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Managed Services

Winner:
Zenith Infotech

Perhaps no company in the managed services stood out more this year than Zenith Infotech – and for all the wrong reasons. Zenith surprised the market when it sold its remote monitoring and management assets to Summit Partners, which in turn formed a new company called Zenith RMM (now Continuum). It then defaulted on $33 million bond payment, which caused partners to question the company’s stability and competitors – particularly those in managed backup – to go scavenging for recruits. Zenith’s financial issues remain unresolved and creditors have the company tied up in courts in the company’s native India. Meanwhile, the market is using Zenith as a test for sound business practices and financial stability. Undoubtedly, Zenith will emerge from its financial woes, and isn’t showing signs of fading away (it expanded into Brazil after defaulting and launched a significant channel training program). But in 2011, Zenith Infotech stood as an example of the bad things that can happen in managed services.

Winner:
Dan Wensley, Level Platforms

As vice president of partner development and marketing at Level Platforms, Dan Wensley makes perennial appearances on many channel lists. Who are we to argue? He is one of the most influential people in the managed services market for good reason – he is a tireless advocate of the managed services model and promoter of managed services development. Few log as many miles, meetings and engagements with partners on managed services as Wensley does. He understands the managed services model better than most. He brings more complementary companies together than most. And he’s constantly looking for ways to enhance the value of managed services through technologies, alliances and market development. His influence in managed services is simply unquestioned.

Ones to Watch in 2012

Michael George, Continuum (formerly Zenith RMM): Michael George got more than he bargained for when he took the chief executive job at a new managed services company, initially called Zenith RMM. The company from which the new entity was spun off, Zenith Infotech, was in crisis and it was spilling over. He and his team have since renamed the company Continuum, formed a new alliance with Datto for backup services and are rapidly executing plans to grow through partners. George and his team have a long row to hoe in 2012, but their efforts are worth watching and, if successful, they could prove a model for how to recover and build precarious businesses.

Xerox and Oki Data: Channelnomics has repeatedly said that managed print services is the technology of the future and always will be. That’s because of the repeated unsuccessful efforts of printer vendors to seed and cultivate a channel base for what should be an extremely lucrative service offering. While managed print continues to confound printer vendors, Xerox and Oki Data are doubling their efforts and committing themselves to developing this service offering in the channel. Between the two vendors’ efforts, managed print may finally take off in 2012.

GFI: The 2012 wild card in managed services is GFI, which is rapidly expanding its market share and channel clout. It has all the elements that make for solid RMM-based managed services, and it continues to add capabilities, such as its acquisition of Montis for cloud application monitoring and management. There are persistent rumors that GFI wants to get into the professional services automation (PSA) game through a major acquisition. GFI’s continued growth in managed services could make it one of the more significant influencers in 2012.

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Tomorrow, Channelnomics will note those who didn’t make the final Influencers cut but deserve recognition. On Monday, Jan. 9, Channelnomics will announce the Influencer of the Year, concluding the inaugural awards program. Stay tuned.

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