Session panelists included:
- Rob Bissett, vice president of product management at 6fusion,
- Arlin Sorenson, CEO and partner at Heartland Technology Solutions,
- Dina Moskowitz, founder and CEO of SaaSMAX,
- Dr. Roger Channing, senior vice president of innovation and integration, and CTO at Micro Tech and
- Patrick Zimmer, CEO of IT Decision Management.
A common theme throughout the discussion was the complexity of the sale. Whether referring to the shift to selling and supporting recurring services or addressing the continually increasing compliance issues customers face, tackling the changing sales needs of a multi-faceted IT organization can be taxing to many solution providers. Despite the advancements in professional services automation (PSA) and other channel business-specific technologies that allow you to streamline your operations, it doesn’t address the main piece of the puzzle: increasing revenue. The sales people and the processes required to grow the organization require constant development, assessment and management.
Despite internal changes, solution providers tomorrow will need to focus on the same goal as they do today: customer satisfaction. “We’re not selling technology, but the whole solution for our clients,” says Sorenson. “With many of the larger direct sales companies selling product, solution providers can displace them from accounts if they can focus on true business needs.”
Organizations need to employ technologists that understand and can help them address the challenges and opportunities that can make or break their business. It’s a lot more than services and applications, but processes and workflow.
“There is still mystery in the margin with the cloud,” reminds Morris. “In the past, middleware did nothing out of the box but, when implemented properly, it could do everything.” The same principle applies to the cloud and managed services. Solution providers must continue to focus on that aspect in the future, addressing the issues that creep into a normal small business that aren’t addressed by the largest technology companies.
For example, how does a company connect Google Apps to their proprietary software or systems they have major investments in that they are not ready to replace? Those businesses need an experienced integrator, or individual with the skills to aggregate the disparate solutions into a workable platform. The good news is solution providers have an opportunity to continue making money doing what they’ve always done, with additional potential from the recurring revenue service model.
Problem solving skills will continue to be valued by clients, including the ability to address rural Internet connectivity issues. As Sorenson reminds us, the benefits of technology advances can’t be realized in every setting, since “cloud doesn’t work well on dial up.” Providing options and answers to resolve these issues is a true value opportunity.
Trust will continue to be an important element of a solution provider business, creating the confidence clients need to make long-term investments in their infrastructure and support. Commitment levels vary, but each client must have a certain level of faith that you can deliver what they need.
As Channing adds, “Creating trust to build a private cloud can be tough for a $330-million solution provider when compared with a $1-billion VAR, so consider how hard is can be for a $2-million MSP? Leveraging partner relationships and certifications can help, including assistance from distributors and vendors. Microsoft, Cisco and CompTIA all can help overcome this obstacle, but building value and trust typically takes time, keeping commitments and always trying doing the right things when problems occur.
There is no clear cut picture of a future solution provider, but the basic elements that make these businesses successful today will continue to be critical in the future. Communication, performance and skills will likely be just as important in 2020 as they are in 2011.
