Managed Services Market Is Booming
But, often, VARs are unprepared for the reality of switching roles. Many lack the business expertise and technology infrastructure to move from a manual to an automated service delivery model.(Page 2 of 2)
Small VARs eager to tap into the managed services market, but leery of high upfront costs are the main customers of Do IT Smarter, a San Diego-based MMSP.
The sign-up fee includes training that helps VARs learn about managed services, how to succeed, and how to tailor managed services to their business, said Don Begg, the companys CEO.
Begg added that VARs receive technology training and learn about establishing SLAs, marketing, collateral, pricing, help desk, contracts, and selling their services.
In return, VARs gain the opportunity to earn between 30 and 60 percent margins, said Begg.
Managed Services Will Grow More Critical to Channel
Demand for managed services will rise for at least the next two years as businesses seek to control costs, but channel partners will need to sharpen their execution and sales skills to capitalize on the managed-services trend, according to a new research report on the managed services market from Forrester Research.
Faster technology change, an impending long-term growth cycle for IT investment (despite the current economic downturn) and the increasing cost of capital will drive many businesses to managed services, wrote Forester analyst Henry Dewing in the report entitled Market Overview: The Broad Opportunities in Managed Services.
Dewing identified four major managed-service categories in the report IT infrastructure, network and telecom, applications and security and noted that such services can be offered either on-site or as part of a network. Telecommunications has emerged as a top managed-service area as businesses increasingly seek to minimize IT management and costs and instead focus more on their core business processes.