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.