Focusing on recurring revenue opportunities and spinning off specialty IT companies were two keys to this MSP’s sevenfold profitability growth over a seven-year period.
Yes, but …” is the response many VARs give when shown the immediate revenue gained from a break-fix IT project compared with the long-term revenue stream resulting from a managed services contract. “Yes, mathematically it makes sense to sell managed services, but we have bills to pay now and can’t afford the risk of making any changes.” Or a similar response: “Yes, I would like to have more predictable monthly income, but what I’m doing is working for now, and I don’t want to disrupt that.”
Chris Canada, CEO and founder of Onsupport, and Randy Steinle, vice president of Onsupport, recall the earlier break-fix days of their company when going after a 1,000-seat Exchange migration and other one-off projects were the unapologetic goal of every salesperson in the organization. That plan worked just fine until the 2008 recession hit and Onsupport saw a major contraction in IT projects. “Customers were no longer committing to any IT projects that couldn’t guarantee a two-month ROI,” recalls Canada. Tough times have a way of helping business owners get focused and get around to making the difficult changes they didn’t have to make before. And, that’s exactly what Onsupport did.