Euclid Takes On Managed Services

In addition to selling application and infrastructure management services to midsize enterprises, Euclid also targets offerings at systems integrators and service providers that resell them as either Euclid-branded or private-label services, said Sateesh Andra, co-founder and vice president of strategy, marketing and business development at Euclid, based here.

"Solution providers' core competency is hosting or application development, but they can sell these value-added services and get an average revenue of $200,000 per year per customer by partnering with Euclid," Andra said.

Through its Trinity Internet Operations Framework, Euclid provides a suite of managed services for monitoring and testing Web service, a service-delivery network that extends remotely to monitor infrastructure housed within a customer's internal data or external data center, and a service management portal.

Euclid's service portfolio includes managed infrastructure monitoring, application testing and deployment services covering the availability, performance and security of network devices, operating systems, Web servers, databases and Web applications. "It's a combination of service offerings for customers who can't afford and don't want to build the capabilities in-house," said Andra.

Media Revolution, a solution provider that offers application development and Web marketing services, relies on Euclid's managed testing and monitoring services to ensure that its projects are bug-free, said Ian Bogost, vice president of technology at the Santa Monica, Calif.-based company. "We want to make sure that it's working 100 percent when it goes out the door," he said.

Media Revolution is currently pitching to a state government customer a solution for developing a Web site that would give account access to commuters using the state's automated toll system, Bogost said. Euclid would provide testing and long-term monitoring for the site, which will handle upward of 2 million transactions each day, he said.

Euclid began selling its services about nine months ago after developing the necessary infrastructure, Andra said. Now the service provider is working with about 40 customers, each bringing in an average revenue of $20,000 per month, he said, adding that Euclid delivers services through a network operations center in San Jose and distributed points of presence (POPs).

To help defray infrastructure costs, Euclid doesn't have a data center, but instead partners with companies such as Exodus Communications and AT&T for hosting, storage and content delivery services, Andra said.

Because of its focus on the entire application life cycle, Euclid goes beyond the capabilities of most managed service providers (MSPs), said Dana Tardelli, a research analyst at Aberdeen Group. "Euclid may be what an MSP should have been," he said.

The key for the company will be to find solution providers who acknowledge that they could benefit from reselling its services rather than trying to build those services themselves, Tardelli said. "The catch is that people come to service providers for quality, so if the expertise isn't there, they won't be getting many customers," he said.