Channel poised to land a share of MSP market

Software vendor reveals that resellers are turning to the managed services provider sector

By Sara Driscoll

30 Apr 2007

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Channel players are set to take a slice of the €6.3bn managed services provider market (MSP), according to software vendor Nimsoft.

Gary Read, chief executive at the firm, which is holding MSP best practice seminars in the UK and US in May to educate MSPs, said that many resellers are already moving into this market sector.

“It used to be that resellers sold the solution, implemented it and did a bit of post-sales support,” Read said. “Now, due to the complexity that continues in technology, end-users are demanding more and turning to their trusted suppliers to take a greater role in managing the IT infrastructure. A large number of MSPs are the more traditional VARs.

“The channel will drive most of the €6.3bn growth in the MSP market. Most resellers are already doing some kind of services, whether it be managing email or web sites, to the entire infrastructure. Companies not doing this will eventually find themselves frozen out of various opportunities.”

Charles Weaver, president of the MSP Alliance, an independent organisation that offers accreditation and training of MSPs, said that the more established resellers are adding services to their portfolios all the time.

“There is now a lot of demand from end-users for real IT management,” he said. “Reacting to problems is no longer acceptable; resellers must be pro-active – VARs that do not could find themselves in real problems.”

Read said that Nimsoft works directly with MSPs and is using its roadshows to help channel players who may be considering a move into the sector. The vendor is also looking to create benchmarks and standards and is working with the MSP Alliance to facilitate this.

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