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Best In Class Solution Providers Can Sell Across
Delivery Options
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
100% of Rev
from 50% of Rev from
Managed/Cloud
Managed/Cloud
services
IT infrastructure VARs who Services ~25% Sweet spot ~50% of
revenues in
have added Managed/Cloud <5%
managed/cloud services
Services also key 20% of Rev from
Managed/Cloud
Services
~75%
*The Channel Company/IPED perspective
based on industry research and partner
interviews.
