According to Onecom Sales Director Roan Pratt MSP leaders must act now to mitigate today’s and tomorrow’s challenges and plan for the long-term with confidence.
While MSPs can strengthen their prospects (and the confidence their customers have in them) by dynamically addressing the requirement to stay ahead of technology trends and fully understanding evolving customer needs, a barrier to progress is the variety of buying behaviours across different generations and business types, believes Pratt. “Evolution in the channel is inevitable but the pace at which different buyers adapt varies,” he commented. “To overcome this challenge ongoing education is crucial. If you fail to meet the evolving needs of all buyers competitors will step in to fulfil those requirements.”
An MSP’s approach to challenges such as these will shape the pace of their own evolution and the value of their business, therefore the way MSPs develop their technology propositions and go to market strategies is pivotal, pointed out Pratt. “We’re seeing channel businesses increasingly expand their product portfolios to maximise monthly recurring revenue through cross-selling and upselling,” he added. “Furthermore, many partners are diversifying their offerings which means acquiring new skill sets and suppliers to support additional products and services. This will also minimise churn, especially at the lower end of the customer base, by either selling more within the existing portfolio or expanding it to keep pace with technological advancements.”
It goes without saying that MSPs at the forefront of industry change have a strong understanding of the issues and market trends reshaping ICT buying preferences. And MSPs that most confidently set the stage for their long-term success will also likely have a strong partnering strategy. “Resellers should partner with the right suppliers who can support their growth and simplify business interactions for both them and their customers,” added Pratt.
Integrating Net Zero planning with the supply chain and the increasing complexity of the ICT market means the channel needs new ecosystems
“This alignment opens up access to lucrative revenue streams and ensures efficient operations. It’s a constant learning journey and down to suppliers and partners to keep providing key information through events, webinars and communications, making sure all information filters through the whole business and not just the top line.”
Net Zero planning
Another big education piece facing all channel businesses is the need to link Net Zero planning with the supply chain at a time when the ICT market is growing in complexity. It’s a challenge that raises the question of whether the channel needs new future-focused ecosystems. “The need to integrate Net Zero planning with the supply chain and the increasing complexity of the ICT market means that the channel needs new ecosystems,” affirmed Pratt. “Everyone is eager to embrace this change but we are still in the early stages of figuring out how it will work. Conversations with suppliers and customers are crucial to determine the best fit for all parties. While it’s too early to define exactly what these ecosystems will look like we must stay ahead of any emerging complexities.”
This challenge is perhaps made easier to address given the growing number of companies seeking to consolidate their products with a single supplier to streamline their supply chain operations. “This approach allows them to focus on growth with one supplier,” commented Pratt. “We are supporting several partners who are looking to expand and experiencing the benefits of working with us through organic growth and acquisitions. But the primary challenge is the need for rapid adaptation to market evolution and demand.
“Those who can get ahead of the curve will maximise market opportunities. Success depends on not only winning business but also delivering on promises. While many are good at discovering potential, some struggle with actual implementation.”
Pratt’s four point action plan
1. Choose the right supplier: Partnering with a supplier that aligns with your growth ambitions is crucial.
2. Education and understanding: Both internal and external education are essential for staying informed and competitive.
3. Delivering on promises: Deliver on what you commit to.
4. Strategic partnerships: Working with partners who share the same growth goals and are willing to invest in them is vital.