Welcome!

@CloudExpo Authors: Pat Romanski, Elizabeth White, William Schmarzo, Liz McMillan, Yeshim Deniz

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

@CloudExpo Stories
In his session at 20th Cloud Expo, Brad Winett, Senior Technologist for DDN Storage, will present several current, end-user environments that are using object storage at scale for cloud deployments including private cloud and cloud providers. Details on the top considerations of features and functions for selecting object storage will be included. Brad will also touch on recent developments in tiering technologies that deliver single solution and an end-user view of data across files and objects...
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 20th Cloud Expo, Tom Eck, Industry Platforms CTO at IBM Cloud, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing developers ...
For financial firms, the cloud is going to increasingly become a crucial part of dealing with customers over the next five years and beyond, particularly with the growing use and acceptance of virtual currencies. There are new data storage paradigms on the horizon that will deliver secure solutions for storing and moving sensitive financial data around the world without touching terrestrial networks. In his session at 20th Cloud Expo, Cliff Beek, President of Cloud Constellation Corporation, w...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
SYS-CON Events announced today that DivvyCloud will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. DivvyCloud software enables organizations to achieve their cloud computing goals by simplifying and automating security, compliance and cost optimization of public and private cloud infrastructure. Using DivvyCloud, customers can leverage programmatic Bots to identify and remediate common cloud problems in rea...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assis...
Interested in leveling up on your Cloud Foundry skills? Join IBM for Cloud Foundry Days on June 7 at Cloud Expo New York at the Javits Center in New York City. Cloud Foundry Days is a free half day educational conference and networking event. Come find out why Cloud Foundry is the industry's fastest-growing and most adopted cloud application platform.
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to ov...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
SYS-CON Events announced today that A&I Solutions has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 1999, A&I Solutions is a leading information technology (IT) software and services provider focusing on best-in-class enterprise solutions. By partnering with industry leaders in technology, A&I assures customers high performance levels across all IT environments including: mai...