This company’s break from conventional managed services contracts and programs was a key to achieving double-digit revenue growth.
Just about any VAR that makes the decision to start selling managed services runs into some obstacles along the way. Some move too quickly and learn the hard way that it can take nearly two years for monthly recurring revenue streams to catch up to and overtake project-based revenue. Others run into roadblocks with their commissioned salespeople who balk at the idea of trading an immediate large cash bonus for a small monthly recurring commission spread out over a year or more. For VAR-turned-MSP Vision Computer Solutions (VCS), neither of these scenarios was the biggest issue. VCS’ leadership team was not aligned on some basic principles that make up managed services contracts, including the length of the contracts, the litmus test to determine whether a prospect qualifies as a managed services candidate, and how much flexibility should be permitted with contracts. Ultimately, the foundation for VCS’ services was rebuilt when two-thirds of the leadership team made the decision to move on to new opportunities in late 2013. Going into 2014, VCS experienced a slight dip in monthly recurring revenue over the subsequent seven months. However, led by the strong leadership of the company president, David Marino, VCS reorganized, implemented key policy changes, and experienced its strongest year-over-year growth the following two years.