BDR ‘Rescue Kits’ Distributed at IT Nation
Attendees at ConnectWise IT Nation arrived to their hotel rooms to find a treat waiting for them: “BDR Rescue Kits” with everything you’d need for a big channel conference: Life Savers, Wet Wipes, aspirin, antacid and a message to abandon Zenith Infotech.
“There is no time like the present to start migrating away from your existing BDR vendor. Whether it is lousy service or bond defaults that have you worried, now is the time…” the kit’s message read.
eFolder is among the many BDR and remote monitoring and management (RMM) software vendors going after Zenith Infotech’s partners. They’re playing off the revelation that Zenith Infotech defaulted on a $33 million bond, which has raised questions about its financial stability and operational viability.
As one IT Nation attendee said, “[Zenith Infotech’s] competitors are out for the jugular today… let me tell you. The question is, how much of it do we take seriously?”
And that’s a good point. It’s one thing to target a company for competitive displacement. It’s entirely another thing to be overt about it.
Since the Zenith Infotech saga came to light, several vendors and service providers have seen the bond default as an opportunity to capture some partners. eFolder, Asigra and Datto have been quite open about trying to raid the Zenith Infotech ranks. Other competitors such as Intronis and Axcient have been more subtle in targeting Zenith Infotech partners, but not bludgeoning them with competitive messages about the bond default.
CharTec, the hardware-as-a-service provider, has been careful with its new BDR solution that extends its software to legacy appliances, such as Zenith Infotech’s. While CharTec says it’s a perfect solution for those who want to get away from Zenith Infotech, they say the solution was in development long before the bond default became an issue.
>> CHECK OUT: CharTec Supports Backup to Legacy Boxes
Some Zenith Infotech competitors tell Channelnomics that open negative messaging is in poor taste and potentially risky. Negative marketing may win business, but could backfire if the new vendor fails to live up to expectations or falls prey to similar financial issues.
Zenith RMM, the company formed by Summit Partners with the RMM assets acquired from Zenith Infotech, is unaffected by the bond default. Competitors are nonetheless also being targeted by competitors, most notably LabTech Software.
LabTech CEO Matt Nachtrab released a statement last month in which he openly criticized competitors Zenith Infotech and N-Able for taking investment money from venture capital and private equity firms.
“LabTech Software’s continued success is proof that a well-run organization with superior technology does not need debt or venture capital to achieve explosive growth. We partnered with ConnectWise because of our similar background, vision, and target audience. We are now 18 months into the partnership and are on very strong financial footing,” Nactrab wrote. “Recently, we have seen some troubling events in the RMM space with the Zenith bond default and the N-Able private equity investment. It is imperative that Solution Providers and MSPs partner with viable and financially stable RMM software company, like LabTech, to ensure that they are able to consistently meet demand for innovative managed solutions.”
The statement was roundly criticized since LabTech was a recipient of a capital infusion by ConnectWise Capital, the investment arm of ConnectWise. After the statement was released, ConnectWise clarified the investment, calling it more of a “merger” of the RMM and PSA company. The channel, however, saw it as a contradiction.
>> CHECK OUT: In Defense of Venture Capital in the Channel
Zenith Infotech isn’t the only company currently under competitive pressure amid bad news. Hardware vendors saw an opportunity to capitalize on the woes of Hewlett-Packard following its summer meltdown. As soon as HP announced the shift in strategic direction and the potential divesture of PCs from its portfolio, competitors immediately spun up competitive displacement programs to capture partners and customers.
While HP has resolved to keep PCs in its portfolio and changed CEOs, installing Meg Whitman to stabilize the company, competitors continue to press forward with their displacement programs. They believe partners are still concerned about HP’s future and could switch. What’s different, though, is few are openly pressing their case against HP, but rather promoting the clarity and consistency in their strategy and channel execution.
BDR Rescue Kits are clever, but shouldn’t be enough to dissuade solution providers from changing vendors. What solution providers need to do is first ask what’s best for their business and then figure out the best options. Jumping ship too quickly puts previous investments in product, marketing, training and account development at risk. It’s not a trivial issue.
Further, when considering an alternative vendor, solution providers need to do their due diligence to ensure they’re not just trading one bad situation for another. The burden of proof isn’t on the troubled vendor, but rather on the alternative. Alternatives need to demonstrate more than what they’re capable of doing, but that they’re capable of doing it consistency and in perpetuity.
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Lawrence M. Walsh is CEO and president of The 2112 Group, a technology business advisory service that specializes in optimizing indirect channels and partner relationships. He’s also the executive director of the Channel Vanguard Council. He is the former publisher of Channel Insider and editor of VARBusiness Magazine. You can reach him at lmwalsh@the2112group.com.
On Twitter:
Larry Walsh: @lmwalsh2112 | Channelnomics: @channelnomics
3 Responses to “BDR ‘Rescue Kits’ Distributed at IT Nation”
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What troubles me most about this, and all similar events, is that it really is not about what’s best for our businesses or the channel, it needs to be about what’s best for our clients. The parties are great, but they are no reason to adopt a solution. The negative messaging only serves to demean our market and our profession. What people need to remain crytal clear about is that there are horror stories about every vendor and every solution in the channel. The critical link is how the vendor responds. Do they leave the partner hung out to dry or do they work with the partner to do right by the client first and foremost, and then to make the partner relationship equitable in the exposure that often times results. This is the measure of a good partner. I’d gladly forgo all the parties and room drops in the world for solid partners who truly back each other and care most about the interests of their mutual client. Do that, and yes Virginia, your business will in fact prosper. Deperate moves don’t lead to prosperous outcomes.
Each month I get a chance to see many BDR vendors come out and show their stuff at each MSP University bootcamp. The BDR world is a BLOOD RED OCEAN. There are many choices and who do you believe? Partners like Erik Thorsell have nothing to make by being truthful and I would take what Erik has to say to heart. As a <a href=http://www.ulistic.com/msp-marketing professional I struggle each day in our own blood red ocean but I know the BDR world is different.
Axcient trys to do it through their parties. Great parties at ConnectWise and Autotask. I can’t speak much on their product simply because I don’t use them. I can only judge them on their marketing and if their product is as great as the marketing then all is well in their world.
Don’t overlook Cornerstone Backup. They are mostly unheard in our industry. In a world where marketing matters, Cornerstone doesn’t market themselves as aggressively as Axcient but the solution from what I undertand is pretty rock solid.
Trust your peers. That is the best approach.
Stuart Crawford
Ulistic Inc.
4168275339
When I arrived in my hotel room on the first night of ConnectWise IT Nation, I chuckled when I saw my BDR Rescue Kit from eFolder. It struck me as a, well, gusty statement by eFolder, but an honest one. With 62 Zenith BDRs in the field, I feel exposed and let down by Zenith and our team has begun preparations to migrate those BDRs to our partners at eFolder.
My company has been an eFolder and a Zenith partner for over five years, and like most MSPs, we have built our business by developing trusted advisor relationships that rely on honest, open communication. To be frank, it has been a difficult relationship in which we have been wary of whether or not Zenith will keep their word to us and our customers. I now find myself in the position where I cannot be confident that I can fulfill my commitments to clients who use the Zenith BDR. So…honest communication might be jarring, but eFolder has always been a company that tells the truth – even when the message is tough, and even when it doesn’t serve their immediate financial interest.
Our technical team trusts eFolder’s technology, which we’ve used for five years. Our sales team trusts eFolder’s commitment to the partner channel. As an owner, I trust the word of eFolder people I meet. In our industry, what can be more important than trusting relationships that deliver on promises?