Some time ago, someone I trust told me that managed services threatened the entire IT channel ecosystem because it would eventually destroy the traditional hardware/software distribution model. They may have been correct in making that assertion.
There is an interesting CNET article that describes how Microsoft is now attempting to reinvent its role in the channel; in fact, trying to reinvent the channel itself, maybe inadvertently. In the last 24 months, a lot has happened in the channel to make me rethink everything I thought I knew. I used to take what I learned from MSPs and VARs as how the channel should operate. Now, those same models of behavior no longer exist.
Microsoft used to be the prototypical channel player. Make great software, engage with the chip makers, include the hardware OEMs, announce the product, bring in the distributors to get it to the channel, and let the channel players do what they do best. Now, Microsoft wants to bring its services and software directly to the customers. And, now with the Surface tablet, Microsoft will be excluding the hardware OEMs. Exception to the rule or what we can expect as ordinary channel business?
Everyone that used to be a major player in the channel, it seems, is now re-evaluating their delivery models and if they can, deciding to go direct to the end-user. Or, in other cases, the channel vendors are replacing long standing relationships with OEMs, distributors, and others, opting to streamline their service and product delivery models.
So, how does this impact MSPs? I think all MSPs should be taking notice of what is happening because these events will directly impact their ability to survive. The channel is dead. It has been replaced by a new set of rules where unless you are absolutely relevant to the product or service being delivered, you will be removed. MSPs do have one key advantage in that they traditionally have been the last stop before the customer. In other words, they represent the last mile of service in a previously long product delivery chain.
As long as MSPs remain relevant, their future is bright. If MSPs let another entity in between them and their customers, then all bets are off!
Sign up for MSPAlliance's Bi-Monthly MSP & Cloud Journal. Follow us via RSS,Facebook, and Twitter. Interested in writing for MSPAlliance? Please contact us for more information.
