What should you do about The Cloud ?
The vast majority of small IT companies made their living selling solutions up until recently. They are responsible for quoting clients and specifying server solutions on-site such as Microsoft Small Business Server. These sales typically result in a 15-20% mark-up for server hardware resale and a nice 2-3 day labor cost for installation services. There is also ongoing revenue from maintaining, monitoring, and supporting the installed solution. office.com/setup
This model has been successful for many years. But now, “The Cloud” is threatening to overtake it.
The Cloud is a game changer?
Cloud services like Microsoft Office 365 and Google Apps eliminate the need to have a server installed on-site. The 15-20% mark-up on hardware sales is gone.
Microsoft Office 365 or Google Apps require very little setup or initial configuration. Therefore, the labor required to install services takes only 2-3 days.
As part of their monthly fees, clients also get 1st Line Support from Google and Microsoft. This includes looking after product updates and maintenance, and patching. The IT company’s revenue from support, management and monitoring disappears.
Overall, the “Cloud” may seem to be a negative thing for IT companies.
How can your IT company make a profit from the cloud?
What can IT companies do to save their employees? Stop complaining, close your doors and tell your staff to find a new job.
That’s one option. The Cloud will certainly bring more data-center jobs to technically-minded business owners. The Cloud offers many employment opportunities for those who enjoy managing complex Microsoft Exchange infrastructures.
IT companies that aren’t ready to take this route should think less about technology and more about business.
This is what the most successful IT companies do for many years. They don’t speak in terms of SQL, Exchange, or DNS. Instead, they listen to their clients and provide solutions in terms that are easy to understand for them.
This is not something that “The Cloud” can change. IT Companies can help clients by being informed about the capabilities of Cloud Solutions.
Listen To Your Clients
It is often the case that Cloud solutions may not be the right fit for clients if they listen to their needs and are fully aware of the limitations of Cloud solutions.
A client might have a Line of Business that is not Cloud-ready.
A client might find a Cloud solution unsuitable due to security concerns.
Clients may need bespoke customization, which could prevent the use of a Cloud solution that is cookie-cutter.
For IT companies, the key is to not enter into an engagement with clients having preconceived notions about what they will need on-site and Cloud.
Instead, you should be aware of all the options available and listen to the client’s needs. Next, discuss the pros and cons of each on-site, Cloud, and Hybrid solution and help them to come up with their own conclusions.
IT companies who are comfortable selling hardware, licenses and servers on-site are at risk of trying to push clients towards a traditional solution. If the client decides they want a Cloud solution, the IT company may lose the business to another provider who is more familiar with the market and willing to talk about it.
How IT companies can make money with the cloud
If a client finally decides to go with a Cloud solution, how will the IT company make money?
Look for value-added services. Clients can now save money by using a Cloud solution over an off-site one. This allows them to use the money for innovative Voice-over IP deployments, social media marketing projects, and more. Imagine yourself as the business owner. By making significant savings on IT infrastructure, she will be more inclined to invest in projects that provide real business benefits.
Don’t assume that clients will not still require assistance with their local PCs, Antivirus, software, support, consulting, or management of their relationship to Microsoft, Google, or any other Cloud provider on a recurring basis. You will still be the one they turn to for guidance and advice, rather than a Call Center. These requirements can be met by a Managed Services.
A Bright Future, But Cloudy Future
Bottom line: As an IT Solution Provider (MSP), you must accept the fact that the world is changing. You can adapt by becoming more knowledgeable about Cloud solutions and taking a consultative selling approach to offer your clients impartial options.
You can also continue doing what you’ve always done, and hope it is enough.
However, I wouldn’t bank on your competitors acting in the same manner. www office com myaccount
