IT services was a much different animal just a decade ago. The traditional break/fix model was predominant, with typical providers spending a vast majority of their time travelling between customer sites making repairs and performing regular maintenance and downloading software updates. Most issues weren’t even reported until system performance was severely affected or it went completely offline and someone decided to make a call. Those delays often lead to significant lapses in productivity, with major delays until the VAR could get someone onsite to diagnose the problem and make the necessary repairs.
The advent of managed services helped alleviate a number of those concerns for providers as well as their customers. Remote monitoring and remediation gave MSPs the ability to not only spot system performance issues before they turned into major problems, but to fix a number of them from the comfort of their own office. Managed services technologies also gave providers the ability to make security patches and updates in a similar fashion, eliminating a majority of the reasons for onsite visits.
While the MSP model was gaining momentum, other forces were working hard to trim away the number of trips required for providers to effectively support their business clients, including:
Virtualization: This technology significant reduced the amount of servers that providers have to implement and maintain, including the related support infrastructure, such as cooling. Expect onsite maintenance requirements to continue their decline as PCs, communication equipment and other forms of hardware virtualization grow.
Hardware transformation: The desktop PC has slowly been replaced by laptops, which have subsequently been augmented or replaced by tablets and other mobility devices. Each of these hardware transitions has resulted in a plethora of new, competitive systems and a significant price decline. Now it’s often cheaper for businesses to replace than repair their computer systems.
Growth of the mobile workforce: More employees work from remote locations today. Whether their office is at home, in a secondary facility or on the road, workers are stretching the company computer systems further away from the corporate IT epicenter. This mobility revolution not only makes it more difficult to perform traditional break/fix activities, but it gives more leverage and additional revenue opportunities to recurring service providers.
Increase in collaboration: While partnering with others to provide a total solution and support package isn’t new, the tools needed to make it happen efficiently are gaining traction quickly. Programs like the Ingram Micro Services Network (IMSN) and OnForce can help providers connect with a variety of IT services specialists nationwide. That gives small or regional providers the coverage needed to support clients with offices in diverse geographic locations or that need specific expertise.
While those collective changes have laid the foundation for the next generation IT service provider, cloud solutions give them the ability to make a full business model transition. Those making the leap are being described as “virtual VARs,” which offer their business clients a full line of customizable solutions that are often sold, implemented and supported without the need for face-to-face interactions. With cloud becoming a prevalent part of small business IT infrastructure, the model creates a low-cost opportunity for up and coming IT entrepreneurs.
Some industry experts may doubt that an IT business can succeed without employees meeting prospects or clients, but one of the latest CompTIA research reports substantiates why that scenario is possible. According to the Fourth Annual Trends in Cloud Computing study, a growing number of organizations are looking to Web-based services for their data storage (59 percent), business continuity/disaster recovery (48 percent) and security (44 percent) needs. The general business communities’ acceptance of cloud solutions continues to escalate, which in turn is driving major growth of Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS). If the adoption rate of those three models continues to escalate at the same pace, it will create a perfect environment for virtual VARs to thrive.
Their portfolio could contain a variety of mobility solutions, virtualization and Web-based services, with onsite implementation and repair work outsourced to a small group of capable partners. This gives a virtual VAR the ability to focus on the most critical IT business operations, including help desk, customer services and new sales.
Brian Sherman is founder of Tech Success Communications, specializing in editorial content and consulting for the IT channel. His previous roles include chief editor at Business Solutions magazine and senior director of industry alliances with Autotask. Contact Brian at Bsherman@techsuccesscommunications.com.
