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Q and A: The GFC was a good thing for MSPs, says LogicNow

Chris Player | Sept. 9, 2015
LogicNow general manager, Dr. Alistair Forbes, has watched the MSP movement grow from humble beginnings to the widely adopted partner model it is today. Here, he discussed the evolution of service providers and what the company is doing locally with partners.

If they can differentiate themselves in that space, it helps them appeal to larger organisations that may have some of their own internal IT capability and are looking to supplement that with managed services. That’s where we have put a lot of focus in terms of the product of course but also in terms of messaging and how they go to market with these offerings.

If you look at the external research that has been conducted in the space, you are looking at compound annual growth rates of 15 percent over the next few years, which is far greater than you would expect in terms of general IT spend. That’s a bigger opportunity for partners.

Most end user businesses are very familiar that they need an AV product, but it is no longer the case that that is adequate. They need a proper multi layered defence, so they need something that is going to manage email security, AV, patching, website filtering and the like.

That’s an area where MSPs can package all that into a managed services offering, and it is much more efficient for them than going to try and sell each of those things individually.

What starts the discussion on a move for resellers to an MSP model?

The key thing, if partners are going to make that transition, is they have to be able to handle the customer service relationship in a different way. It is no longer a traditional product type sale. There are two key tools they need for this, one is the platform to manage the technology and the other is the customer service management tool.

So what is the typical model for your MSP partners?

It depends on how far along they are in the cycle. The well established and sophisticated ones are typically looking at security and backup as two of the key planks of the service. They would have various components underneath that, but if you boil it down, availability, confidentiality and integrity are the three pillars of security.

The ones that are the most successful are the ones that manage to hide all of that complexity from the client. Those would be the two key pillars, security and back-up.

We have a team of over a dozen people in Australia now that cover all of that and they are supported by the global organisation. Some of the things we discussed at the conference were operational as well so that is another area we look to engage with partners. We spoke about how partners can help develop their businesses structure within their own organisations.

We now have an research and development organisation of about 200 people so we have invested a lot into continuing to build the product set and giving partners the tools they will need.

 

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