There is a tremendous amount of ground swell in the channel community with regards to value-added resellers (VARs) establishing managed service provider (MSP) initiatives. It is easy to get caught up in lure of a new money-making venture, especially with hardware and software margins declining. However, you need to be certain that your company has the right DNA to execute the MSP model.
The answer may not be obvious for many reasons. It may lead you to a variation of the classic MSP model, which involves performing the actual service; or you may sell the concept for a fee, but have the OEM provide the actual service; or you may conclude that the MSP business is not for you at the present moment. Your due diligence will take you down the right path. Either way, it is good to determine how deep the water is before you jump in -- and how to navigate once you're in there.
The following questions will help you determine if, first, your DNA is a match for the MSP model and, if so, how to establish effective MSP vendor relationships and sales models.
Becoming a managed service provider
1: Is your company a good match for the MSP model?
2: What are the benefits of providing managed services?
3: What questions should you ask a potential MSP vendor?
4: How should you price MSP offerings?
5: How can you avoid failed MSP partnerships?
|About the author::|
Paul Myerson is a senior channel analyst for the Enterprise Strategy Group. Paul has core competency in direct and indirect sales model efficiency, channel program management and business strategy required for successful vendor/partner success. Myerson comes to ESG from EMC where he played a key role in developing the company's channel business. Prior to joining EMC's channel business, Myerson ran EMC's southeast region direct sales operations. Highlights of his 12-year career with EMC include signing and managing EMC's first resellers as well as the company's largest worldwide partners. In particular, he was recognized for his unique approach to channel management -- strength he now applies to the industry at large. Myerson's charter at ESG is to run the channel practice and to aid ESG clients with their channel initiatives.
Paul is also our featured speaker at the Storage Channel Reseller Seminar, just for VARs, resellers, systems integrators and consultants. This free one-day seminar is taking place in Chicago, Toronto, New York and San Francisco. Take a minute today to apply for this free seminar admission by calling Delegate Recruitment representative, John Smith at 508-621-5535 or applying online.Copyright 2007 TechTarget
This was first published in April 2007