Cloud computing is here to stay, and as end-user usage grows, there are significant impacts to many traditional IT resellers.  In this blog, I’ll briefly explain some of the challenges, and then I’ll discuss what the Data Management business at CA Technologies is doing to make it simpler for MSPs to license our software.

Many cloud services bypass the traditional IT channel entirely and are sold directly to an end-user.  And for every end-user that takes on, for instance, a hosted email service, that’s one less server that a reseller can sell – not to mention the server OS, email application, network connectivity, backup device and software, etc. The knock-on effect for a traditional reseller can be significant.

And as a result we are seeing traditional resellers looking to sell IT services.

In fact, over half of the partners (57%) we surveyed in this year’s Channel Index, have either made the transition to MSP business models or are in the process of doing so, with an additional 30% saying they are aware they need to start the transition.

For that 30%, tough decisions abound and can be overwhelming.

Should the reseller sell pre-packaged SaaS solutions (there’s a limited amount available via the channel) or services that they built themselves?

Should the reseller start their own datacenter (not a necessity in today’s environment), use public cloud platforms, or rent datacenter space from a provider?

A growing number of services providers are taking on the IT management for end-users. Another idea is for a reseller to set up a remote management and monitoring service for their clients, with a view to expanding this service to off-premise data protection down the road.

The truth is that there aren’t hard and fast rules on how to do any of this.  What is certain, however, is that as more and more of the customer’s budget is spent with IT service providers, traditional resellers are responding to the market evolution, changing their business model to provide new managed services that meet customer needs.

CA Technologies is committed to supporting our partners with our technology, our MSP Center of Excellence and our MSP licensing program.

And we’re focused on making it as simple as possible.

Last month, we announced CA Arcserve product enhancements and major updates to our CA Arcserve licensing that let MSPs decide how they want to consume it.

Basically, any MSP who meets a minimum sales threshold can get low monthly subscription pricing per server, per TB or per socket – whatever way makes the most sense for their business and customers.  This is in addition to entry-level per-terabyte pricing already offered.

We are committed to continue working with our partners, giving them the licensing flexibility and simplicity to help alleviate the difficult decisions that emerge as their business models evolve.