ThreatTrack Security Inc. on Wednesday unveiled a new  partner program specifically for those SMB partners representing its VIPRE  endpoint security product. The VIPRE Partner Program has more aggressive  margins, three partner tiers and new dedicated channel employees.
The VIPRE program represents a new channel program for Clearwater,  Fla.-based ThreatTrack, which previously lumped its VIPRE-selling partners  within an umbrella partner program that also covers higher-end advanced threat  solutions for enterprise and federal government customers, according to the  company. 
At the beginning of this calendar year, ThreatTrack began an  effort spearheaded by Chief Revenue Officer Jason Greenwood to expand its base  of about 4,000 VIPRE-focused partners and to empower existing partners to  increase their revenues within the SMB market.
A key enhancement is a major bump in partner discounts.  Previously, VIPRE partners could get a base discount of 15 percent and an  additional 12 points for deal registration. Under the program announced  Wednesday, partners of any of the program tiers can get a 25 percent discount  and can double that discount to 50 percent through qualified deal registration  for opportunities of more than 50 seats.
"We've matched the industry's highest-rated endpoint  security solution with one of the channel's most aggressive discount strategies  and profit-accelerating programs to give our partners a tremendous advantage in  the market," Greenwood said in a statement.
The three tiers of the VIPRE program are Authorized,  Certified and Expert. Partners registered at the Authorized level gain access  to self-service materials. Partners selling at least $20,000 worth of VIPRE  solutions annually can join a Certified level, which includes quarterly  business reviews and access to new channel employees handling account  management and pre-sales engineering support. Partners bringing in $100,000 in  VIPRE sales qualify for the Expert tier, which includes customized collateral  materials to help with marketing and lead generation.
 
	Posted by Scott Bekker on February 08, 20170 comments
          
	
 
            
                
                
 
    
    
	
    Acronis is refreshing its comprehensive backup suite,  Acronis Backup 12, with support for Microsoft Office 365 backups and some new  VMware-related functionality.
The Office 365 backup is the main element of the new release and addresses a market opening that backup and recovery vendors have been scrambling  over one another to fill. In fact, Acronis itself released a point solution  addressing Office 365 backups in its Acronis Backup Cloud product in  July as part of a cloud-first approach to product releases. 
The new release brings the full power of the Acronis Backup  solution for small businesses to Office 365, says Frank Jablonski, vice  president of global product marketing and communications at Acronis.
"The key point here is that everything is being done  from one solution for you," Jablonski says of the Acronis hybrid cloud  architecture for managing and executing backups, synchronization and archiving  on more than a dozen platforms, spanning most Microsoft technologies, some  Linux, Macs, iOS and Android devices and several cloud providers. Bringing the  technology into the Acronis Backup 12 solution means organizations can now  manage their Office 365 backups to other clouds or to on-premise targets from  the same Web-based console where they run all their other backup management  tasks.
Functions that Acronis Backup 12 provides for Office 365  include the ability to back up e-mails, contacts, calendars, tasks and  attachments; choose local or cloud backup targets; bring Office 365 files into  compliance with organizational archiving policies; preview, browse and search  Office 365 content; 
  recover mailboxes to the original or an alternative  location; and recover individual e-mails by delivering them as an e-mail.
Jablonski  said heuristic, anti-ransomware protection will be added to the Office 365  backup capabilities later this half.
Also in the refresh of Acronis Backup 12, the company added  support for VMware vSphere 6.5, among other VMware-related improvements.
 
