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According to research from The Channel Company/IPED, ideal “Partners of the Future” will sell on-premise as well as offer
managed and cloud based services. As a Cisco Partner, you will need to develop the appropriate balance for your business.

Partner Profile • A Cloud / Managed Service Provider is typically a VAR who has transitioned to add additional managed or cloud

services to its portfolio
• By Selling into the on-premise data center, hosting or reselling cloud services, these partners are well

positioned to meet customer needs
• The recurring revenue services offset the revenue/gross margin loss in the transition from one-time-charge HW,

SW to recurring revenue

Percent of Revenue from Managed / Cloud Services

IT infrastructure VARs who 100% of Rev from 50% of Rev from Sweet spot ~50% of
have added Managed/Cloud Managed/Cloud Managed/Cloud revenues in

Services also key Services services managed/cloud services
<5% ~25%
*The Channel Company/IPED perspective based on
industry research and partner interviews. 20% of Rev from
Managed/Cloud

Services
~75%

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