TAG | Managed Service Providers
Since we launched our Managed Service Provider program late last year, we’ve signed up many MSPs that were interested in adding Application Performance Management-as-a-Service (APMaaS) to their service catalogs. Wouldn’t you be excited to add a service that’s easy to manage but more importantly easy to sell to your existing customer base?
Service providers like Scicom definitely were (check out the case study), because they are being held responsible for the performance of their customer’s complex, distributed applications, but oftentimes don’t have visibility inside the actual application. That’s like being asked to officiate an NFL game with your eyes closed.
The sad truth is that many MSPs still think that high visibility in app environments equates to high configuration, high cost, and high overhead.
Thankfully this is 2013. People send emails instead of snail mail, play Call of Duty instead of Pac-Man, listen to Pandora instead of cassettes, and can have high visibility in app environments with low configuration, low cost, and low overhead with AppDynamics.
Not only do we have a great APM service to help MSPs increase their Monthly Recurring Revenue (MRR), we make it extremely easy for them to deploy this service in their own environments, which, to be candid, is half the battle. MSPs can’t spend countless hours deploying a new service. It takes focus and attention away from their core business, which in turn could endanger the SLAs they have with their customers. Plus, it’s just really annoying.
Introducing: APMaaS in a Box
Here at AppDynamics, we take pride in delivering value quickly. Most of our customers go from nothing to full-fledged production performance monitoring across their entire environment in a matter of hours in both on-premise and SaaS deployments. MSPs are now leveraging that same rapid SaaS deployment model in their own environments with something that we like to call ‘APMaaS in a Box’.
At a high level, APMaaS in a Box is large cardboard box with air holes and a fragile sticker wherein we pack a support engineer, a few management servers, an instruction manual, and a return label…just kidding…sorry, couldn’t resist.
Simply put, APMaaS in a Box is a set of files and scripts that allows MSPs to provision multi-tenant controllers in their own data center or private cloud and provision AppDynamics licenses for customers themselves…basically it’s the ultimate turnkey APMaaS.
By utilizing AppDynamics’ APMaaS in a Box, MSPs across the world are leveraging our quick deployment, self-service license provisioning, and flexibility in the way we do business to differentiate themselves and gain net new revenue.
Within 6 hours, MSPs like NTT Europe who use our APMaaS in a Box capabilities will have all the pieces they need in place to start monitoring the performance of their customer’s apps. Now that’s some rapid time to value!
Self-Service License Provisioning
MSPs can provision licenses directly through the AppDynamics partner portal. This gives you complete control over who gets licenses and makes it very easy to manage this process across your customer base.
A MSP can get started on a month-to-month basis with no commitment. Only paying for what you sell eliminates the cost of shelfware. MSPs can also sell AppDynamics however they would like to position it and can float licenses across customers. NTT Europe uses a 3-tier service offering so customers can pick and choose the APM services they’d like to pay for. Feel free to get creative when packaging this service for customers!
As more and more MSPs move up the stack from infrastructure management to monitoring the performance of their customer’s distributed applications, choosing an APM partner that understands the Managed Services business is of utmost importance. AppDynamics’ APMaaS in a box capabilities align well with internal MSP infrastructures, and our pricing model aligns with the business needs of Managed Service Providers – we’re a perfect fit.
MSPs who continue to evolve their service offerings to keep pace with customer demands will be well positioned to reap the benefits and future revenue that comes along with staying ahead of the market. To paraphrase The Great One, MSPs need to “skate where the puck is going to be, not where it has been.” I encourage all you MSPs out there to contact us today to see how we can help you skate ahead of the curve and take advantage of the growing APM market with our easy to use, easy to deploy APMaaS in a Box. If you don’t, your competition will…Link to this post:
If you already know what APMaaS is then feel free to skip to the next paragraph. For the rest of you, APMaaS is Application Performance Management as a Service. It is an offering that provides end user experience monitoring, application component discovery, transaction mapping and tracking, deep application diagnostics, and analytics all working together to identify the root cause of application performance and stability issues. Now that you know what it is let’s talk about why you should offer APMaaS to your customers.
