Tightened budgets making SaaS attractive

Today we honor the birthday of the Rev. Martin Luther King, Jr., and tomorrow we have President Obama moving from the on deck circle to the home plate. However; we couldn't stop more bad news from the banks. Royal Bank of Scotland bites the dust on a massive 28 billion pounds ($41.3 billion) loss, which would be the biggest loss ever reported by a British company, ouch!

So if banks don't and won't lend, business that used to depend on it will have to employ operation cash preservation - CapEx to OpEx mode. While enterprise software vendors are pushing for SaaS contracts, it can benefit the small-mid size VARs, MSPs, and solution providers.

By doing the math correctly on licensing, services and hosting; solution providers can market a value package that makes their customer feel like they're receiving huge discounts. And because of current economic conditions, more businesses are willing to give SaaS a try, employing pilot programs to seek proof of concepts. Pre-sale SaaS trials are good for traditional customers that had no experience with SaaS and if the user experience is great and the price is right why wouldn't they continue?

This is why we developed our partner program around SaaS enablement for partners, reducing hardware and software risks to the minimal while allowing the focus to shift towards business, marketing (brand) and sales. We can't control the shift in technology but we can implement control in our business and that's where the focus should be to deliver IT smarter.

The Empire Strikes Back: Reselling Google Apps

Another vendor has entered the channel with promises and optimism, this time its the search king Google. Yesterday Google introduced their new Reseller Program focus solely on gApps Premier Edition (email, chat, word, spreadsheets, presentations, and security). Until now Google only cooked up the menu to resell Google enterprise search appliances, Apps and Maps to enterprise customers. Key word 'Enterprise' partner program.

And now Google is ready to grow their channel during this economy knowing Microsoft is consolidating with web-based Office Web Applications not ready until 2010.

Google and Microsoft solutions can actually coexist depending on each customer on a case-by-base basis since Google has a slightly different approach to their channel. Solution providers or VARs may even combine the two but ultimately Google App is more appropriate as a cloud-based solution at lower cost than say an on-premises solution from Microsoft. Microsoft is restructuring its channel while Google has just begun, the perfect storm's thunder and lighting.

I am not surprise that Google doesn't having a deal registration because they spend years building their brand and offer free tools directly to customers. So the customers are already trained and used to their brand while Microsoft spend trillions creating products to build a service around their brand.

VARs and solution providers should focus on the business drivers: Continue to foster your relationship with your customers, look for ways to add value to their business, strengthen your brand, and deliver flexible solution (SaaS) that you can build your business on for the long haul. That translates to high customer retention, brand recognition and recurring revenue with real margins!

Margins + Branding + Process Automation = Pointivity's Partner Program

Over the past few weeks I wrote about the changes in the industry and the shifts in perception from IT consultants, vendors to solutions providers. It is easy to see why we've designed the partner program to focus on developing the the weaker areas for VARs: branding, margins, process automation, and product offerings. Here is the value proposition for our program:


Leveraging Pointivity's superior private label hosted services (with storefront!) allows VARs to offer a wide range of products without having to pay for hardware, software, licensing and maintenance.

One of the fastest way to start is to expand your offering to your customers providing a complete set of services such as hosted Microsoft Exchange, SharePoint, Dynamics, and wireless emails to earn additional business process outsourcing revenue.

Majority of the businesses needs emails and offering enterprise email solutions such Microsoft Exchange and Blackberry services creates added value from a cost saving(CapEx to OpEx) and infrastructure management perspective(overhead and risks). If you are able to offer the basic IT needs to your customer, it will create future opportunities for additional services while lifting you towards the trusted advisor role. We're working on additional services such as email archiving or efax to complete the email offering.

Our program includes “on-demand” provisioning automation, ecommerce engine (online store), integrated billing (payment gateway options), and feature-rich control panel for administration and private label control panel for end-users.

Your own private label online store allows your customers to sign up (self-service checkout) then the system automatically provisions and deploy the services immediately. It is all about streamlining your business process while providing a branded solution. As the store grows we will be adding more business essential applications such as accounting, CRM or even dedicated servers to strengthen your hosted services offering.

In addition, the solutions is being offered on a wholesale pay-as-you-sell basis allowing your own pricing structure to adjust to the way you sell. You can sell them in packages or include it in your other solutions such as managed services, backup/disaster recovery or even application hosting depending on how you bundle and deliver them.

The more hosted services you offer the higher chance of customer retention because you’re able to provide a wider range of products while aligning both you and your customer’s overhead to revenue via SaaS. Creating value for your customers is the key for high customer retention and it can be done easily with our partner program.

2009 MSP Watch

An interesting article from MSPmentor with regards to Dell aggressively pushing their managed services.

Joe made some excellent points on the fact that Dell is focused on the mid-market while small MSPs gets the SMB space. There is also the argument that MSPs will do a better job servicing their clients vs big guys like Dell which allows a separation in market share.

