Welcome!

IBM Cloud Authors: Elizabeth White, Yeshim Deniz, Pat Romanski, Liz McMillan, Carmen Gonzalez

Related Topics: IBM Cloud, Microservices Expo, Containers Expo Blog, @CloudExpo

IBM Cloud: Blog Post

Technology Drivers Disrupting the MSP Market | @CloudExpo #Cloud #ITaaS #Azure

Fireside chat with Paul Guerin, Vice President at Nerdio

Paul Guerin is a serial entrepreneur who has over 25 years of high-tech experience and channel sales and development.

What are the technology drivers creating the disruption the MSP market?

Nerdio Paul F. Guerin, VP of Sales and Business Development: The ubiquitous availability of business grade internet, enterprise class colo facilities, and advancements in virtualization technology coupled with cloud IaaS from Amazon (AWS) and Microsoft (Azure) are changing the way way MSPs deliver services to the customers in a disruptive way.

Where are managed services going?

Guerin: Historically MSPs derived their revenue from selling hardware and software and providing the professional service needed to implement business solutions for their customers. Today, while the MSP market is flourishing, revenue from those traditional sources is shrinking and all of the growth is being fueled by managed services and cloud services. How to grow managed service revenue and deliver advanced cloud services to customers in a profitable way is the big challenge MSPs face today.

Is AWS vs Azure going to be like Pepsi and Coca Cola?

Guerin: Amazon, Microsoft, and IBM are the three public cloud powerhouses vying for the hearts and minds of the MSP community. They all have their strengths and weaknesses today and are working furiously to fill in the gaps. Adar has built a very successful business leveraging technology from VMware and Microsoft, among others, so it's logical that our initial public cloud service will be Microsoft Azure based with an all Microsoft technology stack. We will of course follow the market closely and down the road to make sure our technology runs on the public clouds our partners require.

Are MSPs getting out of the IaaS business?

Guerin: Many MSPs today are still heavily invested in their own IaaS offerings. However, what we see in the market is that more and more MSPs are looking to invest their resources in other more strategic things and are looking to leverage public clouds and partner with advanced cloud service providers like Adar to deliver business solutions for their customers. The migration from on premises to the cloud is a dramatic shift for both the customer and the MSP, but there is no question this is where the market is going.

How will MSPs stay competitive without advanced cloud services?

Guerin: I think there would be strong agreement among the MSPs who service the SMB marketplace that cloud services is the direction the market is moving, and that in order to stay competitive, this must be baked into their business strategy. It is estimated that Microsoft alone is adding as many as 50K new Office 365 users a month! The question, though, is not only how to migrate their customers to the cloud, but how to do that profitably? Many cloud services like backup and IaaS, have already been commoditized and margins are low. This is where a comprehensive offering like ITaaS can be strategic. Not only does the service itself deliver healthy margins for the MSP, but many of the core managed services revenue streams such as onboarding, help desk, and virtual CIO are integral to delivering it to the customer.

Wheel_v4(1).jpg

Many MSPs started to build their own ITaaS offering. Why do you think there may be a shift?

Guerin: Until recently, there have not been many good "buy" options in the buy versus build analysis for ITaaS. The advancement in public cloud IaaS by Microsoft, Amazon, and IBM is also causing many MSPs to rethink their decision to invest in their own IaaS. Building an in-house solution is expensive, time-consuming, requires highly skilled (and costly) technicians, and is fraught with risk. If an MSP can achieve the same or better margins partnering for advanced cloud services, this makes a lot of sense. Partnering is safer, faster, and often a better economic decision. This strategy also frees up the MSP to focus on their core competency, which is providing managed services to their customers, rather than being software developers themselves.

How important is the cost of service delivery to MSPs today?

Guerin: The cost and quality of service delivery is becoming more and more critical for MSPs. The technology is getting more complex and the cost of engineering resources is increasing. In some parts of the country, you could make the case that this pool of talent is fully employed. What's needed are proven solutions that can be implemented and managed in a cost effective way.

Is ITaaS the answer?

Guerin: I don't know if ITaaS is THE answer but it is absolutely part of the answer. Nerdio is a proven advanced cloud service that is in use by hundreds of customers and thousands of users! It enables MSPs to fully migrate (desktops and servers) from on prem to the cloud. Not only is Nerdio a perfected VDI-centric platform, but the Nerdio Admin Portal (NAP) provides discovery, provisioning, onboarding, management, and billing functionality that make deploying and managing the service cost effective and has a high quality of service delivery.

Nerdio was a successful MSP that chose to build an ITaaS platform - explain?

Guerin: Adar, the developer of Nerdio, has been a successful MSP in the cloud services space for a dozen years. The company has strong domain expertise and sees the problems that need to be solved - to facilitate the migration of SMBs to the cloud - through the eyes of our MSP partners. A couple of years ago, Adar realized that the best strategy to achieve our vision as a company was to productize our ITaaS platform and provide the provisioning and management technology (NAP) that would allow other MSPs to become ‘us' in their market. This was the genesis of Nerdio, and today our partners are delivering high margin advanced cloud services to their customers. Based on the feedback we've received since the introduction of Nerdio, there's no question that our timing is right.

About Paul Guerin:
Paul Guerin is a serial entrepreneur who has over 25 years of high-tech experience. Early on, he was part of the original executive sales team for Lotus Development Corporation, one of the most successful software companies of that era. Paul went on to hold senior executive positions in a number of successful businesses such as Beyond, Torrent Systems, and Digital Archaeology. To top it off, most recently he served as CEO of the well-known venture-backed startups Rebit and Jabber. Originally from the Big Apple, Paul has a Masters from St. John's University in Queens. When Paul's back home in wonderfully scenic Colorado, you'll find him hitting the slopes and making the rest of us jealous.

More Stories By Xenia von Wedel

Xenia von Wedel is a Tech blogger and Enterprise Media Consultant in Mountain View, serving clients in a variety of industries worldwide. She is focused on thought leadership content creation and syndication, media outreach and strategy. She mainly writes about Enterprise, B2B solutions, social media and open source software, but throws the occasional oddball into the mix. Buy her a coffee if you like her article: http://xeniar.tip.me

@ThingsExpo Stories
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
Organizations do not need a Big Data strategy; they need a business strategy that incorporates Big Data. Most organizations lack a road map for using Big Data to optimize key business processes, deliver a differentiated customer experience, or uncover new business opportunities. They do not understand what’s possible with respect to integrating Big Data into the business model.
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Amazon is pursuing new markets and disrupting industries at an incredible pace. Almost every industry seems to be in its crosshairs. Companies and industries that once thought they were safe are now worried about being “Amazoned.”. The new watch word should be “Be afraid. Be very afraid.” In his session 21st Cloud Expo, Chris Kocher, a co-founder of Grey Heron, will address questions such as: What new areas is Amazon disrupting? How are they doing this? Where are they likely to go? What are th...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...