Magazine Article | June 18, 2013

Who Else Wants To Increase Profitability?

By The Business Solutions Network

Whew! What a month it’s been. Since I last wrote this column, I’ve done a bit of traveling, written a fair amount, had tons of phone calls, and done a lot of reading. Despite the variety of tasks, there was a common theme that presented itself. One that is directly related to you.

Your future is in offering services. Not “service,” as in customer service or fixing broken hardware. I’m referring to offering your solutions “as a Service” for which you charge a monthly fee. All of your business won’t be on this model, but you should get as much as possible switched over.

Numerous industry studies have shown that a small percentage of IT providers are on this model, and most are just dabbling. Even people who call themselves MSPs (managed services providers) aren’t offering as much as they can via this model. A revelation: While Business Solutions magazine has been educating readers on the managed services topic for years, we’ve been neglecting the biggest demographic by doing a lot of expert-level editorials. What about the larger IT segment of people who haven’t made the jump or have but are struggling to make it work?

This reality has been a point of discussion in our offices for a few months, but only recently did it really click with me. Our mission is to educate resellers on how they can make the jump to the more profitable and stable “as a Service” business model. We plan on doing this in a few ways. First, you’ll see many articles in the magazine that focus on the fundamentals of the managed services model. Look no further than this issue where we describe and review professional services automation (PSA) software for those entering the MSP arena. Also, this month’s feature is on a retail POS VAR who’s migrating his business to a recurring revenue model. Rest assured, if you’re an MSP pro, we’ll also continue writing articles aimed at you.

Second, in the last few weeks, our website — in particular our resource center on managed services — has been loaded with what I’d consider 101-level content to help bring the concepts of managed services and recurring revenue models to the masses. If you’re looking for some primers or a refresher, visit

Last, and what we’re most excited about, Business Solutions will officially launch its own event later this year, on Oct. 7, 2013. Titled “Channel Transitions VAR/ MSP Executive Conference,” the Philadelphia-based event is designed to help VAR/MSP executives learn how to best implement and manage the “as a Service” model. Channel Transitions will feature real-world, nutsand- bolts, headaches-and-heartaches discussions and success stories on the transition. In just one day you will:

  • Learn how to fund your shift to “as a Service” without wrecking cash flow
  • Understand effective pricing and bundling strategies
  • Discover how leading MSPs market their business and overcome customer objections
  • Learn the secrets of hiring, training, and keeping your reps focused on selling services
  • Be exposed to new compensation models for reps and techs
  • Demo new products, learn about new channel services, and get quality face time with leading vendors
  • Meet new colleagues and connect with channel leaders
  • Network with growth-oriented VARs and MSPs
  • Walk away with a plan to increase the equity value of your business

If you’re interested in learning more, check out

This event, and our refined editorial efforts, are things I’m very excited about because I firmly believe that we can help you increase your profitability and grow your business. I hope we find, in you, a willing participant in this journey.