Reseller News

Resellers are becoming MSPs: CA Technologies

Software vendor finds the Cloud is pushing the channel to offer managed services.

CA Technologies is seeing more resellers in Australia become managed service providers (MSPs).

APJ partners and channel senior vice president, Darren Reid, said partners are getting out of traditional software reselling and into a service provider type model.

“That is purely driven by customer behaviour, as businesses are looking to get stuff off-premise and buying through a more utility-based model, rather than on-premise as the tradition was,” he said.

Reid said the majority of CA Technologies’ technology pricing is Software-as-a-Service (SaaS) or utility based, which may be appealing to an MSP but not as much to a traditional reseller.

“As a result, a lot of resellers are moving into being MSPs and hosting at a Cloud provider for relatively low cost,” he said.

Moving to the Cloud

Reid admits buying software from a vendor and offering it as service is challenging concept for a lot of executives in the traditional channel.

“You’re not seeing that upfront payment benefit and the revenue is spread over a longer period,” he said.

“It takes upwards of a year sometimes to make a complete transition to a more utility-based compute.”

Reid said CA Technologies has adopted a “SaaS first” strategy, and it is an approach that is making local partners realise they need to become an MSP.

While there will always be a place for traditional resellers, as some company will need on-premise technology for legislative reasons, Reid said the majority of expansion is happening in the Cloud.

Patrick Budmar covers consumer and enterprise technology breaking news for IDG Communications. Follow Patrick on Twitter at @patrick_budmar.