Build, Buy or Broker? Channel Partners Tackle Evolving Technological Demands
How do partners provide a single “throat to choke” in an age of expanding and ever-complexifying business technology needs? Or is that even possible?
IT, telecom and print existed as separate industries for a half-century, but their lines have blurred in recent decades. And although partners have fiercely debated if convergence will occur, the answer is clear.
“It’s converged; it’s happened,” said Mike Onystok, TBI’s senior vice president of operations. Onystok, who comes from the traditional telecom services brokerage side of the channel, said traditionally, IT-focused partners have been selling through TBI for a long time. But he does see an influx of these partners adding carrier services and connectivity-oriented technology to their portfolios.
“VARs and MSPs more than ever are coming to our portion of the channel and leveraging carrier services, unified communications, security and other technologies to better fit their customers with the right solutions,” he said.
But how does a partner evolve their practice to deliver offerings they’ve never delivered before? Channel Futures asked two partners about their journeys in convergence.
Partner 1: Investments Pays Off
Marco Technologies holds a spot on the 2021 MSP 501 list as one of the world’s most successful managed IT providers. However, the company offers more than managed IT and hasn’t always offered managed IT. Matt Kanaskie, Marco’s vice president of sales, said his company has been participating in convergence for a long time. All the way back to the 1970s, in fact.
Marco’s founders actually started it as a typewriter company back in the 1970s. The company sold office furniture and supplies out of retail locations. Then the world of technology evolved, and Marco evolved alongside it. First, typewriters went digital, and then copiers started connecting to networks. As a result, Marco started a data networking and infrastructure practice.
Evolution continued. Marco adopted VoIP and expanded into audio/visual. The company built a manage IT services practice. It acquired a technology consultancy and entered the traditional connectivity agent channel. Kanaskie joined the company six years ago to start the company’s cloud voice practice. Most recently, the company has been investing in its security play.
Throw out a partner moniker, and Marco probably fits the description. MSP, MSSP, VAR, system integrator, telecom agent, copier dealer; Marco does it.
“Once something became IP-connected and became a challenge for the IT department, we expanded services into that practice,” Kanaskie said.
Drivers
Kanaskie said Marco expanded not just to provide new technologies, but to provide different ways for customers to consume the technologies. Some customers just want the partner to sell them the solution. Others want it designed. Others want implementation or management. Consider that Marco was already brokering voice services when Kanaskie launched the company’s cloud voice practice
“As opposed to saying, ‘Hey let’s go broker it,’ we built it. But we also broker too,” Kanaskie said. “There are so many options and niche fits, that if you’re going to be a consultant to the end user client, you need to represent what’s available to them in the market, not just what you’re trying to shove down their throat.”
While Marco has built new practices to corner new market opportunities, the changes often stem from customer requests. For example, the company bought a telecom agent after customers asked for them connectivity consulting.
“Clients were going, ‘Hey can you take over this telecom stuff? You’re already doing my phone system. You’re already doing my firewall. Can you help me with the Comcast stuff?'” Kanaskie said.
But what’s the end goal of adopting new practices? Is it simply to stay sticky with existing customers?
Kanaskie said the opportunity encompassed much more than that.
“It opened up an opportunity for cross-selling our expanding wallet share. The momentum was growing inevitably. There was no reason not to do it other than the strain on the financials,” he said.
The Challenge
And it was a strain indeed. Kanaskie said Marco’s IT division took years to reach profitability.
“It took a steadfast commitment, knowing that the market would come,” he said.
He said Marco struggled most to …