According to a recent article, both Microsoft and Google are taking their cloud computing war to the next stage by developing Infrastructure as a Service products. What does this mean for the average MSP and cloud computing company? Let’s explore.
Keep one thing perfectly clear as you read this article (and for other things pertaining to our industry as well); the IT channel exists only as long as the channel remains relevant. Call this Charlie’s Law #2. Channel “resellers” and service providers have always had a tenuous relationship with hardware and software companies. Countless articles, sessions, and discussions have been spent on this topic and I am not sure there is an answer to why some companies embrace the channel and others do not. But, the point of this article is to predict, if we can, what this latest Microsoft/Google battle will mean for the rest of the MSP community.
It started, if you recall, with the messaging and collaboration tools; Google shot first and entered the space with Google Apps and Microsoft responded with BPOS (later renamed Office 365). Now, it seems that the two software giants will be entering a new field of battle; Infrastructure as a Service (IaaS). In my opinion, this should leave no doubt as to what their intentions are, at least regarding the IT channel. Both companies intend to win and if the IT channel suffers as collateral damage I am not sure that matters at this stage. It is an all out war and everything is at stake.
Cloud (or more importantly, the mass consumer awareness of cloud) has changed everything. Both Microsoft and Google are developing products that DO NOT require IT channel companies (i.e., MSPs). Don’t mistake this statement to mean that Microsoft/Google are intentionally trying to harm the channel; I do not think that is the case. Rather, I think both corporations are so eager to beat the other that they are willing to do anything in order to win, even if it means competing in areas traditionally left to the MSP community.
Call me cynical but you cannot dispute the fact that the last campaign between Microsoft and Google left the MSP community reeling as decades old business models were thrown into the air as MSPs tried to figure out how to find margin in hosted Exchange when everyone was pushing cloud based (and vendor delivered) messaging and collaboration solutions direct to the customer. Now, by entering the “server” market with IaaS, nobody should have any doubt about where this next battle will take place. Nor, I should mention, should any MSP be standing around waiting to see what happens. This is the time when MSPs need to prove their relevance. Innovate and advance or be left in the dustbin of history, I say. Charlie’s Law #1; he who owns the customer relationship wins!
It is not, however, too late to change things. Both Microsoft and Google (not to mention other hardware/software vendors) can be swayed. If MSPs continue to push forward and embrace new models for managed services and cloud delivery, where the MSP remains relevant and important, big vendors will take notice and modify their attitudes and policies. Even now, other vnedors are taking notice of Microsoft and Google and learning from their behavior. That means these vendors are deciding, even now, about whether to embrace a channel or direct sales approach.
MSPs, be relevant!