Something has happened in the managed services community over the last three or four years which is worth noting. It is my opinion that when things get tough many MSPs tend to search for very easy outlets for their managed services offerings. While there is nothing inherently wrong with this approach I would like to raise the question of whether the channel is an effective and profitable model for existing MSPs.
First, there is the issue of experience. When a technology vendor approaches the channel they do so knowing full well that they are going to do things according to the code of the channel. This unwritten code usually espouses things like deal registration, channel partner recruitment and mentoring, along with marketing support and practices that are designed to foster partner growth without playing favorites with anyone in particular company. MSPs may have experience on the receiving end of that vendor/channel partner equation but it is much different being the vendor in that relationship.
Second, there is the issue of relationships. It is well known that MSPs have relationships with their clients that represent the real value of that service provider entity. Typically, our profession values a managed services for client relationship with a client in the form of a contract or service level agreement. There is a very real question of whether a managed service provider can really benefit by adding another layer directly in the path of their relationship with the end-user. In other words, if a managed service provider has the objective of getting as close to the end-user is possible what possible motivation is there to have another managed service provider standing in the way? Obviously, Master MSPs have built a model where this is precisely the objective. However, these Master MSP organizations have spent years on developing channel friendly practices and it did not come to them overnight. A true Master MSP has years of experience with end-users and when they become that Master MSP it is through a decision to become channel only! Most MSPs aren't willing to do that.
Lastly, there is the issue of efficiency. It has been my experience that many of the MSP companies that turn to or evaluate a channel strategy do so because they are facing a decline in their own end-user sales. If these organizations only knew the challenges that await them as a channel company I wonder if many of them would still choose a channel strategy versus a direct sales model. These companies sit at conferences, talking to their colleagues and believe that it would be very easy to sell to other service providers. Trust me, it is not that easy. Just because you know a lot of MSPs doesn't mean they will buy from you, especially if you used to be a fellow MSP.
Just so I'm clear, if you have a technology or solution that you believe is best delivered to the channel then by all means you should embrace that path. However, if you are only looking at the channel because your direct sales model has failed then I would suggest reevaluating why your direct model did not succeed and spending your time and resources on fixing that as a more direct and profitable path towards success.
