Magazine Article | August 15, 2014

3 Lies Break-Fix VARs Tell Themselves About Managed Services

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By Jay McCall

Despite the growing number of managed services success stories, many VARs are reluctant to make the switch, and here’s why.

If you read Business Solutions magazine, you might get the impression that nearly every IT services provider is selling managed services, experiencing year-over-year double-digit growth, and anyone that’s not doing this is the exception to the rule. A closer look at the IT channel, however, reveals that these success stories and examples are the exception. CompTIA’s Third Annual Trends In Managed Services report found that only 4 in 10 channel firms offer some degree of managed services. Of that 40 percent, only a small percent derive more than half of their annual revenue from managed services contracts.

However, as we’ve shown month after month, those who figure out the secret to selling managed services not only realize healthy double-digit profit margins over a long period, but something equally desirable to many business owners — the ability to spend some time away from the business without worrying about the next “all hands on deck” IT catastrophe.

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