Why this Microsoft CSP is relinquishing its Direct status
Ultima CEO reveals rationale for opting to use Tech Data for its CSP offerings
Ultima has opted to work with Tech Data to provide a Cloud Solution Provider (CSP) rather than continuing as a direct provider.
Scott Dodds, CEO of Ultima, told CRN that the decision "makes more sense" and frees up time to cater to customer demands.
Microsoft raised the financial threshold to its CSP programme last year, meaning that many previously tier-one (direct) partners no longer met the financial threshold and subsequently became tier-two (indirect) partners that have to buy through a CSP.
However, Dodds stated that these changes did not play a role in Ultima's decision to team up with the broadliner. Rather, the biggest driver for the move was the time the solutions provider could save and use to focus on its clients.
The arrangement with Tech Data allows the solutions provider to offer three levels of CSP service depending on their needs, as well as access to a self-serve portal for licensing expertise and billing, among other capabilities.
"We were happily working on the direct model - and we could have continued to do that ad infinitum - but felt this was a better method of managing this world for our own benefit and for our clients' benefits," Dodds (pictured) told CRN.
"This makes more sense to us going forward because our value is focusing on the client and their outcomes, not the technology platform to deliver it.
"This way, we can spend more time doing what we should be doing, which is engaging the client on the outcomes of this technology, and the support and management of it, rather than building the tool sets to keep it up and running."
Digital transformation is fuelling the need for CSP services, as well as the flexibility now demanded by customers, according to Dodds.
However, Ultima decided to partner with Tech Data to save it the time and effort of getting bogged down in being a direct CSP.
"The concept of us building and developing software - with all the hooks and API and everything else you need to constantly keep updated - made no sense to us, which is why, with the recommendation of Microsoft, we've ended up working with Tech Data, and building our platforms with them," he said.
Dodds insists that rather than having a degrading effect on Ultima's relationship with Microsoft, this move will enhance it as the company will now have the time to focus on developing the vendor's other services, including its licensing offerings.
"Our engagement with Microsoft will probably get deeper, as we move to more expert levels of some of our engagements and accreditation," he stated.
"What was really a major driver for the decision was ‘How do we get more of the different complexities of Azure and Office 365 and all the other things that will come out through Microsoft in the next few years?'
"That's where we're spending our time rather than the platform. The key for us is to make sure that we are continuing to evolve and develop our technical capabilities in the areas that are most valuable to Microsoft and our clients."
The partnership allows Ultima to react in real time to customer needs and gives it more flexibility to focus on providing solutions, stated the CEO.
"Ultimately, it's about doing what we all should be good at, rather than the things that we would have to do otherwise," said Dodds.
"It's just an efficiency play, and making sure that we get these things managed in real time, not after the event.
"There's a clue in the ‘solution' bit of cloud solution provider, which means that we should be providing solutions, not just providing better licensing and other capabilities.
"This is about deep engagement, helping clients get full value, and driving the technical engagement with this, which is something that CSP allows us to do in a much deeper way."