Surviving The Transition To The Services-Led Model

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Some predictions say that perhaps 25 percent solution providers will not survive the transition to a recurring-revenue-driven, services-led business model. Tampa-based MSP Vology Director Calista Roussos has some recommendations about how vendors can help their channel partners flourish amid that changing landscape.

"Today, most of us have a very product, or maybe transactional business model," Roussos said, and highlighted Vology’s $100 million product business.

Roussos said solution providers like hers still need that core, original business to flourish while the company transitions to services offerings.

"I need the compensation models to support that, but then I also need the compensation models to address how our company is trying to shift," she said.

"The cost, the financial cost to take your business model that you currently have and transition it into another business model can be very, very risky."

Roussos recommended that venders structure their channel programs to reward "for the volume of today, while encouraging the value of tomorrow."

Channel programs should reward the success of core business, but also create ways to support the tricky transition to a services-led model, she said.

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