MSP’s and VAR’s,,,, It’s All About The Cloud!

In our previous article, written by my colleague Andrew Banning, It’s The Cloud Stupid! we explored the business threats facing MSP’s and VAR’s especially in regard to ever increasing customer demand now for cloud services and how this is leaving the business models of many established MSP’s and VAR’s under threat.

The major concern highlighted in the article was the almost inevitable decision by one of the vendors, (almost certainly Amazon first with AWS), to go direct to VARs/MSPs customers and bypass the channel and I agree, this is very likely to happen.

When it does it will pose many questions, not only for the other cloud vendors but also the owners of MSP’s and VAR’s, whether they are already offering cloud services or not; but the audience for this article is the owner of MSP’s and VAR’s so let’s explore the threats and challenges currently faced by the owners of these businesses.

Now in terms of the challenges to come and the increasing customer demand for cloud based services, within the channel there are really only 2 types of business; those offering cloud based services and products and those who don’t. Now although those not currently offering cloud based services are behind those who do, that does not mean that they do not share the same challenges.

So just how do the owners of MSP’s and VAR’s prepare for what looks like the inevitable, the vendor model of taking cloud products and services direct to their customers? Well firstly there will be the battle for market share and the effective new business development campaigns required to take cloud products and services offerings out to targeted verticalised markets; but few will realise just what will be involved in building these successful campaigns, those that are going to be required in order to increase your customer base, but it will include all of the essential skills-sets and processes below:

• In the post GDPR world; the ability to build your target customer database which will also include the ability to find the contact details for the decision makers within your targeted verticalised market.
• Building a genuine and marketable USP for all your targeted vertical markets; one that will be perceived as adding value by your target customers.
• The ability to write and construct the content and direct marketing messages required to engage with your target audience, build trust and ultimately secure their business.
• Identifying the delivery platforms for your campaign messages and building the delivery schedule to ensure that your marketing messages get read by the target audience.
• Ensuring that you can analyse engagement with these marketing messages and follow up appropriately, in order to begin building and developing your relationship with your targeted customers.

And if all this wasn’t enough, for those not already transitioning their business to a cloud services provider, you have the building of the financial model required within your own business; remember, the cloud services model, although extremely lucrative does not pay in the same method as the traditional model of supplying and supporting hardware and on-site infrastructure business models.

Although there is much to do, the pace of change in our industry – and the need for adaptation of our business models accordingly, if we are to remain relevant and profitable - has always been a key challenge for IT services companies. And with the changes we’ve seen in recent years, with falling hardware margins, the advent of the public cloud, the opportunity for many VARs/MSPs to launch their own private cloud models and the ever-growing challenges and opportunities around cyber security, there has never been a time of more change in the industry.

But for those IT services companies embracing quickly the changes in demand from customers towards cloud products and services, there is the potential to secure a highly lucrative, sustainable “recurring revenue” business model and to also meet head on the business threats undoubtedly coming their way. The benefits of the monthly recurring revenue model are well documented and of course include enjoying a known and pretty much assured monthly income level which, (as you grow off the back of the new business development initiatives required to gain market share), lessens the constant pressure of finding new business every month.

And of course the strength of your renewable contracts database is fundamental to the valuation of your company moving forward – this will be paramount to any investor’s decision to part with their money, whether you’re looking to ultimately sell the business or for an investor to fund your next stage of growth.

However, in order to get here there will be much work to do, both in terms of building and delivering the sales, marketing and new business development campaigns required to build your customer base, and in terms of understanding the immediate financial challenges involved in transitioning over time to a cloud services provider.

Luckily though help is available to the owners of MSP’s and VAR’s wondering how to overcome these business challenges and secure the future of their business. During the last 3 years my professional colleagues and I have been working consultatively with the owners and senior directors of MSP’s and VAR’s, constructing the strategies and building the highly specialised and verticalised campaigns required, in order to take public, hybrid and private cloud solutions to target verticals in the SMB sector, including the financial services, law, accountancy, independent schools, pharmaceuticals and recruitment sectors.

We have existing, highly effective and proven sales, marketing and business development campaign modules ready for your business that have already been utilised to sell cloud based solutions. We have also consulted on and built business plans for transitioning your business to a cloud services provider.

My fellow directors and I have over 40 years combined experience in growing businesses and can deliver sales, operational, business development and marketing experience that is IT sector specific, straight to your door.

We know how to build these models, they are “Current” and continually evolving, we know how to target and speak to the decision makers in your target markets and most importantly, we know how to grow your business and make you money!

If this post has resonated with you and you would like to explore how we can help you achieve your growth aspirations, or indeed in the process of transitioning to a cloud services provider, then please do not hesitate to contact myself or my colleague Andrew Banning on 0118 947 1010, or email us at janeg@virtuosoconsultancy.co.uk or andrewb@virtuosoconsultancy.co.uk

For more information about our services please visit www.virtuosoconsultancy.co.uk

To read more posts covering all aspects of sales, marketing and business development for MSP’s and VAR’s, please visit our blog; https://it-business-growth-strategies.blogspot.co.uk/