With recent changes in the virtualization market creating uncertainty for smaller customers and the MSPs that serve them, Parallels — part of the Alludo family of brands — has stepped up to meet the needs of this underserved segment. ChannelPro caught up with Michael Hopfinger, global vice president of sales at Parallels.
He shared how the company is positioning itself among the top VMware alternatives for MSPs, why its pricing model is resonating with partners, and his advice for MSPs navigating today’s market disruptions.
Q: What Is Parallels’ Unique Value Proposition for MSPs Serving Small and Midsize Businesses (SMBs)?
Hopfinger: This is the space where we excel. Historically, Citrix and VMware held 70% to 75% of the virtualization market. Their focus on the enterprise crowded companies like Parallels into the SMB space. We’ve leaned into that and built our business around it. Our sweet spot is environments with 100 to 300 users, and most of our customers fall within that 250-and-under range.
Our value proposition is all about simplicity, flexibility, and interoperability. We work with nearly every hypervisor and infrastructure platforms MSPs are already using, and can run in any cloud, on-prem, or hybrid environment. You don’t need to rip and replace. We also offer a single license model. MSPs can buy via subscription or through a service provider agreement without being locked into three- or five-year terms.
Q: How Does Your Pricing Model Benefit MSPs Specifically?
Hopfinger: We license by concurrent users, not named users, which can significantly reduce costs — sometimes by 25% to 75%. For example, if you’re supporting a call center with four shifts, you only need enough licenses for one shift, not all four. That’s a huge advantage.
We also bill partners based on the previous month’s peak usage, not upfront. That means MSPs bill their customers before we bill them. For a channel partner, especially one managing tight cash flow, that’s a big win.
And, more importantly, the savings create more wallet space for MSPs to offer their own professional services. Instead of spending a client’s entire budget on high-cost licenses, you can introduce higher-margin services and retain more value in-house.
Q: What Challenges Are Your MSP Partners Facing Today that Parallels Helps Solve?
Hopfinger: There’s a lot of disruption in the market right now. With Citrix being sold and VMware pulling back from the SMB space after the Broadcom acquisition, many partners feel stranded. Their vendors are raising prices or pulling out of deals under $250,000.
We’ve designed our model to be channel-friendly. We’re not here to gouge partners; we want to help. Our tech enables customers to keep using their essential apps securely and efficiently without the overhead of enterprise complexity or costs.
Michael Hopfinger
Q: How Is the Current Market Disruption Creating Opportunities for Parallels?
Hopfinger: It’s a once-in-a-career opportunity. A massive portion of the midmarket just got left behind by the two biggest players. Partners are looking for alternatives, and we’re seeing the channel warm up to us in a big way. Partners who once wouldn’t return our calls are now calling us.
Many MSPs suddenly found themselves priced out or deprioritized as the company began focusing more heavily on large enterprise accounts. And for MSPs who had built their business around those tools, that created real vulnerability.
We’re seeing similar disruption in other areas, too. First on the application delivery side, and now in hyperconverged infrastructure (HCI). Parallels is part of that broader, more accessible ecosystem.
Q: Your Team Was On Hand at the Recent ChannelPro DEFEND Central Event in Dallas, which Focused on Cybersecurity. What’s Your Advice to MSPs Trying to Grow while Maintaining Strong Security Offerings?
Hopfinger: Don’t overcomplicate your tech stack. Vendor sprawl is real, and it’s dangerous. Too many tools make things harder to manage, more expensive, and increase risk.
The biggest threat to your clients often isn’t some sophisticated attack. It’s the basics being neglected. Patch management, updates, staying on top of routine tasks — that’s what protects customers. So I always recommend doing fewer things better and focusing on execution.
Q: Any Final Thoughts for Our MSP Audience?
Hopfinger: We’re not chasing the enterprise. We have customers with 35,000 licenses, sure — but strategically, we’re focused on organizations with 200 to 1,000 seats. That’s our core. That’s where our product adds the most value, and where we can grow with our partners. At the end of the day, we’re here to help MSPs who’ve been left behind. If you’re getting priced out of your current solution or feel squeezed by vendors that no longer value your business, we’re a viable, profitable alternative — and we’re easy to work with.
Images: DALL-E, Parallels
