“Seismic” Events in IT Services


MSPs Bullish and Investing in Demand Generation by Jason Beal / Ingram Micro
July 18, 2008, 10:21 am
Filed under: Ingram Micro, Managed Services, People | Tags: , ,

In the last month I’ve met with three solution providers from different regions of the country (Southern California, Arizona, and Minnesota) who are all very bullish about building their managed services business.  All three are very optimistic about their prospects of significantly growing the number of end-customers on managed services contracts.  Coincidently all three solution providers quoted me the same metric that they were shooting for: to triple the number of end-users on managed services.  Two partners wanted to accomplish this goal in twelve months while the other partner was shooting for eighteen months.  These partners current have between 18 and 42 clients on managed services agreements.

 

In order to accomplish this goal the three partners had plans to invest in aggressive demand generation programs.  While solution providers have traditionally been reluctant to spend dollars on marketing and lead-generation programs, a new breed of confident, aggressive, and marketing-savvy managed service providers is emerging.  These MSPs are focused on customer acquisition and are investing dollars via traditional marketing techniques as well as via on-line, viral marketing avenues.

 

Theses partner believe in the MSP model, have properly ‘merchandized’ their managed services offering, have trained a portion of their sales team to effectively position managed service value proposition to customers, and have developed the efficient operations to profitably scale their managed services practice. They are confident that investment in marketing and lead-gen will yield a healthy return and allow them to quickly build their business. 

 

The managed services land grab and gold rush is on.  MSPs are starting to aggressively market their managed services in their local areas; others are acquiring solution providers in order to flip their customers bases to managed services, while others are opening remote offices to grow their customer bases. Now is the time for solution providers to invest in marketing and demand generation programs to grow the business.

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