Managed Client(r) as a Complete Service

Business Desktop Management as a Fee Service Opportunity

Updated: September 27, 1999

After conducting some focus work and discussing this topic with fee service consultants, I'd like to share some general information which may be helpful in developing your marketing approach.

Table of Contents

Summary

Many of the best revenue opportunities in the computer industry involve service contracts. One such opportunity receiving a great deal of focus from leading technology vendors, including Intel and Novell, involves the management of desktop computers. This opportunity is expected to grow to over $4 billion by 2002. The primary market is seen as large accounts which would acquire tools like Intel's LANDesk. However, many organizations, large and small, would like to outsource all or part of their desktop computing environment. This proposal suggests you can put accounts of any size within your reach for such a service.

Why a "service"?

To the consultant, the value of providing desktop computing management as a service lies in the ability to create a recurring revenue stream which has high net revenue margins. The key issue to being able to deliver this as a service is the ability to control of your costs; expense to revenue. And the key to the ability to control of your costs may be the ability to control the hardware and software to the extent possible, without infringing on the user organization's ability to effectively use this business tool. The services model makes it possible to move this control from the user to the consultant.

That's what the Managed Client opportunity is all about. Outsourcing the entire computing computing environment; hardware, software, service and support, all as one comprehensive service. The result? A profitable, recurring revenue stream which can extended, expanded, and duplicated. The issue? Control. Control of costs and control of the computing environment.

The Opportunity

The opportunity, in some shape or form and to some degree, exists in any business which uses PCs. Managing these business desktop computers is a difficult and expensive task which most organizations are ill suited to perform. Many users are comfortable with their applications, but not very aware of the PC itself and cannot perform problem resolution activities. Supporting these users is difficult and expensive.

Both the hardware and software which make up the PC business computing environment have become characterized by "technology churn". Most often we are talking about software deployment associated with upgrades and "fixes" which need to be applied. This is also expensive. The autonomous "stand alone" nature of PCs is in conflict with the business network and has created serious business exposures in the areas of administration, operations, management, and even security. Despite the need for control in a business environment, most PC users can add or remove hardware or software from their workstations at their whim, with chaotic results.

Many businesses feel real pain associated with managing an IT resource. These businesses find themselves devoting time, people, and money to managing computers as technology. They would rather apply these resources to servicing customers, driving revenues, and meeting business objectives. They want to reduce the computer to the role of business tool. These businesses do not want to expand their skills to include Information Technology any more than is absolutely required.

So, the opportunity to "outsource" management of the desktop computer technology has great appeal. Some aspects of computing environment are easier to outsource than others. Operational management of PCs has been difficult to outsource because so much of this support, so much of the day to day operations, has to be delivered at the actual workstation. That makes this type of support expensive. It's difficult for the service provider to control costs if they are subject to dealing with "unscheduled fire drills" which require travelling to the user's premises. I've been told by a large service company that, although customers were interested in desktop management services, the company couldn't find a way to make the service profitable.

Again, the key issue regarding desktop management as a fee service is the ability to control the costs. Addressing that set of issues is a primary focus of Serenity Systems and Managed Clients. Reliable systems managed remotely. A network capable of running 24 hours a day, seven days a week, and able to be managed from anywhere the consultant chooses.

Information to support the marketing vision is contained in the Managed Client Document Library. I will avoid being redundant and direct readers to review the content available in those documents. But here are the basic issues which motivate user organizations to consider outsourcing management of their desktop computing environment:

Why the Customer Buys

Making Money with Managed Clients

That's all I can say on the topic. The Managed Client cannot be sold to every user. However, when the model fits, it is a marvelous revenue opportunity for the channel partner and provides an excellent solution to a very real problem experienced in the world of business desktop computer users. There are many other Managed Client opportunities, including excellent vertical and industry specific environments and applications. Here the operating system is even less of an issue because it is likely that the workstation is only running the vertical application. Again, the Managed Client provides the same set of excellent user benefits.

I hope this material can be useful as the basis for some marketing activities. Feel free to offer comments to me via email (BStJohn@Serenity-Systems.com) or using the Channel Partner Marketing forum on the web site.