2011 was an exciting year for managed services and it seems that the next year will be no different. But, before we look into the future, let’s take a quick look at 2011 and the memorable moments. I’d like to start a new tradition by asking all of you to add your comments and memorable moments of 2011, if you’d care to share them with the community. Here are some of my recollections of the past year. 
Best Buy Purchases mindSHIFT: Perhaps no single event has occurred in the managed services profession in over 10 years that could match the legitimacy of a retail electronics store like Best Buy purchasing a veteran and certified MSP organization like mindSHIFT. While the aftermath of the transaction has been very quiet, having a mainstream company like Best Buy think so highly of our profession is in some way very rewarding, no matter what your thoughts are related to the acquisition.
Steve Jobs and iCloud: In the same year the world loses Steve Jobs, the iconic Apple CEO and visionary, the world also gains iCloud, a consumer focused cloud application that has the unforeseen side effect of making cloud computing as mainstream as email. iCloud may not be aimed at the business user but it has definitely brought the attention of the masses to cloud computing in general and what the possibilities are for businesses.
Zenith Infotech Changes: Zenith Infotech has experienced some major changes in 2011. First, it separated the company into two divisions, Zenith RMM and Zenith Infotech (the cloud and BDR division). Next, the company had some rather unpleasant dealings with its creditors. The last major event came when Zenith RMM changed its name to Continuum. The company came onto the managed services scene in 2004 and 2005 and seemed poised to dominate the industry. 2011 has presented some significant challenges to the company and it will be interesting to see how the organization reacts in 2012.
Fraud in the MSP Channel: The issue of fraud in the managed services (IT) channel has always been present, but in 2011 it seemed to reach the absurd. From hardware as a service companies being sued, to MSP websites (more than one) actually having their content stolen, we’ve witnessed some incredibly odd behavior. Luckily, this type of activity was kept to a minimum. Hopefully, 2012 will see this activity all but disappear.
Certifications: Certifications for MSPs and cloud providers flourished in 2011, and they did so on a global basis. The Unified Certification Standard, SAS 70, SSAE 16, and ISAE 3402 not only started the year with a bang but continued to spread to MSP and cloud organizations from the US, Canada, Belgium, Ireland, Romania, India, Australia, and elsewhere. More importantly, these certifications are now being used in the sales and marketing process for a lot of the companies which possess the credentials. As more end-users deal with providers who have been certified and audited, the more they will expect such credentials from other providers.
Collapse of the Channel: When everyone wants to sell direct, the channel ceases to be important. It has been a few years coming but when you have major hardware and software vendors developing undeniable end-user services (managed services and cloud offerings) it makes you wonder what they are thinking when it comes to their channel programs. More importantly, channel partners should be asking themselves what they are doing in channel programs when the vendor also has an end-user program. True professions don’t typically use channels. Maybe we are experiencing the true birth of the managed services and cloud profession.
MSP and Cloud Spending Increase: 2011 saw the continued rise of spending on managed IT services and cloud computing. From the SMB to the enterprise, companies across the globe have been watching their own IT budgets and incorporating MSP and cloud providers into their planning. 2012 looks like it will be more of the same, which is not bad at all.
Telephony Companies Embrace Cloud and Managed Services: 2011 was a busy year for the telco industry. Telephony VARs, telecommunications firms, and major carriers, all made significant investments into managed services. Much of the activity came through M&A transactions but there were a number of personnel hires that occurred, leaving no doubt in anyone’s mind that the telecommunications industry desperately wants into managed services.
Summary: 2011 was a good year for the MSP community. The global economy continues to create uncertainty and trepidation amongst organizations who only want certainty and predictability. This is the very thing managed services can provide. No wonder we have been witnessing a major push to managed services and cloud this year.
Cloud made its debut, to the residential end-user thanks in large part to Apple. Now businesses will be left with no doubt that cloud is a mainstream technology. The question is, private, hybrid, or public.
M&A transactions continued throughout the year, most notably the Best Buy entrance into managed services via mindSHIFT. Other deals happened on a global basis and will likely continue into 2012. Valuations also seemed to hold steady.
A lot happened this year. So, if we missed anything please drop us a line and let us know.