Rise of the Managed Services Distributor

“Broadband providers and traditional web and email hosting providers have new opportunity to increase their average selling prices, specialized SaaS providers are evolving into XaaS providers adding management as a value proposition.

Over time, customers will look to a channel that can aggregate multiple Cloud and SaaS services and provide integration and support services and a single SLA.”

“There is an opportunity for the channel therefore to transform their current business model to adapt to this new environment, blending local onsite and remote support models. At the same time direct marketers, especially in the mature markets are also experimenting with entering the market looking for services margins.

Until the messaging is crisp the market will remain confused giving rise to a new set of Distributors namely, Managed Services Distributors (MSDs) who provide a standard platform and service models to VARs, retail and other resellers who in turn resell to their customers within driving distance.”