Consolidated IT Services: The Rise of the Strategic Service Provider

By Pete Engler

Consolidated IT

When small to medium-sized businesses (SMBs) shop for partners to help with their technology needs, they want expertise, dependability, trust, convenience, and one-stop shopping. In the past, technology solutions utilized by SMB customers often came together by accessing a collection of multiple companies (or partners) specializing in specific areas. One partner would typically handle the data infrastructure, another the telecommunications, and another the desktops and laptops, etc. Several IT partners were needed to support all technology needs of a business. Today, IT services are easily consolidated and provided by fewer partners. With this consolidation of services, some channel industry experts are saying it’s time to re-evaluate how partners are classified. As a partner or reseller, that means it may be time for you to consider becoming a Strategic Service Provider (SSP).

How did the SSP come about? The rise of value added resellers (VARs) and managed service providers (MSPs) started the shift toward consolidation of the IT service offerings by a single partner. Telecommunications is a prime example. Traditionally, this service was provided by a separate reseller from the data infrastructure partner. Now, most voice services are carried over the data networks utilizing VoIP; a data integrator/reseller can add this service to their portfolio and eliminate the need for a separate specialized provider.

In the ever evolving technology channel, the SSP will play a critical role delivering a new type of information technology service to SMBs. The basic premise of a SSP involves getting to know a business’s current processes, problems, and overall business goals before executing and implementing a solution. You may be thinking that’s what the MSPs, VARs and traditional resellers of today are doing- but there is a difference. The main difference is the SSP provides all the IT services for a business in a cloud and services model with an in-depth understanding of the business. The solution is no longer in a silo, such as selling and integrating only a phone system. The SMB can now leverage the business process and technology expertise of the partner (or SSP) to provide a complete solution for the entire business. Such a solution can be cloud, on-premises or a hybrid mixture of theses components. The main advantage for a business when choosing to work with a SSP is utilizing a model of service that’s delivered at one monthly price and includes all the IT services tailored to fit the needs of that business customer.

Many factors are driving the shift to SSPs: the ever changing technology fueling the race to the cloud, the shift to a recurring revenue model for resellers, and the customer’s desire to have a single advising partner with solid business acumen for all of their IT needs. Consolidation of services and payment combined with solid business operations knowledge is an attractive model for the present and future SMB.

As an existing reseller, if you don’t already offer a complete IT package of services/solutions based on one monthly price, it might be time to consider moving to this model. It offers the customer a single resource to call when there’s an issue (a resource that fully understands each business) and the customer only has to pay one bill for all provided services. For resellers already implementing this model of service, it’s a matter of whether or not to go with the industry trend of calling yourself a SSP to better position your company as a strategic partner.

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About the Author

Pete Engler

Pete Engler is the Channel Marketing Manager at Digium. He joined the company in 2008 as the Product Manager for Asterisk hardware products before moving to Marketing. Prior to Digium, he served as a Product Manager in the Enterprise and SMB teams with Avocent Corporation, Applications Engineering at ADTRAN and 10 years in Information Technology as a Desktop and Network Administrator. As Channel Marketing Manager, Pete is responsible for channel marketing and lead gen programs for Digium’s worldwide network of partners, as well as marketing campaigns that continue to drive demand for Digium’s portfolio of telephony products, including Switchvox Unified Communications phone systems and Switchvox Cloud; and products for custom communications projects with open source Asterisk.

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