 | |||||||||
| |||||||||
 | |||||||||
Tips for Shifting Gears to Sell Managed Services
There was a time not that long ago when information technology (IT) resellers could think almost exclusively in terms of hardware and software sales. If a company needed a server, a reseller could provide a host of server options; if a company needed an enterprise-class e-mail solution, resellers had a plethora of offerings from a variety of companies to fill such a need.
IT today is a different beast entirely. Increased overall complexity, tightening budgets, and a daunting web of government and industry-specific regulations have created an environment where companies need more than just a software and/or hardware provider; they also need the means by which to update, maintain and manage that hardware and software once it's installed.
Additionally, the emergence of open-source collaboration and development projects have resulted in offerings - the Linux operation system being perhaps the most notable - that cost next-to-nothing in terms of licensing and, though popular, don't necessarily represent lucrative solutions for resellers to promote.
The result of all this increased complexity, regulation and availability of open-source products has been an increasing emphasis by resellers to promote managed services, which can be thought of as a type of outsourcing of IT expertise and management in an effort to improve overall operations and reduce costs.
Making Adjustments
In addition to their traditional roles as solution providers, resellers are recognizing the need to provide services for ongoing support of those solutions and act more as a hands-on IT management arm, a reality to which some resellers are having a challenging time adjusting.
"From a traditional reseller perspective, many of the challenges stem from the history of the market," said Jay Johnson, vice president of managed services practices for Omaha, Neb.-based MSI Systems Integrators. "Selling hardware and software products have traditionally been the driving force behind such businesses. Given that, it's tough to adjust the mindset to a managed-service market, which is new and emerging. However, some resellers may not have yet recognized it as a potential driving force behind their business."
One of the primary difficulties resellers encounter when considering expanding to provide managed services is they find they don't have the in-house IT expertise and professionals to support such a endeavor.
In other words, reselling entities are ideally positioned to sell solutions but, while they may also offer some services designed to support those solutions, they don't necessarily have the personnel on hand who can manage a customer's IT infrastructure from top to bottom. Some of the components for providing such a comprehensive offering are present in traditional reseller organizations, while others are sorely lacking.
"What we're seeing among resellers is the realization that they themselves can't always provide everything that's necessary for a reliable managed service solution," said Johnson. "They might not have the business infrastructure in place to support something that complex and comprehensive. So there's a kind of symbiotic relationship building up between resellers and established managed service providers. It's a mind shift to think of a reseller selling the services of a service provider, but so far it's been working well."
Patience and Research
Managed services actually present resellers with a whole new area of IT to capitalize on, allowing them to continue selling hardware, software and service support for both, but also a whole new, comprehensive tier. The trick, according to Johnson, lies in resellers recognizing the nuances of differences between selling a service rather than a tangible hardware or software products. The key, he says, is patience and research.
"A managed service sale is often a lengthier, more complex sales cycle than a traditional hardware or software sale," said Johnson. "You have to think in terms of service levels and service packages, and you have to know the specifics of each of those levels or packages so a fully informed sales consultation can be made. You're basically selling the management and upkeep of a customer's IT infrastructure, rather than selling them a component of it, so resellers have to make a very strong case. What's helpful is to understand that a managed service sale is a kind of lifecycle within the sales cycle itself."
It can be a tricky proposition convincing a company to essentially hand over the reins of its IT infrastructure to a third party, but the benefits include reduced complexity and in-house IT personnel needs. Doing so can also bring peace of mind as the company knows its IT department is in the hands of an IT managed-service provider that has a deep and experienced pool of experts who know about the IT world generally, but also the customer's IT needs specifically, down to the last bit and byte.
Additionally, managed-service providers are in an ideal position to keep up-to-date on government- and industry-mandated regulations, taking that particular burden off the shoulders of organizations that want to stay focused on their business needs, not their IT needs.Knowing Their Audience
Managed services aren't for everyone, and resellers should recognize those who would likely be interested in such services as are typically found in the small and medium business (SMB) space, since larger enterprises usually have the financial means, personnel and business interest to keep their IT management and upkeep in-house.
"As with any sale, resellers have to know their audience," said Johnson. "Resellers have to be able to recognize when a managed service sale may be an option, and when it probably isn't. Every sale is unique, which isn't a secret. The managed service sale component can make each sale a bit more complex, but it is also that much more valuable for the customer."
Email
Print
Mobile