The IT Service Pro's Ever-Changing Business Model

By Rob Merklinger, VP of Sales, Intronis

It’s often said that the only thing that is constant is change. Anyone who’s been working in the IT channel for more than six months —IT service providers, in particular — can certainly attest to this simple truth. Now more than ever, business models are changing rapidly— whether it’s by choice or chance—and the channel needs to be ready to capitalize on it.

CompTIA’s 5th Annual State of the Channel report demonstrates my point, alluding to the changes that are still to come based on current trends in the industry. The recent report identified two ways that channel firms are adapting their business models to adjust to these changes:

1. The wholesale shift to managed service or cloud
2. Adding a service component alongside their product-based revenue streams

Either approach requires IT service pros to take action and assess their business to ensure it’s on the right track.

Here are a few areas IT service pros need to consider as the business continues to evolve:

• Vendor Partnerships. IT solution providers should constantly evaluate their solutions portfolios. Less is always more, in my view, and solution providers must look at vendor alliances and M&A activity, which is driving industry consolidation, to ensure they have the right mix of vendor partners and best-of-breed solutions in play to address their clients’ business requirements. With a deep understanding of the industry’s competitive landscape, IT solution providers will be able to leverage synergies between vendor partners to grow their businesses.
• Tech-Savvy End-Users. Because today’s end users already understand many of the benefits associated with mobility, the cloud, Big Data, and other technologies, and have access to a plethora of information on the solutions they desire, IT solution providers need to be much smarter about how they sell technology to their clients. Case studies and use-case scenarios are great sales tools and can help IT solution providers better articulate why a particular solution is ideally suited to solve a specific business problem.
• Staff Training And Development. Another important element when embracing new business models is the IT solution provider’s ability to have the right staff in place to help bring more complex technologies and solutions to market. Business and technical training are extremely important to this, and IT solution providers should look to hire staff who already possess the technical expertise and desired vendor certifications, as well as invest in the right mix of training to set up their teams for success when it comes to the technical, business, and marketing aspects of their jobs.

There is no doubt that the coming year will bring even more change to the IT channel. As in years past, the most successful IT service providers will be those who anticipate change, closely monitor industry trends, and continue to do what they do best—adapt their business models and keep their focus on their team and the needs of their customers.

Rob Merklinger is vice president of sales at Intronis, LLC a Boston-based provider of world-class backup and data protection solutions for the IT channel that was acquired in October 2015 by Barracuda Networks. He is an experienced software sales leader with a proven track record for driving success and developing sales talent.