	Posted by Scott Bekker on February 08, 20170 comments
          
	
 
            
                
                
 
    
    
	
    Google's recent legal setback requiring the cloud giant to  hand over customer e-mails stored on servers outside the United States suggests  that the U.S. Department of Justice will fight a recent decision by a higher  federal court in a similar case involving Microsoft and its datacenter in  Ireland.
In the Microsoft case, the U.S. Court of Appeals for the 2nd  Circuit, in New York City, in late January declined to re-hear a case in which the  Appeals Court previously ruled that Microsoft did not have to turn over e-mails that the government demanded that were stored in Microsoft's datacenter facilities  in Ireland. 
Conversely, on Friday in the U.S. District Court for the  Eastern District of Pennsylvania, Magistrate Judge Thomas J. Rueter ordered  Google to comply with search warrants and turn over to the FBI customer e-mails that were stored abroad.
"Although the new decision is only a single opinion by  a single magistrate judge, the decision shows that the Justice Department is  asking judges outside the Second Circuit to reject the Second Circuit's ruling  -- and that at least one judge has agreed," wrote Orin Kerr, a professor at The  George Washington University Law School,  in a blog  post for The Washington Post after the Google decision on Friday.
Rueter did acknowledge the 2nd Circuit ruling in his decision  but ultimately ruled against Google. One key difference between the cases  involved the way Microsoft and Google stored the data. The e-mails in question  in the Microsoft case were exclusively stored in Ireland and were there for  some time. The data that Google had refused to turn over had been partitioned  so that portions were stored in the United States, while others landed in  datacenters in different countries.
The cases are complicated, and hinge on the Stored  Communications Act (SCA), the Fourth Amendment of the Constitution, Mutual  Legal Assistance Treaties (MLAT) and many other factors.
The importance of the issues involved to the U.S. government  and to U.S.-based tech companies with global business interests virtually  guarantees that the fight will continue.
As Kerr nicely summarized the interests at stake in an  earlier blog  post about a previous twist in the Microsoft case: "For Microsoft, it  is thought that lots of European business may hinge on the outcome. In the  post-Snowden world, many Europeans are very concerned about the risk of U.S.  spying on foreign communications. U.S. government access to foreign e-mail  accounts is a sensitive question. ... And it's easy to see why it matters to [the]  Justice Department. A U.S. provider can easily put the e-mail of U.S. customers  on a server abroad. If doing so would place the e-mail outside the reach of a  U.S. warrant, then U.S. providers could readily thwart U.S. search warrants in  domestic cases by putting their servers in places where alternative legal  process would be spotty or unworkable."
In short, these questions aren't settled. Look for new  legislation from Congress, a continuing push by the DoJ to develop dueling  federal court rulings or for the U.S. Supreme Court to eventually take up one  of the cases.
 
	Posted by Scott Bekker on February 06, 20170 comments
          
	
 
            
                
                
 
    
    
	
    A lengthy and well-run beta testing program that culminated  this week in the latest release of Kaseya's remote monitoring and management  (RMM) product, VSA 9.4, is evidence of the company's newfound focus, says one  longtime partner.
"The mojo has completely changed with different  management and a renewed focus on customer feedback, and on the whole feedback  loop of 'We have this issue,' and they're truly putting their money where their  mouth is," said Chris Banta, director of security and automation for Alpharetta,  Ga.-based Safe Systems Inc., which provides IT services for community banks. 
Safe Systems, which has been a Kaseya partner for 10 years  and belongs to the company's Partner Success Council, has been kicking the  tires of the beta for a while. "This is the highest-quality release that we've  seen from coding and certainly the most collaborative release, as well,"  Banta said.
A Kaseya spokesperson confirmed that the four-month beta  testing timeframe for version 9.4 was the longest beta testing period the  company has held for a VSA release.
When he took  over as Kaseya CEO a year and a half ago, Fred Voccola promised to focus on making  the products powerful, easy to use and scalable. "It's demonstrating the  continued commitment to shut up and listen to our customers," Voccola said  in a telephone interview about the latest release. "It's the fourth  release that we've had where we've met all of our commitments."
Key enhancements for 9.4 center on look and feel, which were  overdue for refurbishment, as well as more cross-platform support for macOS  and Linux. Company executives say the process of discovering devices on a  network is much faster and more powerful in the current release, helping MSPs  make a strong impression in presales engagements. Another focus was on  proactive alerting and automations to allow MSPs to cover more endpoints with  the same number of technicians. Meanwhile, Kaseya is also continuing to put  pricing pressure on competitors, this time on the cloud backup front,  executives say.
For Banta, the changes are welcome. "There's this huge,  old culture of bashing Kaseya," he said. "We're seeing the culture  shift at conferences."
 
