Article | May 4, 2017

Switching From VAR To MSP

Source: Datto Inc.
VAR to MSP Transition

The value-added reseller (VAR) business isn’t what it used to be. Competition on pricing is intense, and profit margins have become thin. As a result, some VARs are looking for ways to diversify their offerings and generate new revenue. For many, that means delivering managed IT services.

Managed service providers (MSPs) deliver the ongoing monitoring of their customers’ IT environment for a monthly fee or MRR (monthly recurring revenue). For VARs that are used to one-time interactions with clients, this is a very different model. As such, the transition over to the proactive business of managed services can seem like a challenge.