The Microsoft managed service industry and their providers are about to be replaced by Google Apps resellers and their new emerging cloud business model.
Online PR News – 24-August-2012 – Fri. Aug. 24, 2012 Los Angeles, Ca. – Information Technology has a long running foundation in forward motion, and the competition is brutal. The weakest links, slowly but surely, are culled out of the market.
Darwin would be proud.
To keep up, over the years, growing businesses have been outsourcing solid, reliable IT management through Managed Service Providers. These MSP’s maintain on site servers and provide tech assistance to companies that are able and willing to front the bill. Problem is, human beings have a history (especially over the last century) of putting themselves out of work with their own evolving technology.
“I’m not going to lie, I do see myself as something of an MSP killer.” says a grinning Crisantos Hajibrahim, founder and CEO of VIWO, one of Google’s longest running Google Apps resellers. “With the margins so thin, it’s going to be almost impossible for Microsoft MSP’s to transition their business to a cloud based service model. I took a Microsoft MSP managed business with 50 users paying $5,000 a month on Exchange, to $2500 a year. No wonder these MSP’s can’t transition their business. They’d have to cannibalize themselves or spin off a separate company with lower expectations, cost, and room to grow with the market. Instead, they’d rather go down with a sinking ship, just because they have nowhere to jump to.”
There is an exponentially growing need for business professionals to access their information anywhere, everywhere, on the devices that they use and prefer. Browser and app based data interaction is the new paradigm and Google’s been hanging out on that cutting edge for some time now.
“When I was first introduced to Google Apps in 2007, I knew I needed to be involved. I had just invested $40,000 dollars in a N-Able MSP management system that I literally threw away after I saw Google Apps."
Crisantos believes that a bundle solution will be the new way to make money in this market. He’s currently working with big name communication providers to deliver these types of services.
“To survive, MSP’s need to learn how to consult, setup, and support ERP type systems that integrate into cloud based activity and provide unified communication services. With a ‘Business In A Box’ approach I can charge $50 per user per month instead of $5 and grow my business, in spite of the competitive market.”
As long as MSP’s are able to convince clients that their services are truly worth an arm and a leg, they’ll be able to scrape by. However, considering the current economic state of the world, it will not be surprising to see more and more businesses looking for a cost effective, progressive change to how they communicate and share their information.