Focus On High-Value Managed Services
Many solution providers are simply running as fast as they can on a hamster wheel maintaining antiquated on-premise hardware and software reseller offerings rather than focusing on creating a highly profitable managed services business. "When you are looking at a market segment like managed services that is growing 45 percent that you can participate in, why wouldn't you put all your energy and resources into that," said Martin Wolf, founder and president of MartinWolf, a global M&A investment adviser focused on services models that has completed more than 115 deals. "I wouldn't do anything else. Most of these [solution providers] do not have enough resources to gamble."