	Posted by Scott Bekker on January 26, 20170 comments
          
	
 
            
                
                
 
    
    
	
    As the new year begins, Microsoft is quietly increasing its  focus within the partner channel on its ISV community.
Gavriella Schuster, the corporate vice president of the Microsoft  Worldwide Partner Group (WPG), telegraphed the shift in a December "State of the  Channel" briefing with channel media. 
Her comments were focused on partners developing  intellectual property (IP), which in most cases means that they are writing code,  but can apply to business models or vertical expertise.
"We continue to invest heavily in helping IP services  develop within our partner ecosystem, so we're focused on partners of all types  actually who are interested in building out IP and creating new and differentiated  services offerings. We've seen a tremendous groundswell, both within a  traditional ISV channel, as well as within many of our systems integrators and  a lot of the consolidation activity that you've probably noticed in the partner  ecosystem, as well, where even some traditional resellers are acquiring  organizations that have some IP services," Schuster said.
The next part was the kicker that should make infrastructure  partners and straight resellers sit up and take notice that things may be changing.
"At the end of the day, I believe that within a year,  the majority of our partners will be delivering some sort of value-added  differentiation and IP services on top of the technology stack in some way to  deliver more value to their customer," Schuster said.
Microsoft's Chief Evangelist, Steve Guggenheimer, made a related  point in a separate conversation. Discussing the opportunity areas for  Microsoft partners this year, Guggenheimer said the best was for partners to  build vertical solutions for their customers built on Azure.
The most compelling piece of evidence about the shifting  focus to ISV partners is the retooling of the partner organization that will  take place on Feb. 1. Mary Jo Foley reported the changes on her All About Microsoft site in early January. Microsoft hasn't  separately announced them, but a spokesperson has confirmed that Foley's report  was correct.
The changes reach across Executive Vice President Judson  Althoff's Worldwide Commercial Business Group, but the changes within the  partner community indicate a clear shift to putting developer partners first.  Previously, worldwide partner policy was coordinated in many places but  primarily and most visibly out of Schuster's office in the WPG. Schuster  reported to the head of Worldwide SMS&P, Vahe Torossian, who had broader  business responsibilities in his portfolio than partners. Now Schuster, as well  as the head of the Enterprise Partner Team, Victor Morales, and Kim Akers, who  runs an ISV team, are part of a new One Commercial Partner business. That unit  is run by Ron Huddleston, corporate vice president of the Enterprise Partner  Ecosystem for Microsoft.
As Foley points out, Huddleston came to Microsoft last June  from Salesforce.com, where he was instrumental in creating the AppExchange  marketplace and the rest of Salesforce.com's channel. Microsoft has long sought to  match the power of Salesforce.com's AppExchange and Huddleston's arrival is seen as  a renewed effort by Microsoft to bring that engine to Azure and its other cloud  products.
In summary, Althoff has put the Microsoft WPG inside a business unit run by a new executive with a channel title who  also has experience building a vibrant ISV partner community.
Altogether, partners who can help utilize more of Azure's  built-out capacity can expect to be showered with the most love from Microsoft  in 2017.
 
	Posted by Scott Bekker on January 23, 20170 comments
          
	
 
            
                
                
 
    
    