It will be interesting to see what MSPs will do once Dell gains more ground as momentum shifts to À la carte service at very competitive prices. Hardware and software will continue its commoditizing path to serve the SaaS model, aggressive direct sales will be the focus as time passes. You can't piss off everyone in one go, but you can break them down so only the strong survives.

Step Right Up: Microsoft App Store Now Selling at a Online Store Near You

Microsoft today launched their first online store in the US (already available in the U.K., Germany and Korea). With the launch, US customers can buy first-party software and hardware directly from the internet. Products include software, devices and hardware, after payments are confirmed, customers can immediately download products and install them right away.

As we continue to see the "going direct" strategies implemented by Microsoft, VARs will need to act rather than compliant in adapting the inevitable - MSP will have a tough time competing against the big daddy (that used to make them money) for what will become the future of the channel, wait a minute what channel? According to ChannelWeb, Allison Watson, corporate vice president of Microsoft's Worldwide Partner Group, made no mention of the Microsoft Store and said that there were plenty of opportunities (hmmm...really?) for VARs to grow, as long as they stay focused on projects that improve energy efficiency, boost productivity and drive down costs.

I wonder what sort of margins can you continue to profit from Microsoft? How long can VARs sustain to this rate of change? Don't you have to survive so you can continue to deliver value?

In addition, they are rolling up the end-user customers with deals like going direct aggressively with 0% finance for Dynamics for 36 months (launched today as well) or the BizSpark program offering Web startups free software before becoming profitable. If any of these pilot programs are wildly successful (which I don't see why not), more products and services will be rolled out with even more aggressive offerings, don't forget even in this recession Microsoft is one of the few companies that's got a ton of cash in the bank, $26 billion to be exact.

You can't fight the trend as VARs or MSPs and you must live to fight another day by transforming your business to deliver IT smarter.

Salesforce Chases After Cloud With Force

Salesforce announced the addition of Force.com, which provides a hosted infrastructure for customers to run websites in Salesforce cloud. They're also going to provide the building blocks to integrate with business applications when everything is available in 2009.

It sounds like they're trying to add value to their offerings via the cloud hype while expanding their product reach further with Facebook and Amazon partnership.

Moving forward, Salesforce will continue to be under pressure from Oracle, SAP and especially Microsoft's new Azure, which is pretty much the same offering. Not to mention Microsoft is working hard to replace SaaS with S+S, it's amazing how Salesforce expects to pass US$1 billion in annual revenue for the first time but its profit margin remains extremely slim.

The IT value stack is getting squeezed by players of all sizes trying to reshape the changing roadmap in IT. As we continue to see acceleration in the cloud hype there is also a fundamental shift in how applications are used and delivered but until the general perception adapts to the cloud idea, I still believe in the hybrid model that will emerge as the real solution to the future of SaaS.

Another New Site launched by Microsoft on S + S

Derek pointed out to me today that Microsoft launched another new site - Software + Services yesterday. I like that video on the homepage showing how the "Microsoft Cloud Server Provisioning" works and my favor part is the dude receives a message on his TV screen about his server while he is in the middle of his Xbox game! He then walks up to the TV and touch-screens his way to view his cloud provisioning progress.


Clearly Microsoft is ready for the S+S assault 2.0, it'll be interesting to see how ISVs and MSPs respond.

Microsoft Azure: Their Entrance Into Cloud Computing

Monday this week Microsoft launched their new cloud computing AZURE. Billed as "an internet-scale cloud services platform hosted in Microsoft data centers," which explains why they were shipping massive number of servers for months now.

Azure is designed to provide an "operating system" and a set of developer services that will enable a broadening of the Microsoft platform from on-premise to the Cloud. It should be noted that Azure is positioned as a platform similar to Google Apps and just like before Microsoft is the last to the game and will have their impact. In addition, Microsoft is to provide hosted Windows Servers with full Admin access. Supposedly you can choose how much RAM/CPU you want. (2009 release)

Get ready as Microsoft continues to eat up the technology layers from application to platform, to infrastructure. Stay tune for more information later.

Pointivity Launches New Partner Program to Resell Online Services

Pointitivy released a new partner program for partners to resell a wide range of online services included hosted Exchange, SharePoint, CMR, BlackBerry services, anti-virus & spam filters by Postini, and email archiving by Global Relay.  Through this new program, partners will receive complete end to end private label solution with valuable brand support package and a provisioning engine to get started immediately.

You get to choose from different private label storefront templates to launch the ecommerce store that includes all the html, graphics and content. Next you will receive your own control panel to manage your customers and your customers get access to your branded control panel for a wide range of self administer features.

We provide all the go-to-market strategies for partners to strengthen their brand(s) and create stickiness with their customers.

For more information please visit our partner site.

Pointitivy to Provide Training on Box Office and DAAS for Zenith Partners

This week is the first week of Zenith Infotech's DAAS (Data Center as a Service) and Box Office training at Pointivity's facility in San Diego. Zenith Partners who signed up for training will receive a 3-day seminar from our President/CEO, Kent Erickson and CTO, Paul Scuba.

More information on DAAS and Box Office Training.