Recently while touring the home of a famous sculptor, I stopped to admire a scene depicting a general on horseback. I was surprised to learn the artist only created the sculptured person in the scene. As it turns out, the horse and surrounding items were commissioned by a team of other artists. But together, they formed a single work of art. This is a bit how our service channel works, with technology solution distributors (TSDs) and managed service providers (MSPs) specializing in different services and solutions. Each provider brings a unique set of resources, skills and expertise to the table. For example, TSDs enable independent technology advisors to specify and quote a variety of communications and technology solutions, from a single portal complete with sales technical support and training. TSDs typically offer more access to service providers and solutions than an individual technology advisor can provide, along with higher residual commissions. Meanwhile, businesses hire MSPs to oversee some or all of their IT needs, so they can focus exclusively on delivering their primary products or services to customers. MSPs are an important part of our channel because they form strong long-term relationships with end customers. There are seven areas that MSPs manage, including: • Full or partial outsourcing of device, network and cybersecurity management and maintenance. • Developing and maintaining practices and procedures to protect customers from digital attacks. • Cloud services including virtual software, platforms and hosted infrastructure. • IT procurement, device management and/or IT helpdesk support. • Managing remote access to communications services and applications. • Onsite and field tech support, for rapid response troubleshooting. • Managing all types of network connectivity to ensure the effective and secure flow of data to all applications. On one hand, there is a massive market opportunity for participants. Forecasters predict the annual spend for all goods and services within these categories will be approximately $1 trillion in the U.S. in 2024. More than $150 billion will go toward outsourcing the management of all that spend. However, there is also plenty of competition, especially for MSPs that serve small to mid-size organizations. Large national MSPs, cloud MSPs, cable and telco carriers and cybersecurity vendors are all vying to sell directly to end customers. As a result, offering a single solution or service is no longer sufficient to fend off competitors. In addition, not having a particular managed service could open the door for another MSP to provide that service to the end customer. This is where TSDs come into play, by helping MSPs fill the gaps in their portfolios. TSDs enable MSPs to offer wireline and wireless network access from communications service providers (CSPs) like NHC anywhere in North America – all managed by one team, via a single portal with one invoice. There are hundreds of potential network access options from dozens of carriers for customers to choose, based on geography, pricing, application and carrier preference. MSPs can also leverage network service providers (NSPs) like NHC to offer voice solutions like UCaaS, without having to add extra supporting staff. Technologies such as SD-WAN are continuing to evolve. No single SD-WAN equipment manufacturer offers an end-all solution for every application. There are many core and edge cybersecurity services that MSPs can use to manage these solutions for customers, leveraging the monitoring tools and 24x7x365 staff of the NSP. Ultimately, MSPs need to offer options – and TSDs open the door for the MSP to dramatically expand their solutions portfolio and generate substantial residual revenue streams. Conversely, TSDs need MSPs for their technical skills and unique knowledge of their end customers’ network requirements. SD-WAN and cybersecurity services are sophisticated and featurerich and require either end-user technical ability or access to an MSP. At the end of the day, MSPs can more effectively meet the needs of their customers by teaming up with TSDs – just like artists collaborating on a single sculpture. In doing so, MSPs can also gain access to NSPs like NHC that provide all aspects of network solutions. Our value proposition is much stronger together than serving customers separately. TSDs complement MSPs far more than they potentially compete against them. o Glen Nelson is a 40-year veteran of the telecommunications industry and is co-founder, VP marketing & business development at NHC, THE Communications Stack Provider and one of the largest partner exclusive network resellers in North America. Stronger Together: MSPs & TSDs By Glen Nelson How MSPs can sell more solutions and generate residual income by partnering with TSDs THE Communications STACK Provider™ 46 CHANNELVISION | MAY - JUNE 2024
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