In 2017, value-added resellers (VAR) must have the “Big 6” offerings that David McNicholas, Comstor Director of Strategy, outlined in his look back at 2016 or prepare to cash out and close up shop. The Big 6 are hybrid cloud, hybrid managed services, optimization services, application services, professional services and vertical expertise.
To get to where they need to be to compete successfully in the era of digital IT and Internet of Things, will require consolidation, creation of Dynamic Value Partnerships (DVPs), and/or acquisition.
VARs need to go beyond offering only technology, and really help customers deliver business outcomes. For example, while VARs still must be good at storage and compute and have a hyperconverged play in data center, they should be pivoting into this new era of digitization.
“The real way to grow company, maximize shareholder value and create a relevant future is to transition into digital IT and the Internet of Things,” McNicholas explained. “Success will depend on a VAR’s ability to drive recurring revenue and high margin services around hybrid cloud, hybrid managed services, optimization services, application services, professional services and vertical expertise.”
Success will come through ecosystems – DVPs – that allow VARs to offer joint solutions that are more powerful than going in alone. McNicholas said that the Comstor Security Initiative (CSI) is an example of a successful DVP that is creating continued success and recurring revenue for Comstor partners.
“In the past, VARs thought they had to stand up a practice and deliver it, but few are able to stand up things like Managed Services,” he shared. “They need to create DVPs to keep up with the pace of the market and be able to combine offerings any way they can that drive business outcomes for their customers.”
Unless a VAR is willing to create DVPs to sell services that help customers create business outcomes, 2017 will be the year they must cash in their chips, according to McNicholas.
Listen to his entire podcast below.