A former top Microsoft veteran, Joseph Landes, Chief Revenue Officer at Nerdio, shares insights on the 10-year anniversary of Microsoft Azure, how it has benefited the partner ecosystem, and the benefits that lie ahead for MSPs and the channel.
I vividly remember the day, over a decade ago, that Corporate Vice President of Server and Tools Marketing at Microsoft, Andy Lees, told me about a new project called “Red Dog.†A project that would soon come to be known as Microsoft Azure and completely transform the way not only Microsoft, but thousands of companies across the globe, would do business. At the time, I didn’t even come close to grasping the magnitude of “the public cloud,†but since its release in February 2010, Microsoft Azure has played a pivotal role in the technology industry as whole – from Managed Service Providers (MSPs) to small businesses to enterprises alike.
Fast forward to today and I am now the Chief Revenue Officer at Nerdio where I work every day to empower MSPs and IT professionals to build successful cloud practices in Microsoft Azure. Consulting practices, ISVs, startups, and tens of thousands of companies have emerged, grown, and are succeeding as a result of Microsoft’s investment in Azure and the public cloud. In fact, the majority of Fortune 500 companies are harnessing the power of Azure to run their businesses, derive insights from their data, and achieve greater efficiencies. The release of Azure was a pivotal moment in IT history for a variety of groups – developers, enterprises to name a few – but MSPs and the channel community have arguably gained the most from its launch and evolution.
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Why Microsoft is a logical choice for the channel
Microsoft alone has unequaled technology compared to other public cloud competitors, but their real distinguishing feature is the work they’ve done in creating an unparalleled partner ecosystem. This allows them to better support the channel through innovative vendors, educational services and collaborations. But their partner ecosystem allows the partners and MSPs that are part of it to make more money selling Azure and better understand the powerful services and infrastructure that Azure offers.
Microsoft Azure adoption hesitations
While Microsoft Azure has gained powerful momentum and adoption rates over the past decade, many MSPs can still be hesitant about adopting it. Why haven’t more MSPs embraced the public cloud to run their customers’ IT infrastructures? Many still find themselves held back by inertia, choosing to do things the way they always have done it: on-premises. Beyond that, however, they see Microsoft Azure as a complicated set of services they can’t get their arms around. They don’t have Azure experts on staff and they mistakenly view the public cloud as risky because they struggle to understand the cloud economics. However, in fact, they can make them more money by transitioning to Microsoft Azure than remaining in the on-premises world.
Reaping the benefits of Microsoft Azure
This reluctance and hesitancy on the part of MSPs is a self-induced detriment threatening to leave them well behind the technology curve and at risk of being less competitive relative to their peers. It can even potentially cause them to lose business or go out of business as they can’t adapt to the reality of the cloud — which is here today and not something that is “coming soon.â€
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Below are three steps that every MSP should take to start reaping the full benefits of Microsoft Azure if they haven’t already.
- Education. Learning more about Microsoft Azure is the first step. Fortunately, there are numerous resources available to MSPs to learn and grow their practice in Azure, from certifications and YouTube channels, to online academies and more. Increasing their knowledge regarding Azure terminology and fundamentals is a critical first step for every MSP to begin building their practice’s cloud foundation.
- Embrace cloud economics. One of the most asked questions from MSPs considering building a cloud practice in Azure is, “how do I make money?†This also serves as the biggest barrier to MSPs considering Azure, as they simply can’t believe that they can make significant money in the cloud relative to their on-premises business. The truth, though, is that MSPs can easily make high 60-70% margins or higher selling Azure, but they need some coaching in the basics of cloud economics. Microsoft has been quite thoughtful about how to incentivize MSPs to move to the cloud by offering programs such as Azure Reservations, Azure Hybrid Usage, and becoming a CSP Reseller.
- Win Somewhere Before You Try to Win Everywhere. MSPs are often overwhelmed by the thought of moving all their customers to the cloud. The reality is that no MSP will move all their customers to the cloud overnight. To build a cloud practice in Azure, start with getting just one customer to the cloud. The rest will follow. They need to develop expertise in the cloud and then it will become like riding a bicycle—they won’t have to think about how to do it—they’ll just do it!
The 10th anniversary of the launch of Microsoft Azure is a moment for reflection in the channel. It is an opportunity for every MSP to ask themselves what their cloud strategy is and more importantly, what their cloud strategy should be moving forward. Building a cloud practice in Microsoft Azure should be a priority for every MSP in 2020 as they strive to maximize profits and optimize their customer experience.
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