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For Managed Service Providers (MSP) and Systems Integrators (SI), a large portion of their profit comes from services revenue. A major factor affecting profit is Labor Utilization optimization. This article points out the choices MSPs or SIs have when deciding how...
Build Your Own Cloud Services or be a Cloud Services Reseller?
If you’re not already offering cloud or managed services, you’ve probably got a plan to. Cloud and managed services mean recurring revenue, higher profit margins, competitive differentiation and stickier relationships with your clients; what’s not to love about cloud and managed services?
One of the next questions is: “Should I build and brand my own cloud and managed services offerings? Or, should I simply resell existing manufacturer and distribution cloud and managed services?”
CEO of GeNUIT and developer of PROMYS, professional services automation software for technology integrators developed by a technology integrator.
The first business I started was an IT consulting company. Our only product was our labor services and I learned very early that if we didn’t quote a job accurately we couldn’t be profitable. Some of our early quotes were best guesses as to how much time to allocate for the various tasks.