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Office 365:Making Money With Managed Services
Jeannine EdwardsDirectorConnectWise Community
CLD03
Lisa SlimMicrosoft Alliance Business Manager
Hewlett-PackardMPN partner since 1989HP Enterprise Business
Ro Kolakowski
Company Partner
6th Street Consulting
MPN partner since 2006
SharePoint
How We Will Spend Our Time TogetherWe’ll look at…
Why Managed Services is essential to the profitability of your cloud business
Which key business components add the most leverage for an MSP
What 5 actions you can do to build your managed service practice
Source: Everything Channel State of Market, 2010
The Typical Managed Solution Provider
25%
21%
54%
Hardware
Software
Services
Time In Business 8 Years
Length Of Customer Relationship
7 Years
Revenue From Existing Customers
72%
# Of Customers 180
Vendors Per Technology Category
2-4
$3.3M Total Gross Revenue
May Resemble One Of Four Business ModelsService VAR Category Core Revenue Source
• Resell Product Time & Materials Traditional VAR
Product Sales• Support Product
• Product To Pull Technical Services
Solution VARProject/
Professional Services• Technical Services To Pull Product
• Professional ServicesMSP / T&M Hybrid VAR
RecurringService Sales• Professional Services To Pull Technical
Services
• Independent Software VendorSolution VAR Consulting
• Consultant/Influencer
Recurring Service Sales
• Predictable annuity based revenue
• Consistent use of resources
• Manageable budgets
• Pro-active opportunities
• Sticky relationships
• Increased company valuation
Resell
Managed Services
Cloud
Resell
Managed Services
Cloud Business Is Just A Managed Service
• Customer Relationship Management (Updates, etc)
• Ent. Application Management (Line Of Business, Server Side)
• Desktop Application Management(Microsoft Office)
• Network Infrastructure Management (Routers, Switches, etc)
• Help Desk
Top Managed Services
• Tools(BDR and antivirus)
• Applications(Hosted Exchange, hosted SharePoint)
• Infrastructure(Storage, data storage, security)
• Virtual Desktops(End user experience in the cloud)
• Vertical Market Software(healthcare, financial, legal)
Top Cloud Managed Services
If it can be monitored and managed...it can be put on a contract
Key Leverage Points Determine Success
• Expand To Larger Customer Base
• Initiate Longer Contracts
• Set Minimums, Charge For Value
• Radiate Your Services
• Aim For Shorter Sales Cycles
• Improve Service Process Efficiency
• Automate With Tools
• Remote vs. Onsite
• Develop Repeatable Business Processes
• Drive Sales Efficiency
• Implement Effective Comp Plans
• Outsource or Partner for “A”
• Maximize Billable, Minimize Support
Drive More Revenue Minimize COGS Control Expenses
Back to Basics: Revenue – COGs = Gross Margin – SGA = Net Profit
MSP and Cloud Profitability: The Big FiveDefine & Execute A Strategy For Growth(Don’t “Wish” It)
Sell Beyond the IT Department (Paradigm Shift)
Pursue New Technology Solutions Opportunities (RMM + Cloud Offerings)
Invest Back Into Your Service Capabilities (Professional Service Automation)
Tune Your Skill Set Mix(Evolution Not Revolution)
Source: CompTIA/MSP partners
Recurring Revenue Practice
Define & Execute A Strategy For GrowthMSP & Cloud Profitability: The Big Five
Who Owns…
• What we sell & how we package It
• How we migrate customers efficiently
and effectively
• What skill set we invest in
• How we drive profitability
• Where we’re going and what we do
• The customer relationship
• Customer satisfaction
• How visible we are the customer
• Customer support
• How we evaluate our approach and evolve accordingly
Back End Support
Process/ Infrastructure
Service Delivery
Business Management
Planning & Strategy
Finance
HR
Admin
Customer Engagement
Marketing
Sales
Implementation
Support
Technologist
Business Advisor
Shift Your Paradigm
Cu
stom
er V
alu
e
Business Evolution
Technologist
• Here’s how the technology works
• Implement…and Manage
Business Analyst
• Understanding Business Objectives
• Creating Efficiency and Productivity
Business Advisor
• Stickiness
• Sustainability
• Grow their business…and yours
Business Analyst
• Trusted Advisor Relationship
• Helping Customers Proactively Manage Risks & Costs
• Unique understanding of Specialized Technologies• Exceptional Technical Support
• Fast Turnaround and delivery
• Trusted Advisor Relationship
Pursue New Technology Solutions
+Remote Monitoring & Management Cloud Offerings
Without ConnectWise
ChaosWith ConnectWise
Control
Invest In Service Capabilities
The Impact on Your Business: Technology
Managed Services
68% 72%
Invoicing
51%59%
PSA
60%69%
RMM
42% 46%
SLA
65% 65%
Systems Management
57%63%
TroubleTicketing
Average
BIC
CloudAverage
BIC42%
68%
46%
62%
48%
65%
38%
62%51% 56%
45%56%
Invoicing PSA RMM SLA Systems Management
TroubleTicketing
Technology Adoption Rates:Increase Of Best In Class Compared To Average Companies
The Impact on Your Business: PSA
Anticipated Revenue Growth: Next 12 months
Decline Maintain Moderate Hyper-10%
0%
10%
20%
30%
40%
50%
60%
Average
5-15% >15%
19%
1%
13%9%
34%
54%
34% 36%
Tune Your Skill Set MixTraditional Solution
Provider Managed Service Provider Cloud Integrator
4. Marketing
1. Technical: Monitoring
5. Technical: Monitoring5. Marketing
2. Marketing
4. Sales
2. Sales
3. Sales 3. Business: Consulting 3. Business: Consulting
1. Business Consulting
2. Technical: Consulting
4. Technical: Consulting
1. Technical: Break/Fix
5. Technical: Break/Fix
MSP and Cloud Profitability: The Big FiveDefine & Execute A Strategy For Growth(Don’t “Wish” It)
Sell Beyond the IT Department (Paradigm Shift)
Pursue New Technology Solutions Opportunities (RMM + Cloud Offerings)
Invest Back Into Your Service Capabilities (Professional Service Automation)
Tune Your Skill Set Mix(Evolution Not Revolution)
Source: CompTIA/MSP partners
Infrastructure
Vendor Management
Professional Services
Internal IT Department
Security
Remote Monitoring and Automation
Voice Networking (VoIP)
Help Desk
Software as a Service (SaaS)
Storage, Backup and Disaster Recovery
Digital Signage
Hardware as a Service (HaaS)
Surveillance
Email Management and Administration
Telepresence
Printer Management
Website Management Mobile Telecommuting Cloud Services
Office 365 Go Do’s
At WPC After WPC Moving Forward
Enroll In Cloud
Essentials
Learn About Office 365
Determine How You Fit
Build An Attached Service
Business
QuickStart for Microsoft Online Services: A partner onboarding experience
www.quickstartonlineservices.com
© 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to
be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.