	
    With an eye on the innovation that's happening among the  HPE, Nutanix and Dell-EMCs of the world in converged storage, StorageCraft Technology  Corp. on Thursday announced the acquisition of Exablox Corp.
"There's a lot of innovation happening in storage. What  we think is there has to be a lot of innovation in the business continuity and  backup and recovery side of that. What we're getting into is intelligent  business continuity," said Marvin Blough, vice president of worldwide sales at  StorageCraft,  in a telephone interview. 
StorageCraft has become focused on aggressive growth since  getting a new chairman and CEO in Matt Medeiros, who arrived  a year ago alongside a $187 million private equity investment in the  Draper, Utah-based company. Medeiros has said he wants to take the company from  the $100 million revenue range to the $500 million revenue range over the next  few years.
The acquisition of Sunnyvale, Calif.-based Exablox for an  undisclosed sum follows the purchase of Gillware Online Backup, a data backup  company specializing in prioritizing backups. Unlike Gillware, the Exablox  acquisition moves the SMB-focused StorageCraft upmarket into the midmarket  space.
Exablox offers integrated hardware and software for inline  deduplication, continuous data protection and disaster recovery. The company's  vertical strengths include higher education, insurance and legal.
According to a StorageCraft statement describing Exablox,  the company brings together "a new approach that recognizes the  disappearing lines between primary and secondary storage as well as between  data availability and data protection."
Although the acquisition brings StorageCraft into the  hardware business, Blough said StorageCraft won't be coming into competition  with its many hardware partners on SMB-focused disaster recovery and business  continuity packages.
"We don't want to go compete with guys that are taking  our product and combining it with their product [to make an] end-user,  on-premise unit. This is going to be an intelligent solution that's aimed at  midsize customers or datacenter offerings for partners. The intent is not to  build a small inexpensive unit that we go compete with our partners with,"  Blough said.
StorageCraft has about 3,000 partners transacting each  quarter, while Exablox has a few hundred, Blough said. For now, the plan is for  both Exablox and StorageCraft to continue to function independently, with a  product integration roadmap that the companies describe as "aggressive"  to be shared later. Douglas Brockett will continue as Exablox president,  reporting to Medeiros.
 
	Posted by Scott Bekker on January 19, 20170 comments
          
	
 
            
                
                
 
    
    
	
    Looking at two recent security studies together, one thing  stands out. End users expect Web sites to keep their accounts secure, but they  are overwhelmingly unwilling to help defend themselves by logging in with  decent passwords.
The new data comes from an analysis by Keeper Security of 10  million passwords that were newly exposed through data breaches in 2016 and  from a large-scale international survey conducted by Gemalto. 
The Gemalto survey of 9,000 consumers shows that users are  appropriately wary about their security. Nearly 60 percent believed social  media networks posed a great risk, more than a third thought online or mobile  banking left them vulnerable to cybercriminals, and nearly 60 percent believed  they'd be the victim of a breach at some point.
Yet when it comes down to responsibility for protecting and  securing customer data, respondents said 70 percent of the responsibility lies  with the company and 30 percent lies with themselves.
The Keeper Security analysis of passwords revealed in 2016  completely confirms that the attitudes that emerged in that survey are backed  up by real end-user behavior. The most popular passwords were jaw-droppingly horrible  after years of media attention to passwords, data breaches and security  problems. The top five were: 
  - 123456
- 123456789
- qwerty
- 12345678
- 111111
"Looking at the list of 2016's most common passwords,  we couldn't stop shaking our heads. Nearly 17 percent of users are safeguarding  their accounts with '123456,'"  wrote Darren Guccione, co-founder and CEO of  Keeper Security,  in a blog post about the results. The top 25 most common  passwords accounted for more than 50 percent of the passwords in the breaches.
Like the users in the Gemalto survey, the companies behind both  surveys fault the Web sites more than the end users for the problems.
"We can criticize all we want about the chronic failure  of users to employ strong passwords. After all, it's in the user's best  interests to do so. But the bigger responsibility lies with website owners who  fail to enforce the most basic password complexity policies. It isn't hard to  do, but the list make it clear that many still don't bother," Guccione  wrote.
There's certainly something to blaming the Web site companies.  First, they know better. Second, when attackers sweep up millions of passwords  in a big breach, they get the great passwords along with the crappy ones. But  just because a company isn't doing what is necessary to protect you, is no  reason not to defend your own account at all. It's like arguing that because it's  a country's responsibility to field an army to defend the borders against  foreign invaders, individuals don't need to lock their doors against local  burglars.
These new studies underscore that if part of your business  involves securing customers' environments, relying on their end users in any  way to secure their own accounts with voluntarily strong passwords is an  enormous mistake.
 
