Partnerships key to survival in a managed service world

Resellers and ISVs must team up if both are going to be successful selling managed services to customers.

Traditional resellers need to form new partnerships if they are to make a successful transition to a managed services model.

With the world of resellers, ISVs, service providers and vendors converging around a service model the traditional channel is in a position to deliver customer relationships to those looking to team up to deliver managed services.

Speaking at the IBM MSP Forum in London Alistair Edwards, principal analyst at Canalys, said that there was a transformation taking place in the industry and resellers needed to change their approach in order to ensure survival.

"There is a transition fromk on-premise to a managed and cloud models and although it is a gradual evolution and not a revolution the challenge for resellers is to capture that growth by being in the right place on the path of that transition," he said.

He said that resellers knew the right people at customers and had the buying points but needed to think about connecting with specialists that had the ability to deliver a high quality service with experience of SLAs.

"We are seeing a new ecosystem emerging. Resellers have had the on-premise relationship but the service providers have the SLA skills but often lack the buying points. There will be more partnerships between those communities," Edwards said.

"Vendors can do more to help bring those two sets of communities together," he added that the channel would need help making the transition.

Edwards added that the managed services market is expected to grow by 50% in the next six years and the direction the market was taking was clear.

One ISV said that it "spoke a different language from the tin-floggers" but it recognised that they had to work together if they were to be successful and he hoped vendors would step in more to b broker those relationships.

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