Double-Digit MoM Growth? MSPs Need A Hero (Application)

In today’s managed services market, it’s often not the number of cloud services you offer (at least not at first), but how you go to market with them. That’s what CANCOM, a leading managed service providers in Germany and Austria, discovered as it launched its cloud marketplace. When CANCOM switched its focus to several well-known “hero” applications, they began to see double-digit month-over-month growth.

CANCOM’s Manager Business Development Public Cloud, Christin Hanneken, recently sat down with Maeva Riley, Product Marketing Manager at AppDirect, to discuss this success, as well as the challenges that come with moving to the cloud, offering value-added services beyond software subscriptions, the importance of assisted sales, and more.

Q (Maeva Riley, AppDirect): CANCOM has been selling SaaS and IaaS since 2015, which in our business is a relatively long time. How did CANCOM know to jump into the cloud market so early on?

A (Christin Hanneken, CANCOM): It was an easy decision for two reasons. First, we moved into the cloud together with our vendors. Important partners like Microsoft—which started its CSP program in Europe in 2015—and Symantec or F-Secure moved to the cloud. They expected us to sell their cloud services, so that’s what we did.

Second, the margins with cloud services are so much better. Traditional services have maybe have a margin of three to five percent. What do we have in CSP? It's 20 to 30 percent, which is obviously a big difference.