Well, I was right. Best Buy's Geek Squad is indeed planning on making a managed services play. As I wrote in a recent blog, Best Buy has launched a channel program aimed at recruiting MSPs and IT resellers who are servicing the sub 25 user market. While this segment of the market has traditionally been ignored by MSPs, Geek Squad may have an advantage here. With a brand that is well known amongst residential and SOHO businesses, hundreds of retail outlets all over the country, and coupled with their mindSHIFT acquisition, Best Buy is very well positioned to approach and succeed in the sub 25 user business market. But, there is one catch.
Best Buy seems to understand that they need to MSP community in order to reach that business market. Based on preliminary discussions I've had with Best Buy, they appear to have a fairly regimented and scalable market strategy that allows smaller MSP resellers to offer 2 differently priced service plans. While the mindSHIFT acquisition won't play a role in this early phase of the program, hints from Best Buy seem to suggest mindSHIFT service capabilities will be a factor in the near future. Possibly something for larger MSPs to be concerned about? We will see.
For now, here are the takeaways from this latest announcement.
- Best Buy embracing managed services will further enhance the role of managed services amongst the SMB community
- This new program will likely have little to no impact on the 50 user and above market segment, which is where all the mature MSPs have been heading for the last decade.
- Smaller micro business and so called "break/fix" MSPs will face a do or die situation in the near future. Either they mature and expand their businesses, they assimilate into the Best Buy machine, or they become extinct. Maybe a harsh reality but a likely scenario nonetheless.
- Roll up MSPs with ambitions to acquire their way into fame and wealth now have a new threat. No longer are they the only game in town; smaller MSPs will be enticed by the Best Buy program and see it as a new and easy revenue stream with a partner that actually has a noteworthy brand name.
I anticipate there will be some tweaks and direction changes for the Best Buy managed services program; there always is. But, it is a game changer for the sub 25 user market and we will continue to monitor its evolution.