	Posted by Scott Bekker on January 18, 20170 comments
          
	
 
            
                
                
 
    
    
	
    Microsoft this week padded its selection of massively open  online courses (MOOCs) focusing on the Azure public cloud technology stack.
The free Azure courses, which are supposed to take from four  to 18 hours to complete, were first unveiled in early December by Gavriella Schuster, the corporate vice president of the  Microsoft Worldwide Partner Group. While not aimed exclusively at partners, the  courses on OpenEdx, which itself runs on Azure, give partners an inexpensive  way to skill up on a technology area that Microsoft is pushing hard and hoping  to grow fast. 
While announcing the rollout of the first slate of six  courses last month, Schuster said another six courses would be arriving in the  next few weeks, with more education investments coming throughout 2017.
Eduardo Kassner, CTO of the Microsoft Worldwide Partner  Group, unveiled five of those new courses in a blog  post on Wednesday. They are Managing Azure Workloads, Automating Azure  Workloads, Azure App Service, Databases in Azure, and Azure Security and  Compliance.
Kassner said more courses are also in the works, including  one on Application Deployment and Management.
The original six courses launched in December were Azure  Fundamentals, Azure for AWS Experts, Azure Virtual Machines, Azure Virtual Networks,  Azure Identity, and Azure Storage. 
 
	Posted by Scott Bekker on January 12, 20170 comments
          
	
 
            
                
                
 
    
    
	
    It's the start of a new year; it must be time for MSP  resource reports. This week, two MSP tools vendors released reports designed to  help MSPs, both their current partners and, of course, other MSPs that they  hope to attract to their platforms.
Kaseya issued its sixth annual MSP pricing survey, a  data-rich, 21-page resource for any MSP wrestling with finding the right way to  price their services. 
This time Kaseya got fourth-quarter 2016 responses from 920  MSPs, more than twice as many respondents as last year. They came in from 50  countries, and some of the queries are broken out across three broad regions --  North America, EMEA and Asia-Pac -- making it possible to do some very rough apples-to-apples comparisons by geography.
Kaseya highlighted overall growth across the market. The  company says 26 percent of respondents reported their average monthly recurring  revenue (MRR) growth over the last three years is more than 15 percent. That's up  a few points from the 23 percent who reported growth at that level last year.
Getting down to brass tacks on pricing, the largest group of  respondents (39 percent) picked "up to $125" for their average charge  for ongoing server support and maintenance per month per device. The average  size of monthly managed services contracts was going up. In 2015, the most  common range was the $1,001-$2,500 -- selected by 35 percent of respondents.  That's still the most popular in 2016, with 37 percent of respondents picking  that range. 
But the lower range of up to $1,000 dropped in 2016 from 34 percent  to 23 percent, meaning way more respondents had raised their rates. One big  gainer was the $2,501-$5,000 range, which went from 19 percent of respondents  to 22 percent of respondents.
The top 10 services offered by the highest-growth partners  were (in descending order) backup and recovery (either cloud or onsite), server  support, network and connectivity support, desktop support, service desk, desktop  security, remote monitoring, cloud services (IaaS, PaaS, SaaS), hosting services  on MSP-owned equipment, and enhanced network performance monitoring.
Although one piece of advice that regularly comes to MSPs is  to not spread yourself too thin, Kaseya reported that the highest-growth MSPs were  adding complexity -- adding services, tiers and more to their practices.
The full report is available here.
Also this week, Continuum released "Scaling for  Success: The MSP Guide to Operational Efficiency." Partly a pitch for the  Continuum platform, the 27-page guide also includes recommendations and  organizational charts for re-orienting an MSP practice around an outsourced  network operations center. The Continuum guide is here.
 
