Reseller-to-MSP Transformation Accelerates Revenue Growth and New Customer Wins
. These playbooks distill best practices executed by channel partners that have successfully transformed themselves into MSPs. Based on comprehensive interviews with around 1,000 MSPs across Americas, Asia-Pacific and Europe, these data-driven playbooks provide an actionable blueprint with insights and benchmarks to operationalize the transformation journey and succeed.
Business Transformation is Complex But Delivers Impressive Performance Gains
Channel partners selling technology solutions to small and medium businesses (SMBs) and large business enterprises are transforming to stay relevant as their customers move an ever-increasing number of business processes and workloads into the cloud. This transformation requires careful planning and execution, and channel partners across all regions are actively seeking guidance on how to manage this process.
AMI-Partners' Business Transformation Playbooks – global and regional editions – provide a systematic 8-step execution roadmap for success.
"This transformation requires carefully architecting the initial cloud and managed services portfolio against the available customer base, internal technical and sales skills, service delivery tools and investment dollars," said Deepinder Sahni, SVP at AMI-Partners. "However, a well-managed transition does end up quickly boosting business performance."
Benchmarks and metrics reported by MSPs that have undergone successful transformations underscore impressive business performance gains:
- 6X ROI within three years of initiating VAR-to-MSP transformation
- 50 percent of total revenues driven by new customers among top-performing MSPs
- 18-24 months' time horizon to new managed services profitability
- 1.4X growth in size of workforce to support expanded services, revenue and customer base
Business Transformation Drives New Customer Logos and Revenue Acceleration
From less than 50,000 in 2016, the number of managed services providers will grow to almost 75,000 worldwide by 2021. AMI-Partners' tracking of these MSPs indicates most have yet to fully penetrate their existing customer base – on average, MSPs have so far converted only 20 percent of their customers to managed services.
More significantly, by transforming themselves from a reseller to an MSP, 1 in 2 have acquired net new customers that were previously beyond their capacity to serve, thus accelerating revenue growth.
Technology vendors can accelerate this transformation within their partner ecosystem by setting up formalized advisory programs that impart strategic advice via workshops and tracking key metrics with partners on a one-on-one basis.
AMI-Partners' Transformation Playbooks are available at the worldwide level, as well as individually for the U.S., Latin America, Asia-Pacific and Western Europe regions. The playbooks are based on a global study of 1,000 managed and cloud services providers conducted across several leading countries.
About Access Markets International (AMI) Partners Inc.
AMI-Partners specializes in IT, digital transformation and business services strategy and actionable market intelligence — with a strong focus on global small and medium businesses and extending into large enterprises and the channel partner ecosystem. AMI-Partners' mission is to empower clients for success with the highest-quality data-driven insights, business strategy perspectives and go-to-market tools and solutions. Founded by Andy Bose, the firm has built a cross-disciplinary management and analyst team with deep experience cutting across established and emerging markets.
For over 20 years AMI-Partners has helped shape the go-to-market SMB strategies of more than 500 leading IT, telecommunications and business services companies. The firm is well known for its IT and cloud adoption-based segmentation of the SMB markets; its annual retainership services based on global tracking of SMB and enterprise buying behavior; and its proprietary database of SMBs and channel partners (MSPs, CSPs, Hosters and others) in the Americas, Europe and Asia-Pacific. The firm invests significantly in data-driven analytics and insights from several thousand SMBs and channel partners annually and is considered the premier source for global SMB trends and analysis.
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