Utilizing automated decision support to determine your business model and organizational readiness to help you successfully enter the subscription-based economy and profitably grow cloud, IoT, digital and security services revenue...
Annual Subscriptions will suffer a Downturn Monthly subscriptions will escalate dramatically as organizations emerge from the economic crisis brought about by the COVID-19 pandemic which will force them to shed costs and avoid long-term commitments as they look to recover. Businesses whose business model is reliant on annual subscriptions will be negatively impacted as their customers and prospects look to conserve cash and survive this once inconceivable financial disaster.
We’ve uncovered some solid trends that I believe every business leader who runs a value-added reseller, IT Service Provider or Managed Solution Provider should know prior to creating a strategic cloud services business. The single biggest realization we’ve come to is - this it’s all about creating a new business model that extends your current approach. If this were just another technology transition it would be easy, but, this is the first time most of us have had to signif
SunGard Availability Services - Cloud Series, Part IV With the shift to monthly recurring revenue (MRR) models, now more than ever, companies are keenly vested in retaining customers for life. In fact, long-term customer retention and true partnership with customers is now an organization's number-one goal, but this can be challenging.
We find that companies that are most successful in driving MRR growth build a level of trust with their customers that less successful compa
Creating and driving a Cloud and IoT digital business entails building a solid subscription-based monthly recurring revenue friendly business model, while running and growing your legacy business. It’s not an either or situation, you must do both… This requires pig-headed determination and commitment. Every time the word commitment is mentioned within ear shot, I always think of one of my favorite fables. The Tale The business parable of “The Chicken and the Pig” is all abo
Too many IT Channel Partners find themselves on the tracks! The biggest reason is that getting on the train requires a serious commitment of time, energy and resources to begin the journey to the subscription-based economy. Oh yeah, this is the first time we’ve required a major business model change in this industry in my lifetime and I’ve been around this business for over three (3) decades. In short change is hard, and nobody ever wants to change without a serious catalyst
Automation is Key IT and Managed Service Providers need to move faster, but the absence of regimented approaches, structured processes and tools constantly hold you back. The escalating demands of new technologies and their associated business models are disrupting the marketplace and your ability to keep pace with the consumerization of information technology. If that’s not enough there’s the ever-present pressure to increase transactional revenue, while adding new subscript
No time to talk… This was the week of truncated calls and meetings as everyone, including myself, was fixated on driving every potential deal to closure. After all its vitally important to ensure a strong Q1 (calendar) close. Most people I spoke with lead and run highly transactional VAR, IT Solution Provider (ITSP) and Managed Service Provider (MSP) businesses and don’t really have any subscription-based monthly recurring revenue, to speak of, so the pressure is always on to
' A long time ago in a galaxy far far away' Darth Vader created the ability to take virtualized instances and utilize a hypervisor to make them abstract, transportable, and ubiquitous. This was his initial thrust to take on the Empire and dislocate and destroy the server market. Through the aggressive efforts of his loyal Stormtroopers, he expanded his disruptive efforts and successfully attacked the desktop, storage, database, and network hardware market leaders. But as in a
The approach may help us all transition to a hybrid business model The best athletes in the world go back to training camp every year and focus heavily on the basics and fundamentals they’ve rehearsed and executed since they were kids. Once the basics have been perfected, the repetition begins to ensure any new concepts and plays become second nature and the muscle memory required to operate at the highest level is engrained – the athlete is ready to progress. Although I’m a
A Hybrid Business Model is the Answer! Now if you only knew the question! Well the question is – “what is the critical element required to create a more valuable and growth oriented value-added-reseller (VAR), IT Solution Provider (ITSP) or Managed Service Provider (MSP)”? During the several days spent at Channel Partner Evolution 2017 (@Channel_Expo) a week ago, it became apparent that the reality of cloud computing, software-defined networking and the internet of things (Io
I had the pleasure of sitting down with Barb Levisay (@blevisay), owner of Marketing for Partners to discuss the value of building an Internet of Things (IoT) practice and the value it would bring to MSP’. Initially the article was posted on the Redmond Channel Partner website several months ago. Although some time has passed since the original post, I believe the information to be extremely valuable, actionable and timeless. Please take the time to read Barb’ article below…
Every day I have conversations with the leaders of value added resellers (VAR’) and solution providers and the dialog goes something like this - “I know we need to get serious about Cloud, but business has never been better and I don’t see any signs of the Cloud threatening my business…” Oh boy, I'm old enough to remember Ken Olsen, the founder of Digital Equipment Corporation, telling the world that "there was 'no reason for any individual to have a computer in his home'?
Perhaps it’s your business model! Many times when we review the findings of our automated software-as-a-service platform’ readiness results we see a very familiar picture – the business leaders are not prepared or are unaware that a change is required in their business model to begin moving the needle. We see it time after time, all the money, energy and effort focused on sales and engineering enablement activities can’t overcome their legacy business model. It’s tough to m
It’s the hard truth that most value added resellers (VAR’s) and Solution Providers fail to acknowledge and then ultimately take too long to address… Once you commit to creating or growing a cloud services business – you’ve got to alter your sales model to ensure it maps to a recurring revenue based business model. There are four (4) major truths that need to be confronted, acknowledged and addressed – and if they are, will free you from the tyranny of missed expectations and
Damn it – react! The increasing demand for cloud services is forcing value-added-resellers (VAR’) and Solution Providers to assess their current business models and the services they provide to their clientele. Many times that leads to talk of becoming a new age VAR or a “Hybrid VAR” 1. Note 1: Although folk’s these days prefer Solution Provider verses VAR, I’ve never seen the downside of value added in any name or phrase and use the descriptor VAR proudly – ergo, I’ll util
I’ve been doing a great deal of work lately guiding Solution Providers and VAR’ into to the cloud and as you can imagine it’s a difficult and tedious process that can be gut wrenching for many organizations. In addition, my eyes were just opened a little wider when I attended Channel Partners (@Chanel_Online) recent Channel Partners Expo (@CloudPartners) in Boston. I’ve been in the channel for over twenty-five (25) years and had never attended an event that was primarily fo
While performing automated Cloud Readiness Assessments for value added resellers (VAR’) and Solution Providers utilizing an innovative Software-as-a-Service (SaaS) decision support platform we’ve uncovered some solid trends that I believe every business leader should know prior to creating a strategic cloud services business within their existing business. It is important to understand the intent of our activities are to clearly know the actual readiness and ability of the VA
KloudReadiness' businesstrakker SaaS platform is designed to help Vendors and Distributors determine their Partners current cloud posture and business readiness to ensure you know which Partners can successfully drive cloud services sales and produce results today. We capture all the major elements and decision points that need to be weighed and vetted prior to a decision to invest are known so that your sales, marketing and engineering enablement activities create the desire
It’s true - we are all being disrupted, and we think it’s the Cloud or the Internet of Things (IoT), but in reality it’s our customers and prospects who are disrupting our businesses. The cold hard truth is that they prefer to consume IT Services these days by the glass - our culture is just plain getting used to paying for things monthly and it’s affecting all of us. I know that most of us are not seeing a cataclysmic shift just yet, however, be assured the shift is happeni
The next wave of technology is upon us – the Internet of Things (IoT) is coming fast and furious and all of the talk is turning to action. Wow, you’ve just barely started to figure out what you’re going to do in the Cloud and now this! What’s a technology service provider to do? Well, first and foremost it’s to ensure you’re going to be a player in the Cloud Service arena. Without a play in Cloud you’ll be hard pressed to take advantage of the IoT explosion based on the sp