We all understand that our industry has a fondness for acronyms. Acronyms serve as a significant tool for marketers aiming to refresh an old idea, product, or solution with new features. We won’t delve into why the industry operates this way, but it’s important to highlight the risks associated with using terms whose definitions haven’t been universally established and accepted.
One question from our client revolved around recruiting MSPs. They weren't referring to the Wikipedia, IBM, or IDC definitions of MSPs, but to their own unique definition.
Let's be clear: if consulting firms strive to define a term, it's for the purpose of that definition being utilized. Language exists to facilitate communication with a shared understanding of words... well, most of the time, at least. If a car is universally recognized as a car (Tesla notwithstanding), can the same be said for what constitutes a Cloud?
Thus, we engaged in extensive discussions about those three letters: MSP. Many vendors attempt to encapsulate all their aspirations and expectations within these three letters, much like VARs did in the 80s, even though no one has ever self-described their activity as “VAR.”
The acronym MSP is like the acronym VAR, it denotes not an activity, but a quality: the quality to sell or resell digital solutions as ongoing services.
One question from our client revolved around recruiting MSPs. They weren't referring to the Wikipedia, IBM, or IDC definitions of MSPs, but to their own unique definition.
Let's be clear: if consulting firms strive to define a term, it's for the purpose of that definition being utilized. Language exists to facilitate communication with a shared understanding of words... well, most of the time, at least. If a car is universally recognized as a car (Tesla notwithstanding), can the same be said for what constitutes a Cloud?
Thus, we engaged in extensive discussions about those three letters: MSP. Many vendors attempt to encapsulate all their aspirations and expectations within these three letters, much like VARs did in the 80s, even though no one has ever self-described their activity as “VAR.”
The acronym MSP is like the acronym VAR, it denotes not an activity, but a quality: the quality to sell or resell digital solutions as ongoing services.
There are various perspectives on what constitutes an MSP. Some believe that anyone reselling something consuming IT resources as a service qualifies as an MSP, encompassing ISV-SaaS providers. On the opposite end, some view MSPs solely as Cloud Providers or Cloud Service Providers. In between, there are those who consider resellers of third-party Cloud/SaaS services as MSPs.
From our client's inquiry, it's generally observed that MSPs typically (but not always) encompass the following categories:
Cloud Providers / Cloud Services Providers Managed Services Resellers Occasionally, it also includes ISVs offering their solutions as SaaS with additional services such as data hosting.
From our client's inquiry, it's generally observed that MSPs typically (but not always) encompass the following categories:
Cloud Providers / Cloud Services Providers Managed Services Resellers
How many MSPs in Europe? How many MSPs in Middle East? How many MSPs in Africa? How many MSPs in North America? How many MSPs in Latam?
1 E 1 0 0 0 1 1 0 0 1 1 1 STATS_PRC_REF_TOTAL_COLUMN STATS_VAR_FIRST_PERCENT STATS_TOTAL_PRC_NONE STATS_PRC_FORMAT_DEC_2_PRC 21024 Europe 0 18096 Middle East 0 18542 Africa 0 21030 North America 0 18545 Latin America 0 19202 Cloud Service Provider - Cloud active 0 19211 Managed Services Resellers (VAS resellers)- Cloud active 0 Please note that the compuBase data does not cover 100% of the market, we cover 85 % of the the market revenue and between 50% and 80% of the locations
We ultimately arrived at this segmentation for Cloud Activities :
1 E 1 Cloud_active_all_geo.sel 0 0 0 1 1 0 0 1 1 1 STATS_PRC_REF_TOTAL_COLUMN STATS_VAR_FIRST_PERCENT STATS_TOTAL_PRC_NONE STATS_PRC_FORMAT_DEC_2_PRC 21030 Amérique du Nord 0 21025 Europe - Middle East - Africa 0 19169 Cloud Technology Provider - Cloud active 0 19184 Data Center - Cloud active 0 19193 Cloud Buider - Cloud active 0 19220 Cloud Adviser - Cloud / SaaS active 0 19202 Cloud Provider - Cloud / SaaS active 0 19211 Managed Services Resellers - Cloud / SaaS active 0 19229 Cloud Application Provider - Cloud / SaaS active 0 19238 Cloud Broker Platform - Cloud / SaaS active 0 19247 Cloud Market Place - Cloud / SaaS active 0 19395 Not yet classified - Active 0 Cloud activity segmentation- active Cloud companies
Conclusion
In conclusion, when addressing a new or evolving market, avoid introducing a new acronym unless it has become standardized. Clearly define the attributes that partners should possess to collaborate with you.
The acronym merely serves as a label; affixing a label to a box doesn't guarantee that the contents match the label.
The acronym merely serves as a label; affixing a label to a box doesn't guarantee that the contents match the label.