	Posted by Scott Bekker on January 11, 20170 comments
          
	
 
            
                
                
 
    
    
	
    While Internet of Things integrations and putting personal  assistant technologies into cars or desktop robots dominated the CES headlines  out of Las Vegas this week, there were plenty of interesting new systems and  gadgets for businesses running Windows 10.
The category of two-in-one detachables that start as a PC,  where the screen can be taken off to make a tablet, saw a few more entries this  week. The most interesting is the Dell Latitude 7285, which is moving the ball  forward with a wireless charging capability. 
 Dell Latitude 7285
  Dell Latitude 7285  
It's a bit of a wait, with availability set for the summer  and pricing to be revealed during Dell EMC World in May. The 12-inch Latitude  7285 will use WiTricity magnetic resonance wireless charging. Dependencies for  full functionality will include a charging mat and a WiGig wireless dock. The  appeal will be the ability to remove the device without unplugging anything and  return to work at the desk with content appearing on external displays without  plugging anything back in.
Another new offering in the category of detachables modeled  after the Microsoft Surface is the latest rev of the Lenovo Miix. In April,  Lenovo will make available the Miix 720, which will start at $1,000, a price  that includes the keyboard but may not include the Lenovo Active Pen 2,  depending on geography. The new detachable comes in champagne (as shown below) or iron-gray and,  like many of the new machines on display at CES this year, includes a USB  Type-C port, in this case Thunderbolt 3. 
 Lenovo Miix 720
  Lenovo Miix 720 
Heavy-duty workstations have their place at this year's show,  too. With all the attention on augmented, mixed and virtual reality, Dell is  positioning a new laptop as its first VR-ready mobile workstation. The  Precision 7720 is designed for VR content creation with power from 7th-Gen  Intel Core and Intel Xeon processors and NVIDIA Pascal Quadro graphics. The  U.S. starting price is $1,700.
 Dell Precision 7720
  Dell Precision 7720 
Another forthcoming Dell system is aimed at the Windows 10  Creators Update. By the end of this quarter, Dell will start taking orders for  the Dell Canvas, a 27-inch QHD smart workspace supporting touch, digital pen  and totems or dials. Pricing in the United States starts at $1,800.
 Dell Canvas
  Dell Canvas 
HP is also pushing forward in this area, where form factors  are changing rapidly to accommodate or encourage new work styles. HP displayed  its second-generation Sprout Pro, which features an HD resolution projector, a  touch mat that's also a secondary horizontal display, and 2-D/3-D cameras. Top  updates are a faster Intel Core i7 processor, 1TB of SSHD storage, up to 16GB  of RAM and NVIDIA GeForce GTX 960M graphics. The systems will be available in  some countries starting in March, with pricing to be announced later.
 HP Sprout Pro
  HP Sprout Pro 
