VARs rethinking services
Last month, Microsoft CEO Steve Ballmer told channel partners to get with the program and focus on Software-as-a-Service, in particular, Microsoft's own new version of Software-as-a-Service called "Software Plus Services." It won't be an easy shift for a lot of VARs and integrators, but Microsoft's call to action was right on the money.
A news report highlights a case in point with Bluewolf, a Salesforce.com partner, which is launching a new SaaS support program designed to cover all Salesforce.com hosted apps, wehther they are developed by Bluewolf or not. An excellent strategy for Bluewolf, which other channel partners may wish to emulate. Support and services will be an important part of the move to SaaS, and the service business is expected to be a growing part of the channel mix.
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Many VARs are still doing
Many VARs are still doing very well by focusing on providing soup-to-nuts outsourced virtual IT services for local small businesses. It may not be as "sexy" as "managed services" or SAAS. But for small VARs ($250K-$1M), a monthly service agreement for taking on small business virtual IT manager/virtual CIO responsibilities still maintains VERY high margins and account control. The moment you start selling to a small business that doesn't need or value face-time, watch out for low-cost offshoring.