Technology providers are at a crossroads. They’re facing a new paradigm that demands expansion to take them to a brighter future.
The modern SMB (small- to mid-sized business) isn’t looking to purchase voice from one company, IT from another company and cloud technologies from a third. SMBs are looking to partner with a single entity — a Managed Technology Services Provider (MTSP) — that can service all of their needs. They are looking for capable technology advisors who can handle all aspects of their technology.
This is the biggest opportunity for technology providers, because they can easily evolve from offering single solutions to becoming a true, full-suite MTSP.
By providing all services that touch the LAN — which includes IT, cloud-based technologies, cybersecurity, telecommunications, AV, video surveillance, access control and managed print — MTSPs position themselves for maximum profitability now and into the future. This becomes even more important when every technology can be brought to the customer on a recurring revenue model.
Why should you consider offering converged services as a managed services (MSP), A/V, security or telecom provider?
The most obvious advantage of offering converged services to your customers is that it leverages the most difficult thing to build: customer trust. If your customer likes you, trusts you and already uses a particular solution, such as voice, and now they need cyber security, why would you leave that money on the table?
Your customers will be purchasing that technology from someone, so why not retain that profitability and simultaneously strengthen your relationship with your customer? If you don’t, another MTSP will take that business away from you.
When a technology provider evolves from a single solution to converged IT services (an MTSP), there are tons of opportunities for cross-sell and up-sell, which diversify and strengthen profitability.
One-trick ponies cannot survive in today’s environment. Your transition to becoming an MTSP must occur today, not tomorrow.
Start your MTSP journey
Want to take the first step toward becoming a MTSP? Find a business automation software that allows you to manage all facets of your growing IT business in one platform. Download our PSA Checklist for Technology Services SMBs and start your MTSP journey today.
Guest blogger Brian Suerth, MBA, is the president of the Technology Assurance Group. TAG has over 20 years of successfully transitioning companies into a converged services model. TAG does this by focusing on increasing members’ recurring revenues where it equals operating costs so that additional profitability drops straight down to the bottom line. They work to increase their members’ profitability, in many cases well beyond 25 percent EBITDA. For more information on how TAG works for their members, check out the video: The 6 Shifts to Profitability: How TAG Members Double Their Sales and Drive Over 25 Percent to the Bottom Line.