Best Practice Report

Understanding The Managed Service Provider Landscape

Questions Suppliers Should Ask And Answer Before Adding Managed Service Providers To Their Partner Ecosystem

December 23rd, 2020
Stephanie Sissler, VP, Principal Analyst
Stephanie Sissler VP, Principal Analyst

Summary

Managed service sales are thriving, providing a compelling opportunity for channel partners in the information technology (IT) and communications sectors. Margins for managed service providers (MSPs) are higher than in other sectors, revenue is recurring, and deeper trusted advisor relationships can be built with customers. These qualities make MSPs the “brass ring” for IT and communications suppliers — particularly those with cloud offerings and indirect channel sales that are below expectations. However, identifying, selecting, and recruiting the right MSPs to move a supplier’s business forward can be challenging. In this report, we identify the key activities suppliers should complete before initiating an MSP recruitment effort and how each activity in the recruitment phase differs in MSP recruitment.

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