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September 2010, Vol. 1 No. 3

Managed services success: All or nothing?

Conventional wisdom once suggested that managed services success required total commitment to the business model. But, today, more IT solution providers are turning that notion into a myth. Rather than trying to operate standalone managed services organizations, some established VARs and IT services companies say a better strategy is to mix managed services along with project-based revenue streams. "One doesn't exist without the other," said M.J. Shoer, president and virtual chief technology officer for Jenaly Technology Group Inc., a solution provider in Portsmouth, N.H. Shoer said that for his team, managed services and project work go hand in hand. "We pursue a true partnership with our clients," he said. There are two practical reasons for this strategy, according to anecdotal accounts from Shoer and other IT solution providers. First, managed services can help a solution provider build predictability into its revenue stream, which can be used to help supplement training or technical investments or, more tactically, to cover...

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