A Real Revolution

Among the most jam-packed sessions at the event were those about managed services and recurring revenue hosted by ConnectingPoint of Las Vegas, ConnectingPoint of Greeley, Colo., and Riata Technologies of Austin, Texas. What's interesting is just how much more important and vital these VTN members have become to their customers by adopting the managed services model.

The most successful solution providers have always acted as trusted IT advisers for small and midsize businesses. But the managed services model elevates that role to a whole new level.

"This is the most significant change I have made in 22 years of business," said Ron Cook, president of ConnectingPoint of Las Vegas. About 60 percent of Cook's services business is now made up of managed services revenue. He said that number could hit 85 percent by the end of this year. Cook's target customer for his offering is an eight- to 50-seat shop.

The utility computing revolution is taking place, and it is not in the Fortune 1000. It is happening in small businesses. And it is not being televised by IBM or any other big manufacturer—solution providers are the ones doing the broadcasting.

Big manufacturers and most distributors, for the most part, are clueless about how dramatic the shift is and how it positions solution providers for the future when it comes to selecting the products that make up solutions of any kind. Ingram has done a great job with VTN and its Ingram Micro Services Network (IMSN). But times are changing. It's not just about low-priced products and product discounts. (Are you listening CDW?) Ingram has to elevate IMSN to a whole new level if it doesn't want to be left out of the next phase of this business.

Today's imperative is about helping drive the managed services model by taking out costs or coming up with innovative services or ways of pricing products and solutions for managed service providers. Manufacturers and distributors that come to the table with creative offerings will win. Those that don't will find themselves marginalized.

Which vendors and distributors know about the real revolution? Let me know at (781) 839-1221 or via e-mail at [email protected].