Aug 27, 2019
This Killing IT Podcast takes a different format from our
previous posts. Here we take a focused look at an important webinar
that was recently posted. A tip of the hat to Joe Panettieri Paul
Dippell!
ChannelE2E published Paul Dippell's Service Leadership Mid-Year
Report here:
https://www.channele2e.com/webcasts/jul2019/?utm_source=E2Ewcpage&utm_campaign=jul2019wc
A few data points discussed here:
- Profitability of product-focused vs. service-focused industries.
- How much "hustle" does it take to make the same profit in a product-centric business versus an MSP?
- Operational Maturity Levels. In particular, slide 14.
- A solid 1/4 of MSPs doing great with regard to OML. But that means 3/4 have lots of room for improvement.
- We spin that in the direction of opportunity to do more, do better, and make more money.
- Slide 16: The faster you grow, the higher your profit. A nice counter-intuitive point.
- How does this affect your need (desire) to hire a sales person? [Insert notes from Ryan on sales compensation strategies.]
- Slide 13: "There is no empirical data supporting the worry that either cloud or commoditization (or both!) is depressing financial results of MSPs."
- In fact, there's no evidence of profit erosion! Profit is growing.
Bottom line: There's lots of good news here if you're a Managed
Service Provider. Note also that you can also make lots of money on
products! You literally have to choose which direction you go.