Why Adopt The Hybrid (Break-Fix And Recurring Revenue) Business Model

By Dave Sobel, Director of Partner Community for MAXfocus at LogicNow

Managed services and the managed services business model remain the belle of the ball. Throughout the economic recession and over the past decade, the business model has proven itself resilient. According to industry data, best-in-class managed services providers have maintained their margins with systematic precision.    

The industry has sent a clear message to solutions providers — embrace managed services. Vendors have embraced this message, delivering it in force across the industry. Trade organizations and business coaches recommend it, and it’s clear it’s a path to profitability.

What is interesting about this message is the implication that is left unsaid. The message is designed to communicate a push to managed services, implying that break-fix style business is to be abandoned in favor of managed services. The best practices of the MSP model actually add weight to that message.

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