nGenx Growth Soars As MSPs Migrate From Competitors

As partners migrate to its solutions from Amazon Web Services, Dell and others, nGenx expects to add over 500 new users this month, ten times the number of seats it added last June. nGenx President, JD Helms, said partners see value in nGenx's solution, reporting it costs 40 percent less than similar, competing solutions.

"I think it's huge," Frank Picarello, chief operating officer at TeamLogicIT said about nGenx's growth over the last year. He added that he believes the entire market is "at and inflection point," that is echoed in nGenx' s growth.

According to a prepared statement, nGenx has increased their number of partners by 43 percent year-over-year, growing from 700 partners to 1,000 partners from last September until now.

[Related: independenceIT Wins Major Victory Over Citrix With nGenx]

The growth includes 300 new MSPs and ISVs signing in 2015 alone.

"The fastest growth is in the MSP space," said JD Helms, the president of nGenx. He added that MSPs are used to the technical sell, and understand the challenges that their customers have.

"I believe in the long term, MSPs are in a position to succeed," he said.

After recently launching its first MSP partner program in August, Max Pruger, the chief sales officer of nGenx said he believes most of the MSP growth is coming out of mine share.

nGenx, of course has had MSP partners in the past, Pruger said, but in general, the company did not historically push itself into the space. However, after recent efforts to advertise, educate and work with MSPs, Pruger believes nGenx is getting its name out among channel partners and that MSPs like what they are seeing.

"They [nGenx] have some really good players, they have been able to attract, and it shows," said Picarello.

He said his business previously used IndependenceIT's solution. However, once IndependenceIT changed its business focus and moved towards a software-only strategy, he needed to start looking for a new provider.

"It wasn’t just about pricing," Picarello said. He added he looked for a partner that provided his company with continuity, good partner programs and strong education and training.

Picarello eventually found, like many IndependenceIT users, nGenx's solution, a solution that only recently gained continuity with IndependenceIT software, and a much less costly price point.

In late 2014, nGenx moved its Desktop-as-a-Service service offering from Citrix to IndependenceIT, removing some of what Helms called in a previous interview with CRN, an unnecessary complexity. However, as the company dropped Citrix's complexity, Citrix's licensing fees were removed as well, creating a much more inexpensive solution.

David Seberstyen, the Managing Director of Cloud Taskforce said that the transition from Citrix to IndependenceIT has been a catalyst for nGenx's momentum.

He said without the high licensing fees needed for Citrix or VMWare, nGenx's solution can be much cheaper. "It may not have all the bells and whistles," he said. "But, for the right customer who doesn't need all of that, it might be the right solution."

According to nGenx's Pruger, MSPs are realizing that the company's simpler, cheaper solution has everything they want in a solution, and are therefore migrating from other vendors to nGenx's solution.

"They [new partners] are coming from the usual suspects," he said, listing AWS and Dell as two solutions that he has seen partners migrate from.

"Some MSPs try to roll their own DaaS offering using Citrix," he said, adding that at a small scale, it can be practical, but becomes challenging when it is scaled. "It is not profitable at a small scale, or too complicated at a large scale. So, … It is cheaper for them to do it with us," he said.

Pruger said when MSPs compare products, "we win hands down." He added that MSPs are converting 75 to 100 seats within the first two months, "because they have another vendor and they aren't happy with its service, let alone its pricing."

Helms said the company has heard reports from its MSP partners nGenx's solution has been 40 percent cheaper than other, similar, competing solutions.

"Time is money," Helms said, "and by coming to a platform where most of that is automated, it allows MSPs more time to spend with their customers and their customers spend more time on their business. The whole thing flows more efficient."

However, lower price does not mean lower quality. Helms said that the end product might be cheaper, but partners are seeing that the nGenx offering has quality as well.

"You can sell anything for free," he said, "but if it doesn't work, you wont sell it for long. … Once our customers come in, they stay. Our churn is less than three percent."