Thursday, June 16, 2011

Managed Services Will Be the Cloud Money Maker

TDS is an ILEC and a CLEC, the 7th largest telco in the US, and a Hosted PBX provider utilizing Broadsoft. TDS has made some acquisitions in Hosting (recently Iowa's TEAM). Now TDS has hired an MSP dude to run its hosting and managed services division, according to MSPmentor.

TWC bought Navisite to get into Hosting, Cloud and Managed Services. Windstream is going big into hosting, cloud, and managed (HCMS). VZB bought Terremark. CenturyLink bought Savvis.

Much of it is a realization that wireline is flat or shrinking, so where is the growth going to be? Cloud alone isn't the answer, because Cloud requires technical expertise, project management, and digital hands. You can build it or you can buy it.

Managed Services is Big Business. Managed Services is where Cloud hits the gravel. It's not a numbers game either. A few hundred clients that start with you small can grow big with you. I think the Lifetime Customer Value of a managed services customer will be huge -- bigger than any Fat Pipe client.

There are a few things to think about as you get into this space though.

The big guys are buying it. Revenue, the architecture and the talent. What are you going to do?

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