For more standard laptops, the 360-degree hinges popularized  by the Lenovo Yoga line seem to be winning the design battle. Lenovo is out with another Yoga for professionals, the  Lenovo ThinkPad X1 Yoga. The 14-inch metallic silver notebook has an OLED  screen, a rechargeable pen and a next generation of Lenovo's "rise and  fall" keyboard. The ThinkPad X1 Yoga is available next month starting at  $1,500.
 Lenovo ThinkPad X1 Yoga
  Lenovo ThinkPad X1 Yoga 
Dell is bringing the 360-degree hinge party to its popular  XPS 13 line this year. The company is claiming 15 hours of battery life for the  new XPS 13, which includes Dell's InfinityEdge, 5.7-million-pixel touch  display, a fanless design and all USB Type-C ports to help keep the profile slim. The  system is available from Dell.com and Best Buy in the United States for $1,000  and up.
 Dell XPS 13
  Dell XPS 13 
Toshiba is billing its new Toshiba Portégé X20W two-in-one,  with a 360-degree hinge, as a premium Windows 10 Pro system. Distribution will  vary by color. A slate-gray version will be available exclusively from  MicrosoftStore.com and in Microsoft Stores. An onyx-blue version will be  available at the end of the month from Toshiba's Web site and later from other  resellers. Among the laptop's impressive specs are a 15.4mm thickness, a weight  of less than 2.5 pounds and a claimed battery life of 16 hours.
 Toshiba Portégé X20W
  Toshiba Portégé X20W 
HP is following up on its arresting brown and gold HP  Spectre x360 line with a higher-powered second-generation system. The 15.6-inch  screen sports 4K resolution, while battery improvements allow the machine to  run for up to 12 hours, HP claims. Refreshes on the processor from Intel,  graphics from NVIDIA and speakers from Bang & Olufsen undergird this  update. Preorders are already available at prices starting at $1,500.
 HP Spectre x360
  HP Spectre x360 
Later this month, HP will release a refresh of its slender  HP EliteBook x360. The 14.9mm thick convertible features a 13.3-inch display,  an IR camera and a stated battery life of 16 hours and 30 minutes.
 HP EliteBook 360
  HP EliteBook 360
In the thin and light category, LG Electronics previewed a  few clamshell designs for release later in the year. Dubbed LG Gram, the laptops  come in three screen sizes -- 13.3-inch, 14-inch and 15.6-inch. The two  smaller-screen models weigh in at about 2.1 pounds, while the bigger screen  version is only 2.4 pounds. 
  LG Gram
  LG Gram 
Among the thousands of different devices on display at CES,  one stood out for business users on the go. Kingston Digital Inc. unveiled an  enormous USB flash drive. The DataTraveler Ultimate Generation Terabyte offers  up to 2TB of storage space. It doubles the capacity that Kingston came out with  in 2013. 
 Kingston DataTraveler Ultimate GT USB flash drives
  Kingston DataTraveler Ultimate GT USB flash drives 
According to a storage chart provided by Kingston, the huge little  drive could hold 166 HD movies (.MKV) or 1,792 compressed .MP4 movies. It sports  USB 3.1 Gen 1 to exchange all that data with a PC as quickly as possible.
 
