The channel has recognised the change in the buying patterns used by customers and is adapting. Among other things, there has been an influx of smaller managed services players (MSP), often in niches, says that latest CA Technologies Channel Index 2013. The study found that 60% of partners have become or started to become full MSPs.
Customer IT budget cuts were named as one of the biggest challenges faced by 69% of CA Technologies surveyed partners, way ahead of the 58% who cited profitability as a challenge, and the 47% who named competition.
Managed services are already being provided by partners for service management (42% of respondents), infrastructure management (41%), backup and recovery management (39%), application performance management (27%), identity and access management (22%) and project and portfolio management (20%). Over the next year, about a quarter of respondents intend to introduce each of these services (from 23% to 28% of respondents, depending on the service).
Talking to IT Europa, UK&I Sean McCarry, Senior Director, CA Technologies says: "Two priority areas for IT investment emerged from this research: enterprise mobility and cloud. Enterprise mobility is becoming increasingly more widespread, providing customers and employees with new and convenient ways of accessing enterprise applications. With this comes added complexity to the IT environment and new challenges to manage and keep the IT environment secure. There is budget there in customers, perhaps in other areas, and for the right patners, there is a good opportunity."
He was already seeing an influx of new MSPs, and CA Technologies had set up a "Centre of Excellence" to get them enabled. Distribution too had a role with the smaller resellers. It was necessary for the smaller channels to build every service they sell. And, he added, the pricing and margin in the specialist areas was often much better for the channel than that offered by the giant MSPs. "The mid-market is all about value in the channel. Smaller MSPs do well in countries and regions, where they can take the fear out of trends and provide usable services. SaaS allows much smaller MSPs to come in with no cpaital investment; we are seeing a lot of new ones , usually very focused."
The index revealed that 83% of CA Technologies partners in EMEA expect to see increased spending on enterprise mobility over the next year and almost all (93%) recognise that the rapid adoption of mobility creates opportunities to help grow their business. Among UK partners, this figure rose to 95%. Nearly two thirds (66%) of the partners surveyed predicted an increase in cloud computing spending over the next year. In the UK, a significant 81% of partners expected increases. The UK is ahead of the rest of Europe on the MSP side, says Sean McCarry. The UK is following the trend in the US, where companies face having lots of data and often the first way in for a partner is back-up, he says. This can prove the success of the model and other services can be wrapped around it.