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The Killing IT Podcast

IT authors and entrepreneurs Ryan Morris, Karl Palachuk, and Dave Sobel provide commentary on the changing world of technology opportunities and emerging tech.

We want to expand the discussion from the SMB IT channel to all things tech - with one eye on the future and the other on profits. Join us!

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:

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.