Everyday life as a Managed Service Provider (or Cloud Provider or Managed Hosting Provider) can be tough. I used to work for a large financial services company in their Managed Services organization. Our group was tasked with creating valuable IT services that we had to market to the rest of the enterprise. There was NO upper management directive to use our services, NO guidance on what services to create and offer, NO outside assistance in any way. In essence we were a small business operating within a large enterprise left to live or die on our own.
Our main competition within the company was the traditional enterprise IT organization. This type of organization is almost always a lumbering beast over-encumbered with processes designed to handle every oddball situation that may arise. They also provide many valuable services so there was definitely direct competition for the same business. We had two key elements driving our decisions.
- Show meaningful differentiation (innovation) to prospective customers between the Enterprise IT offerings and our own.
- Build a reputation for providing amazing service by showing that our hosted applications were more stable and better performing than those in the rest of the enterprise.
This was the way we would survive and thrive. And it worked!!!
The World As We Know It
The same concepts hold true for the slew of MSPs that exist in todays marketplace except the competition is much stiffer. Get online and search for “Managed Application Hosting” and you’ll see a ton of providers in the search results. So how does one MSP differentiate themselves from the rest? Let’s think about it from the perspective of the customer. If I have a revenue generating application I need the following:
- My app must respond as fast as possible without throwing errors
- always be available
- and have the ability to handle spikes in traffic (holiday shopping, special events, etc…) without slowing down or crashing.
This is exactly what Application Performance Management (APM) with workflow automation enables, but here is where it gets interesting. Providing APM as a Service (APMaaS) is not a new concept. Many MSPs have tried it using “traditional” APM products and quickly realized that the cost of APM software and services far exceeded the amount most of the customers were willing to pay. We’ve heard directly from our current MSP partners that those traditional tools (the other guys) were too difficult to deploy (required knowledge of the application code to instrument), too hard to use (most people are not APM tooling experts), and that the vendors were too hard to work with (loading contracts with tons of services and not flexible enough with pricing models).
If you’re not familiar with how AppDynamics works please take a minute to watch this video as it will really help with the next part of our discussion.
Long, long, long, long, long ago people made fire by rubbing a couple of sticks together. To whomever invented the match, we are eternally grateful. Implementing APM shouldn’t be as difficult as rubbing sticks together to make fire. Here are the features of our “match”:
- Core Platform
- You can use our SaaS platform to collect data from the agents. This makes initial deployment fast and easy and means that your APM infrastructure is automatically managed and upgraded by us.
- You can deploy a full APMaaS infrastructure within your own datacenter if you offer or require PCI, HIPAA, FISMA, etc… compliance.
- Our agents automatically discover your customers application components, business transactions, and application code. This means you spend much less time trying to instrument an application and have more time to focus on growing your business.
- You get all of our features (see a list of feature here) from one product instead of having to install a suite of tools. Less complexity and fewer monitoring components equals easy, fast deployment.
- Traditional APM tools are notoriously difficult to use. You and your customers need to be able to solve problems in just a few clicks. That’s where AppDynamics shines. You can quickly show your customers that the performance bottleneck is not in your infrastructure but in their application code. (Watch this video to see how easy it is.)
- Since our user interface was designed to be intuitive you won’t need to spend excessive time training your staff and customers to use it. Spend that valuable time working on your business.
- Workflow Automation
- AppDynamics has built in Workflow Automation. This means that you can dynamically respond to changing application conditions to meet the needs of the customer. Automatically spin up a new application instance when response time is too slow. Your customers will love you for it!
- Business Considerations
- We have flexible pricing options which are specially designed for MSPs. We know your business model and challenges are unique so we have multiple options available to suit your needs.
- We don’t want to load up contracts with tons of services hours. That only drives up your costs and reduces your margin.
What we are trying to say here is that we really understand the MSP business. We provide a managed service of our own and know what it takes to run a successful and profitable APMaaS business. As an MSP you need to stand out from the crowd and offer innovative solutions to customer problems. We can help you do that. Contact us to find out more about the AppDynamics MSP program and stop rubbing sticks together.Link to this post: