Contract Template

IT Management Services Players Design Models for Customer Contracts

The Global MSP Network, or GMN -- a consortium of 30 management service providers (MSPs) and management technology providers -- released in mid-August a Contract Assembly Resource, is designed to help members of the recently formed network develop contracts and service level agreements.

Among the charter members are major vendors, including 3Com Corp., EMC Corp., Intel Corp. and Trend Micro Inc. , as well as 18 MSPs, including 2nd Wave Inc., Center 7 Inc., PC Express, SilverBack Technologies Inc. and Voyus Canada Inc.

Whereas traditional information technology (IT) outsourcers supply actual enterprise IT infrastructure, rapidly emerging MSPs outsource only the management of enterprise-owned infrastructure and tend to be focused on Internet-based IT. Members use GMN to create working partnerships with each other, share best-in-class methodology and define standards to integrate technologies provided by participating companies.

The GMN, as a provider-to-provider exchange and channel-building force, intends to facilitate pre-bundling and co-marketing of outsourced IT management services, including performance, security, storage and software version management. In contrast, the mission of the MSP Association, which was formed last year, is to educate the buying community.

As one of its first efforts to develop that "unified voice," the GMN is providing members with methodologies, templates and samples for developing customer contracts. The participating manufacturers expect MSPs to become a significant channel for their IT management tools.

"We consider the GMN a critical resource for Intel as we refine and develop our product offerings to meet the growing needs of the MSP channel," said Steve Daly, business unit manager for Intel and president of the Vendor Advisory Council for the GMN, in a prepared statement.

The Contract Assembly Resource includes sample contracts and service level agreements (SLA), as well as the most common clause categories, while broadly defining service commitments and customer obligations. The resource also includes sample exhibits and SLAs, which can be added to the primary contract to describe specific components and their associated service levels.

Additionally, it includes an overview of different types of services that may be covered by an SLA and considerations for each type of service, plus an outline to help MSPs ensure they include all of the vital components for an effective SLA.

"In this relatively new market, there aren't many resources to develop agreements that address the needs of MSPs and their customers," says Dan Atkinson, executive vice president of DirectPointe Inc. "The Contract Assembly Resource will save GMN members money and ensure they are considering all of the key elements that are needed for effective agreements."

As members use the consortium to bundle offerings into full-service packages among themselves, some members expect that network service providers--particularly those with Internet Protocol (IP) network reach into multiple geographies--will play an increasingly important role in the MSP channel.

Members effectively will gain global reach through mutual referrals, according to Dale Allaire, SilverBack's director of corporate communications.

"We don't have an international channel built on our own, and we need both channels and partners in other disciplines to build that market," he says.

Adds SilverBack's vice president of business development Robert Klotz, "You probably won't see end customers directly tapping the GMN. Rather it's likely that, when a customer tells an MSP, 'You can win my contract if you can also provide this other management service,' then that MSP can go to the GMN to find a partner offering that additional service. It's a venue for packaging and creating contracts and pricing for new bundles of services."

In short, the consortium said in its launch news release, "The primary goal of the GMN is to assist its members in gaining the ability to manage up to 100 percent of their customers' IT management needs."

Members also emphasize the international complexion of the cooperative's membership. Nine are based outside the United States.

"The GMN...will have a great impact on the MSP business model, which is advancing quickly in mainland Europe," says Olaf Pas, founder of Quibus Computers Enzo of the Netherlands and president of the European Advisory Council for GMN.

The alliance also has created committees to pool member know-how and common best practices in two other areas: marketing and sales effectiveness and insurance and risk-management methods.

"You will see additional announcements as we release solutions to these pressure points in the MSP business model," says Oli Thordarson, president of Alvaka Networks and GMN executive board chairman. "By identifying and addressing these issues raised by our members, the GMN takes a leadership role in driving the continued success of our members."

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