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Longer relationships on offer to managed services providers

Simon Quicke
The benefits of managed services for channel partners are fairly well established with recurring revenues and greater chances of incremental revenue on the list. But additional rewards are emerging including gaining longer relationships with customers.

According to those working at the coalface in the managed services industry the chances of gaining more long-term business from customers is being proven by the experience of resellers selling in the market.

Speaking at a managed services event in Birmingham the director of partner community at Level Platforms Dave Sobel said that resellers were seeing longer contracts and greater customer retention.

"It has started to become a way of protecting the existing customer base and keeping the other providers out," he said.

"Some contracts can last for six to seven years for many solution providers, " he added referring to the longer length of relationship enjoyed by MSPs.

The desire for resellers to gain recurring revenues was also a big driver for getting involved with the market along with the chance to make extra sales from customers.

Sobel said that experience had showed that those already in a customer selling managed services often picked up additional sales that came out of being in the right place at the right time.

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