Can VARs Survive If They Don’t Adopt Managed IT & Cloud Services?

What is the role of the reseller as the cloud replaces physical technology? Value-added resellers used take 40 percent of sales from hardware, but now there is less and less hardware to sell. This means VARs have to change or they will go out of business. Migrating from a sometimes needed offering to a totally outsourced technology services model is not a new concept. Quite frankly, the last 10 years have year shown a massive shift in the global market to a consolidated service provider for most if not all technology. Providing services to clients is key for success, and products that provide business solutions have become far more important to them.  

There are many facts that support this notion that if VARs do not migrate to MSP (Managed Services Provider) or CSP (Cloud Services Provider) they won’t be around for the long haul. Here is a pretty big one: Cloud services are taking ever-larger shares of enterprise IT’s storage, applications, and computing. The global infrastructure-as-a-Service (IaaS) market is projected to grow from $23 billion in 2015 to $34 billion in 2018, with a Calculated Annual Growth Rate (CAGR) of 10.27 percent. Software as a Service spending will show a  CAGR of 8.14 percent in the same period, according to  Technology Business Research.

A large portion of VARs  have already completely migrated their entire business model , according to research by CompTIA published in July 2015, with about 40 percent actively shifting to consulting services as a main activity. That means if you are a VAR who hasn’t event investigated a business model change than you are effectively late to the game and are running out of time to make a shift or they will struggle to stay alive. Many other verticals like copier, point-of-sale, security, and others are also moving to the MSP/CSP space making it that much harder for a tradition VAR to generate the necessary revenue to stay around.

MSP/CSPs are the experts at helping their customers succeed, developing business solutions involving platforms, ranges of products, and customer service.  A MSP/CSPs are trusted consultants to its clients, rather than just a product vendor. It’s all about delivering business outcomes rather than a box or a one-time solution. The kind of solutions that attract MSP/CPSs interest is different. MSP/CSPs have a particular interest in turnkey products — solutions that have evolved to a point in which they offer full-scale solutions to clients, rather than just fulfilling technology functions.  

BVoIP offers just that kind of offering! BVoIP provides a fully streamlined Cloud Unified Communications platform, with complete out-of-the -box Unified Communications services like PBX, Fax, Presence, and massive integrations into the systems your customers rely on to operate day-in and day-out. BVoIP does all the heavy lifting taking away a huge effort in infrastructure investment, up-keep, and ongoing labor away so that you can concentrate in providing a solution and experience for clients while retaining control over the client relationship. It’s an offering that’s entirely adapted to the MSP/CSP role, as it offers business solutions — simplified maintenance, slashed costs, and total mobility for employees. Interested in partnering with BVoIP?