Customers can be fickle. Sometimes they want a service provided to them, sometimes they want to do it themselves. Sometimes you go to the buffet, and sometimes you want a waiter. How do organizations deal with this fluctuation of needs?
At ScienceLogic, our partners are able to add value no matter what the need, and make their customers very happy. Over the years, ScienceLogic has established a robust channel with our managed services customers. Our MSP partners use the ScienceLogic platform to provide network and hybrid cloud discovery, monitoring, automation, and guaranteed uptime. Providing these mission-critical services to our partners allows them to create new revenue streams by charging a premium for these services.
Our partners have significantly grown their services businesses over the past few years, and many credit part of their growth to their partnership with ScienceLogic. Hybrid cloud management has become a particularly hot topic in recent years. In fact, Gartner’s list of 2016 Key CIO Initiatives ranks cloud projects at number two. Our partners want to participate in this market which is growing 30-40% per year.
Our MSP customers have exclusive access to ScienceLogic’s JumpStart program, which is designed to teach MSPs how to monetize their network monitoring and management services using the ScienceLogic platform. JumpStart takes a unique approach to enabling the success of MSPs by addressing the product management requirements needed to successfully provide managed services. written tools, guidance and best practices that profitable MSP’s have learned over the years.
Now, ScienceLogic has introduced a brand new channel reseller program last month. This means that our partners can earn margins and professional services revenue on the resale of our products. Many, if not most, of our MSP partners have added reseller arms to their core businesses. The revenue from resale often dwarfs their managed service income stream.
Here is here customer choice comes into play. Customers and partners want to be able to choose how they receive the benefits of EM7: buy it as a service or buy it as a product on a subscription agreement.
Either way, the ScienceLogic platform services customers for a predictable revenue stream (3 to 10 years or more) that grows by as much as 40% a year. Our big “ah-ha” moment was when we realized that most of our MSP’s offer both managed services and resale of products and services. With ScienceLogic, our partners, and their customers, can pick either way. Our managed services partners already have the technical expertise in their NOC/SOC to provide implementation, customization and periodic services to their customers. Benefits for Value-added Resellers (VARs) are also available in this overlap. Many partners we talk with have been successfully reselling for years. However, they see the writing on the wall and profits on the worksheet. They want to start or expand their managed services.
ScienceLogic’s platform is the ideal foundation to build a practice around. And JumpStart is the plan to drive profitability. The VAR trend towards managed services is being pushed by companies like Microsoft and AWS, but is also driven by customer demand. Even many enterprise customers want to outsource their network management to refocus skilled people to more high-value activities.
In the macro sense, MSPs and VARs are merging together in their offerings. The most successful may be those who offer customer network and cloud services in the way customers want to consume them. Either as an MSP or VAR, offering ScienceLogic network and cloud discover, monitoring and management services is a truly valuable opportunity that shouldn’t be missed.
If you would like to learn more, please visit www.www.sciencelogic.com/partners.