|
Hardware
as a Service: Part 2
Older equipment with expired warranties is more expensive!
Hardware as a Service: Are You Ready? - ' Old Equipment '
( Page 2 of 3 )
Older equipment with expired warranties is more expensive for the provider to maintain, but most customers want to
hang on to their infrastructure as long as possible, opting to fix rather than replace, said Reck. "If something
breaks, we diagnose it, and if we have to order parts, there can be downtime for the customer," he said.
In a perfect HAAS world, the provider owns all the equipment. "There's no transfer of assets," said Gartner analyst
Tiffani Bova.
And that is exactly what MSP MasterIT does. Upon engaging a client under a managed services contract, the company
buys the existing network, makes the necessary immediate upgrades and then replaces hardware as needed, said CEO
Michael Drake.
MasterIT has gone this route because the MSP, in running the network, has to make the decisions on maintenance and
replacements, Drake said.
The corporate world sees green. Click to read more.
Of course, that requires buy-in from the customer, which has an "emotional attachment" to owning the equipment,
Drake said. The trick is to convince customers that it's more important for the equipment to run smoothly than for
them to own it, he said. Should a customer decide it no longer wants MasterIT as its service provider, the contract
between them contains a buy-back clause.
Getting from A to B
For resellers interested in HAAS, there's no need to go it alone when companies such as MSP On Demand and N-able
offer education, tools and training. SilverBack
Technologies, an N-able competitor, helps its channel partners put together HAAS deals, according to Jim Hare, vice
president of business development at SilverBack. And soon, distributors Ingram Micro and Tech Data plan to have
HAAS programs and support.
Ramsey Dellinger, president of MSP On Demand, offers HaaS-In-A-Box, packaged programs designed to transform VARs to
MSPs. The company provides tools, including software, support, training and knowledge, for making the transition.
There are three program levels-Silver, Gold and Platinum-with costs ranging from $1,995 to $5,995. Dellinger's goal
is to revolutionize the way hardware is delivered.
"We provide the tools so that the reseller can offer the customer private-labeled equipment, service and support
for a monthly fee," said Dellinger.
MSP On Demand provides partners with a software-quoting tool, credit desk, branded contracts, education, help desk
for resellers and funding for the contracts.
N-able MSPs that are actively using the company's Velocity System, which the vendor bills as "an MSP business
transformation solution," can take advantage of a new partner development unit designed to help them deliver HAAS.
According to Cullen, N-able not only simplifies HAAS into a modular solution but also connects MSPs with
prequalified financial institutions that understand HAAS.
The company firmly sees HAAS as an add-on service for solution providers already familiar with managed services.
"It's easy to sell time and materials. It's harder to sell fixed fee," said Gavin Garbutt, co-founder, president
and CEO of N-able. To take on the risk and opportunity associated with fixed-fee value-based contracts, the
provider needs to understand infrastructure and proactive services models, Garbutt said.
How to finance it Once the HAAS provider understands the deliverables-hardware, SLAs (service-level agreements),
carrying costs, implementation, maintenance and support costs-the next question is financing: How do you pay for
the hardware?
For solution providers that dipped their toes into the HAAS waters early, financing has been a big challenge.
"I knew there was a leasing component to HAAS, but I thought it was a nonissue. In fact, it became our biggest
issue," said Innotek's Reck. That's because leasing companies weren't amenable to the concept, he said.
So Reck decided to dig into his own pocket to finance a few HAAS deals. "It was painful, but we were able to handle
it," he said, adding that financing deals himself is not a viable long-term business model.
Next Page: Providers try different approaches
Next: ' Different Approaches ' >>
by - eWeek
Back to
Top
Source: http://www.esp.eweek.com/c/a/Archive/Hardware-as-a-Service-Are-You-Ready/1/
|
