Ten mistakes to avoid in cloud or MSP business model transitions
May 7, 2015Grazed from TechTarget. Author: Crystal Bedell.
While the benefit of recurring revenue makes it worth the effort, transitioning from value-added reseller (VAR) to the cloud or managed service provider (MSP) business model is no easy task.
Solution providers encounter a number of challenges along the way, many of which can be an impediment to success. Here are 10 common mistakes solution providers make while transitioning business models and how to avoid or address them…
Mistake No. 1: Abandoning the idea of a value-add
The biggest mistake channel companies make, according to Jeff Kaplan, managing director of THINKstrategies Inc., is thinking "that the old model of a value-added reseller disappears when you move into the new world of the cloud, when in fact there are still lots of opportunities to be a value-added provider," Kaplan said…
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While the benefit of recurring revenue makes it worth the effort, transitioning from value-added reseller (VAR) to the cloud or managed service provider (MSP) business model is no easy task.
Solution providers encounter a number of challenges along the way, many of which can be an impediment to success. Here are 10 common mistakes solution providers make while transitioning business models and how to avoid or address them.
Mistake No. 1: Abandoning the idea of a value-add
The biggest mistake channel companies make, according to Jeff Kaplan, managing director of THINKstrategies Inc., is thinking "that the old model of a value-added reseller disappears when you move into the new world of the cloud, when in fact there are still lots of opportunities to be a value-added provider," Kaplan said.While the benefit of recurring revenue makes it worth the effort, transitioning from value-added reseller (VAR) to the cloud or managed service provider (MSP) business model is no easy task.
Solution providers encounter a number of challenges along the way, many of which can be an impediment to success. Here are 10 common mistakes solution providers make while transitioning business models and how to avoid or address them.
Mistake No. 1: Abandoning the idea of a value-add
The biggest mistake channel companies make, according to Jeff Kaplan, managing director of THINKstrategies Inc., is thinking "that the old model of a value-added reseller disappears when you move into the new world of the cloud, when in fact there are still lots of opportunities to be a value-added provider," Kaplan said.