Renaissance VAR To MSP Program
5 Easy Steps to Becoming an MSP
The IT Environment is rapidly changing, and with it the VAR is also shifting into something new. The new focus for VARs is the focus on recurring revenue rather than one off sales, making more revenue for the business over a longer period of time and with less expenditure on sales. This changes the traditional VAR into a Managed Service Provider (MSP). The main question is how do you structure your business to attract more of this kind of sales?
We have picked up on a pattern emerging from our work with both VARs and MSPs as to how VARs usually make the transition into MSPs. Here are a few insights into the topic of the VAR-to-MSP transition:
Change Strategy
Going from a VAR to MSP requires setting your goals, documenting your strategy and persistence until deployed! Ease into the change by offering options and new products for customers with a MSP first strategy. Maintain traditional models during transition and ensure all staff on board!
Package Products
One key part of successful MSPs is packaging your offers to suit the requirements of the businesses you’re serving. Show clearly what it is you are offering and the problems it solves. Create standardised, quality solutions from internal brand or white label innovative products.
Financial Solutions
Moving from a traditional license and maintenance model to a MSP-based model will mean big changes for business cash flows - financial processes/systems may need changed. Realign sales compensation packages to encourage behaviours that support the move to MSP.
Automate Processes
Creating manageable customer relationships for your business is the new "post-sale" so User experience is key to success. To do this, it is appropriate to automate system deployments and support agreements. This should be reflected in your SLAs
Find Your Audience
When everything else has been put in place it's time to market your MSP, focusing on the unique aspects of your business and why the target consumers need you. Concentrate on what sets you apart from others in the industry and highlight that uniqueness.