Jamcracker Eases VAR Path to Managed Services
MSP model gains momentum with LaunchPad, a product that provides a fully integrated solution for MSPs, including a wide catalog of sometimes competing applications and the necessary front-end/back-end delivery infrastructure.
The Managed Services Provider (MSP) model is very attractive for traditional VARs burned out from selling low-margin products, doing one-off projects and receiving unpredictable revenue from break-fix maintenance gigs. The chief lures of being an MSP are high margins, recurring revenue, strong differentiation, strong account control, and the low cost of acquiring new accounts.
Often, however, VARs are unprepared for the reality of switching roles. Many lack the business expertise and technology infrastructure to move from a manual to an automated service delivery model.
To prepare VARs to become MSPs and handle the operational and administrative complexities of running and growing an MSP business, Jamcracker recently unveiled MSP LaunchPad. The initiative combines a wide choice of on-demand applications, back-office/front-office infrastructure services, on-demand technical support services, and access to pre-negotiated distribution agreements with dozens of on-demand providers, including Cisco, IBM, McAfee and Microsoft.
MSP LaunchPad will enable VARs to begin selling and delivering managed services without having to deploy their own remote management tools, provisioning, subscription billing and administration systems, or staffing a help desk call center, said Steve Crawford, vice president of marketing at Santa Clara, Calif.-based Jamcracker, a provider of on-demand services.
Jamcrackers initiative follows on the heels of a recent study released by Ovum Research and commissioned by Cisco which projects that the global market for four managed services (metro Ethernet, IP VPNs, IP voice, and security) is growing at a compound annual growth rate of 18 percent. Ovum forecasts that the market will be worth $66 billion by 2012.
While MSP LaunchPad is mainly designed to help VARs make the migration from license sales to managed services, Crawford said it is also a good choice for existing MSPs that want to expand their service offerings and automate front/back office functions to scale operations as their business grows.
MSP LaunchPad is fully integrated with the Jamcracker Service Delivery Network (JSDN), which provides backbone services along with MSP-branded business administration tools.
Through partnerships with other MSP providers such as MSP Warehouse and Do IT Smarter, Jamcracker allows MSPs to choose from Kaseya and Level Platforms, leading remote desktop and IT monitoring/management platforms.
Jamcrackers LaunchPad will allow us to extend our reach to a larger VAR community, said Lane Smith, president of Do IT Smarter, a San Diego-based master MSP that offers VARs a low-risk, pay-as-you-go MSP program that incorporates key services such as remote monitoring, enterprise help desk, email and internet security, and remote backup.
The value-add of LaunchPad is that it delivers a fully integrated solution for providing managed services a wide catalog of sometimes competing applications and the front-end/back-end delivery infrastructure, said Smith.