Welcome!

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

Latest Stories
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle.
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...