Meeting in the Managed Services Middle

When it comes to cloud computing services the channel is naturally apprehensive about disintermediation. At the very least, the local solution provider needs to keep their brand front and center of the end customer.

That why a new co-branding model for managed service that being offered to the channel by Aerohive Networks is at the very least intriguing. Aerohive this week announced an upgrade to its wireless networking platform that makes it easier to manage mobile computing devices attached to the network. That capability can either be deployed on premise or via the cloud. In the case of the cloud, Aerohive has decided to make it possible to deliver a co-branded managed service offering for Aerohive wireless network deployments that can be administered by partners rather than Aerohive employees.

According to Stephen Phillip, Aerohive vice president of corporate and product marketing, Aerohive partners gain because they get the benefits of being able to deliver a managed service without having to invest in a network operations center (NOC). At the same time, by keeping their brand in front of the customer, it helps remind customers who their primary IT service vendor really is.

In an ideal world, solution providers would build and deliver their own services just so they can keep most of the profits for themselves. But that’s not going to be financially practical for most solution providers, so the next best thing is going to be a co-branded service.

The one thing that there is no doubt about is that as wireless networks continue to supplant wired networks, the opportunity to deliver managed services for wireless networks is immense simply because they are more complicated to manage. As such, customers are much more likely to look for third-party network support than ever before.

The challenge for solution providers is finding the wireless network platform that generates the fewest number of support incidents, but each incident ultimately cuts into the profitability of the managed service.