Discussing The Details Of An MSP Partner Program & The Difference Between Value Added Reseller And MSP Reseller
MSP Partner Program is essentially a provider of processes that otherwise would have been done in-house.
A Managed Service Provider is a vendor who provides a client a set of services as per a contractual agreement. It is done to enhance the organization’s productivity and protect it from unnecessary burdens with extra costs and responsibilities. As technology progresses, there is also a rise in the number of MSPs. The market is expanding rapidly as a wide array of organizations have begun to provide various services. It ranges from specific software to anti-phishing solutions and 24×7 call centers to data center management.
All these collaborations are contractual, and the MSP acts as a specialized vendor for particular roles. An organization’s most significant advantage by employing an MSP is that it can focus on its core responsibilities and use all resources to improve on them. Given the vast market and the numerous jobs and services at hand, there are notably two types of Managed Service Providers
- Value Added Reseller
- MSP Reseller
What Is A Value Added Reseller
A Value Added Reseller or VAR is an organization or a business line dealing with software and hardware that integrates features and products into the existing IT Infrastructure. They do so for the sole purpose of ability enhancement and assisting the existing IT infrastructure of a growing or a potentially growing business. They sell or lease these products as complete services or as time-based subscriptions.
As the name suggests, the business model’s secret is adding value to an existing product and making it more potent. These additions may be incremental or a leap and depend on the market demands. For instance, SaaS development is one prime example of Value Added Reselling. In this reselling model, vendors add new functionalities and features to existing products and offer them full-scope services.
The key to becoming a successful Value-added Reseller is to understand the meaning of ‘value’. One of the pitfalls of running this business is failing to understand the real meaning of the term. A Value-added Reseller can only be effective if the product serves its real purpose and adds value to the existing IT infrastructure, and makes it more valuable for the client.
What Can MSP Services Offer?
A Managed Services Provider or MSP is responsible for providing niche services. These services may or may not be available with the client but have been outsourced to a collaborator. A Managed Service Provider manages services, especially IT ones, for a recurring fee. However, many MSPs manage non-IT services, like Human Resources, Payroll, Accounts, etc. However, the most significant influence of MSPs has been in the domain of Information Technology.
With rising complexity and numerous responsibilities, larger organizations dealing with diverse business lines will find it challenging to deal with technicalities. Building an in-house department may add to the costs, and given the price-sensitive market and roaring competition, it is an avoidable activity. To overcome such a situation, they would want a specialist collaborator who will take care of the organization’s needs at a fraction of its cost.
Some of the services that a Managed Service Provider provides are:
- Data Centre Management, which also includes hosting the various websites of the client.
- Integration services including integrating the existing IT Infrastructure with numerous third-party solutions.
- Maintaining the entire IT Infrastructure, which includes all third-party solutions and proprietary ones.
- Network Management
- Application Management
- Infrastructure Engineering and Management
- IT Security including Phishing Protection, Ransomware Protection, Malware Protection, and Email Management.
However, with specialization being the flavor of the times, organizations, at any given time, collaborate with numerous MSP partners, each looking after a dedicated faculty. It again has got to do with the increased complexity of services.
Value Added Reseller Or MSP Reseller?
One of the confusions that most organizations suffer from is understanding the fundamental difference between a VAR and an MSP.
A Value Added Reseller or VAR usually deals with larger organizations’ software, customizes it for the client’s benefit, and sells it in a new avatar. These software and hardware components will add value or enhance and improve the existing IT Infrastructure. Value-Added Resellers indeed sell products and don’t usually deal in services.
Managed Service Providers or MSPs, on the other hand, are mainly providers of services. As technology products increased, they also became cheaper for many; however, they again turned complex. Thus, managing technology became a hassle and expensive for many business organizations and institutions that leverage core technological products for their operations. It is in this scenario that MSPs become relevant. Thus, one can say that an MSP is a next-generation VAR in a way.
Thus, the complexity that accompanied the advancements in technology is the most significant concern of organizations that has essentially given shape to MSPs. MSPs partner and collaborate with larger organizations for a recurring fee. As mentioned earlier, the range of service is vast. It can be administering the entire IT Infrastructure, maintaining the hardware, managing emails, or helpdesk management. The MSP will be working within the organization’s preamble and work cycle, dispensing responsibility in the same manner the client would have, had it been an internal department. The ever-increasing complexity of IT processes and the greater demand for specialization have made the MSP business model highly successful.
The IT sphere is a vast universe where there is a need for both Value Added Resellers and Managed Service Partners. Without them, there will be a large void that most organizations will find difficult to fill up. As the realm of technology is fast expanding and evolving, these business models will also undergo essential evolution in the times to come.