We recently announced some changes to our MSP program that will be effective from 1 April 2017. We understand that these are disruptive to some of our MSP partners, and we’ve received robust feedback since the announcement. So first I apologize for any distress caused by how we handled these changes and secondly I wanted to explain a bit more about our thinking behind the changes to our MSP program. I also wanted to make myself available to talk with any partners that might still be concerned and want us to work with them on this transition.
In aggregate, we do think these changes are better for customers, better for our partners and better enable us to deliver our services to you and to customers on a sustainable long-term basis.
So a quick summary of the key changes:
- Starting from 1 April 2017, we will only be offering new Mimecast accounts through MSP’s for end users that are contributing a minimum of $100 a month (net to Mimecast).
- We are eliminating entry level email security (basic anti-spam and anti-virus) SKU’s for very small customers.
Here’s the thinking that got us to design the change:
- The economics of delivering entry-level email anti-spam and anti-virus to very small businesses are generally unattractive to SaaS providers. McAfee perhaps most recently illustrated this with their MXLogic product. After years of building a user base that contained much marginal business from thousands of tiny customers, they found it difficult to invest meaningfully in their platform. Ultimately as we all know, they decided pulled the plug on the entire offering. We don’t believe it serves anyone within the Mimecast eco-system to venture down this path, so our decisions are been aimed at steering far away from this fate. Our $100 minimum per customer per month is designed to help us do this and will benefit our partners in a more profitable way.
- We do have conviction that customers should purchase more comprehensive protection to deal with growing email security threats. We feel that especially for small customers who often don’t have any additional layers of protection, entry level email security is not a good solution on its own. So we want to encourage our partners to ensure their customers include more protection, deliver the coverage that they require and do so in a way that is cost effective. So our new entry level SKU now includes our integrated Targeted Threat Protection services. This means that while some very small customers will be paying us more, they will also be getting advanced security protection against phishing, malware, ransomware or impersonation attacks.
We do understand that this is disruptive to some of our MSP partners. We are sorry about that. We are here to work with you to minimize that disruption, within the constraints that we have.
You may know that I am brand new in my role here at Mimecast and frankly am extremely excited about what we can do to help our channel partners innovate and grow. Making a change like this to our MSP program was not an easy decision for the managers that have worked on this before my arrival, but you can be assured of our commitment to being a great partner to you going forward.
Please reach out if I can be helpful to your business as we navigate this change.
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