	Posted by Scott Bekker on January 06, 20170 comments
          
	
 
            
                
                
 
    
    
	
    One of the first MSP mergers of the year involves two trends  that are expected to be big in M&A in 2017 -- vertically oriented intellectual  property (IP) and using the cloud to scale.
Kite Technology Group, based in Owings Mill, Md., closed a  deal effective this week to acquire AIS Technology LLC, based in Germantown,  Wis. Terms of the merger weren't disclosed, but the MSP operations will  continue as Kite Technology Group. AIS Owner and President Nick Oliver joins  Kite as executive vice president and will be a part owner of the 26-employee combined  company, along with current Kite CEO Greg DiDio and Kite Technology Founder  Jeff Kite. 
Both companies have a long-standing focus of providing MSP  services to insurance agencies but bring very different business models to that  particular vertical.
"Nick focused primarily on the insurance vertical  market and a remote service plan," Kite said in an interview Wednesday.  That low-touch approach and his high profile at the national insurance agent  conferences both Kite and Oliver attend (and where they met in the early 2000s)  have resulted in AIS having customers in 22 states, Kite said.
Kite Technology has taken a more high-touch,  white-glove experience approach and has also accepted referrals, resulting in  about 45 percent of the former Kite Technology's business being non-insurance  agency clients, he said. "Because we were interested in both insurance and  non-insurance clients, that sort of led us to focus geographically, so the  Mid-Atlantic has been our base," Kite said. "Most of our clients are  within a one-hour reach, but we have some Long Island, and northern New Jersey  and a lot of central Pennsylvania, down the Delaware corridor."
While AIS has the remote-services approach, Kite says the  firm he founded 24 years ago has been building infrastructure that could take  AIS' services to the next level.
"What we brought to the deal was [this.] Through our  involvement in HTG for eight years  now, and Connectwise building best practices -- all of that whole HTG way, if  you will -- we have grown our company 22 percent per year average over the last  six years. We've done a really good job on operational maturity, and we have  the ability to scale our operation. Nick has the reach and the national  footprint. We think we can each bring that together and do a much better job of  serving clients in a much broader base."
Among those resources poised to help the whole operation  grow is an already segmented help desk operation. Kite's corner office sits  between the I-Team, which is focused on insurance-industry clients, and, he  jokes for want of a different letter rather than a marker of priority, an  A-Team focused on non-vertical clients.
As every solution provider with a strong vertical business  must, Kite Technology will need to address anew the question of how strongly to  prioritize its vertical business versus other types of customers.
"We actually have a sales summit planned for two weeks  from now. We are going to do a two-day deep dive where we're going to look very  closely at where do we take this now that we're all together," Kite said. "I  can tell you that my intention is to maintain a dual-pronged strategy, where  within our geographically reachable market, to me that's a comfort zone of one  to two hours, I'm comfortable serving clients outside of our insurance vertical  niche. I believe that we're going to continue to reach clients and grow that  business. And I know for sure that we are going to be intentional about  expanding what Nick has done in that remote-only-type service model to an even  broader national market."
Meanwhile, as many channel executives predict that IP will  become even more important for the tech channel in the year ahead, the Kite-AIS business is an example that IP isn't just for coding ISVs.
"It's much more than an IT understanding of the  insurance agency," Kite said when asked about the company's core IP. "We  also provide consulting. We have, I think, six staff now who have been  full-time employed inside an insurance agency. We know what it takes,  understand the complexities."
Keys are knowing how insurance agency employees live in the  browser and the big insurance company Web pages and knowing the peculiarities  and browser versions or settings that make each site work best, as well as helping  clients navigate support for the crucial line-of-business applications like AMS360,  Applied TAM and Applied Epic.
As the Kite-AIS deal just a few days into 2017 demonstrates,  combining vertical expertise and spinning up a strong cloud/remote support  model is one way that growing MSPs will be grabbing for the brass ring of  national scale in 2017.
 
	Posted by Scott Bekker on January 04, 20170 comments
          
	
 
            
                
                
 
    
    
	
    E3 is the "hero SKU" for Office 365, Microsoft's  top Office marketing executive told financial analysts this month, but the  company's long-term vision focuses on the newer and more comprehensive E5 SKU.
In a Barclays Global Technology Conference call, Kirk  Koenigsbauer, corporate vice president of Office Marketing, described Microsoft's  Office 365 business strategy as being about two things -- expanding "sockets,"  Microsoft parlance for seats of Office 365 that give the company a beachhead at  a customer site, and increasing "ARPU," the abbreviation for average  revenue per user that company executives regularly use as shorthand for  upselling Office 365 seats with higher-end cloud services. 
Koenigsbauer described the socket-expansion part of the business  as moving from a phase one, focused on moving existing on-premises Exchange and  Office client customers to the cloud, into a phase two aimed at broadening  Office 365's customer base.
"With Office 365, of course there is more on-prem to  cloud that we feel like we have to go through, but we also feel like...opportunities in emerging markets, opportunities in small business,  opportunities serving customers we've not served before, [such as] the  deskless-oriented workers. We think there is a big opportunity for us to expand  our socket base," Koenigsbauer said according to a Seeking  Alpha transcript of the Dec. 7 call.
But the E3 SKU, which adds the Office client rights in a  per-user model along with more collaboration value than the baseline E1  package, helped drive the current mix of premium Office 365 SKUs to about 60  percent, Koenigsbauer said.
"Right now, let's say E3 is our hero SKU. It's the one  we lead with the most," he said, crediting E3 for much of the ARPU increase  for Microsoft over the last two years.
ARPU efforts over the next few years center on "selling  the long-term vision around E5" and the year-old SKU's three core  components of security, analytics and voice services, Koenigsbauer told the  analysts.
"The one that's...getting the most amount of attention  from customers right now, not surprisingly, is security," he said.
 
	Posted by Scott Bekker on December 14, 20160 comments