“Seismic” Events in IT Services


Tough Economic Times Aren’t The Apocalypse by Justin Crotty

Though nobody can question the fact that tough economic times are upon us, there is reason for optimism.  I shook my head yesterday as the Fed “announced” we have been in a recession since last December and stocks took a major dive.  Tell us something we didn’t already know.  Amazing – the fed tells us something we’ve known for months and suddenly we lose confidence and stocks tank.  I will never understand the stock market.

But I digress.  The good news for managed service providers and other IT solution providers who are pursuing recurring revenue services and software offerings is that tough economic times give us all an opportunity to present a strong value proposition to end customers who are having a difficult time. 

Here’s how:

1) Managed delivery models reduce costs for end users to deliver quality IT management with solid SLA’s.  The ability to reduce the monthly spend for a prospect will get them to listen to you today.

2) The predictability for the end user to consume IT services in the managed form factor allows for fewer surprises and an ease of budgeting that many end users will find helpful in these times.  If I know what my spend will be each month over a contract period, I feel better about making decisions today, especially if that spend is less than what I am paying now.

3) Marketing and differentiation are more important than ever.  Solution Providers who are not focused on marketing and selling their unique value proposition are missing a key opportunity to take business.  Sell the value prop and sell your capabilities – why are you unique?  Why should the end customer work with you?  What do you bring to the table that nobody else does?  It tough economic times you can win business by demonstrating value and properly marketing it.

Focus, effort, and creating value are always key drivers of success in the IT space.  Those are still the tools to use to win business in a tough market, and tough markets present opportunities to those who take advantage of it.

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1 Comment so far
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The future is bright for all things managed or hosted. Business Technology as a Service will likely increase in adoption during 2009 — motivated initially by the need to conserve capital, then by the desire to free-up time to devote towards creative applications for new technology.

David
Business Technology Roundtable
http://business-technology-roundtable.blogspot.com/

Comment by David H Deans




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