channel sales and development.

What are the technology drivers creating the disruption the MSP market?

Nerdio Paul F. Guerin, VP of Sales and Business Development: The ubiquitous availability of business grade internet, enterprise class colo facilities, and advancements in virtualization technology coupled with cloud IaaS from Amazon (AWS) and Microsoft (Azure) are changing the way way MSPs deliver services to the customers in a disruptive way.

Where are managed services going?

Guerin: Historically MSPs derived their revenue from selling hardware and software and providing the professional service needed to implement business solutions for their customers. Today, while the MSP market is flourishing, revenue from those traditional sources is shrinking and all of the growth is being fueled by managed services and cloud services. How to grow managed service revenue and deliver advanced cloud services to customers in a profitable way is the big challenge MSPs face today.

Is AWS vs Azure going to be like Pepsi and Coca Cola?

Guerin: Amazon, Microsoft, and IBM are the three public cloud powerhouses vying for the hearts and minds of the MSP community. They all have their strengths and weaknesses today and are working furiously to fill in the gaps. Adar has built a very successful business leveraging technology from VMware and Microsoft, among others, so it's logical that our initial public cloud service will be Microsoft Azure based with an all Microsoft technology stack. We will of course follow the market closely and down the road to make sure our technology runs on the public clouds our partners require.

Are MSPs getting out of the IaaS business?

Guerin: Many MSPs today are still heavily invested in their own IaaS offerings. However, what we see in the market is that more and more MSPs are looking to invest their resources in other more strategic things and are looking to leverage public clouds and partner with advanced cloud service providers like Adar to deliver business solutions for their customers. The migration from on premises to the cloud is a dramatic shift for both the customer and the MSP, but there is no question this is where the market is going.

How will MSPs stay competitive without advanced cloud services?

Guerin: I think there would be strong agreement among the MSPs who service the SMB marketplace that cloud services is the direction the market is moving, and that in order to stay competitive, this must be baked into their business strategy. It is estimated that Microsoft alone is adding as many as 50K new Office 365 users a month! The question, though, is not only how to migrate their customers to the cloud, but how to do that profitably? Many cloud services like backup and IaaS, have already been commoditized and margins are low. This is where a comprehensive offering like ITaaS can be strategic. Not only does the service itself deliver healthy margins for the MSP, but many of the core managed services revenue streams such as onboarding, help desk, and virtual CIO are integral to delivering it to the customer.

Wheel_v4(1).jpg

Many MSPs started to build their own ITaaS offering. Why do you think there may be a shift?

Guerin: Until recently, there have not been many good "buy" options in the buy versus build analysis for ITaaS. The advancement in public cloud IaaS by Microsoft, Amazon, and IBM is also causing many MSPs to rethink their decision to invest in their own IaaS. Building an in-house solution is expensive, time-consuming, requires highly skilled (and costly) technicians, and is fraught with risk. If an MSP can achieve the same or better margins partnering for advanced cloud services, this makes a lot of sense. Partnering is safer, faster, and often a better economic decision. This strategy also frees up the MSP to focus on their core competency, which is providing managed services to their customers, rather than being software developers themselves.

How important is the cost of service delivery to MSPs today?

Guerin: The cost and quality of service delivery is becoming more and more critical for MSPs. The technology is getting more complex and the cost of engineering resources is increasing. In some parts of the country, you could make the case that this pool of talent is fully employed. What's needed are proven solutions that can be implemented and managed in a cost effective way.

Is ITaaS the answer?

Guerin: I don't know if ITaaS is THE answer but it is absolutely part of the answer. Nerdio is a proven advanced cloud service that is in use by hundreds of customers and thousands of users! It enables MSPs to fully migrate (desktops and servers) from on prem to the cloud. Not only is Nerdio a perfected VDI-centric platform, but the Nerdio Admin Portal (NAP) provides discovery, provisioning, onboarding, management, and billing functionality that make deploying and managing the service cost effective and has a high quality of service delivery.

Nerdio was a successful MSP that chose to build an ITaaS platform - explain?

Guerin: Adar, the developer of Nerdio, has been a successful MSP in the cloud services space for a dozen years. The company has strong domain expertise and sees the problems that need to be solved - to facilitate the migration of SMBs to the cloud - through the eyes of our MSP partners. A couple of years ago, Adar realized that the best strategy to achieve our vision as a company was to productize our ITaaS platform and provide the provisioning and management technology (NAP) that would allow other MSPs to become ‘us' in their market. This was the genesis of Nerdio, and today our partners are delivering high margin advanced cloud services to their customers. Based on the feedback we've received since the introduction of Nerdio, there's no question that our timing is right.

About Paul Guerin:
Paul Guerin is a serial entrepreneur who has over 25 years of high-tech experience. Early on, he was part of the original executive sales team for Lotus Development Corporation, one of the most successful software companies of that era. Paul went on to hold senior executive positions in a number of successful businesses such as Beyond, Torrent Systems, and Digital Archaeology. To top it off, most recently he served as CEO of the well-known venture-backed startups Rebit and Jabber. Originally from the Big Apple, Paul has a Masters from St. John's University in Queens. When Paul's back home in wonderfully scenic Colorado, you'll find him hitting the slopes and making the rest of us jealous.

More Stories By Xenia von Wedel

Xenia von Wedel is a Tech blogger and Enterprise Media Consultant in Mountain View, serving clients in a variety of industries worldwide. She is focused on thought leadership content creation and syndication, media outreach and strategy. She mainly writes about Enterprise, B2B solutions, social media and open source software, but throws the occasional oddball into the mix. Buy her a coffee if you like her article: http://xeniar.tip.me

@ThingsExpo Stories
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
SYS-CON Events announced today that EnterpriseTech has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effic...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and ...
SYS-CON Events announced today that CHEETAH Training & Innovation will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CHEETAH Training & Innovation is a cloud consulting and IT training firm specializing in improving clients cloud strategies and infrastructures for medium to large companies.
SYS-CON Events announced today that Datanami has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datanami is a communication channel dedicated to providing insight, analysis and up-to-the-minute information about emerging trends and solutions in Big Data. The publication sheds light on all cutting-edge technologies including networking, storage and applications, and thei...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...