"What Every Managed Service Provider Needs To Know
Now About Selling Cloud Computing Solutions"

Hard Lessons Learned From Selling Managed Services – And How NOT To Repeat Them When Selling Cloud Computing

As I was preparing a presentation the other day on marketing cloud solutions, it occurred to me that the PowerPoint was looking frightfully similar to one I’d delivered 8 years ago on managed services when it was the “new thing.”  I thought it would make for a good article to post here on the cloud computing blog since those who don’t know or study history are doomed to repeat it. So, here goes…

1.       The “build it and they will come” strategy won’t work – in fact, it’s a disaster waiting to happen. So many wannabe managed IT service providers spend MONTHS building their managed services platform…the PSA, remote monitoring tools, backup, etc., etc. Then, after putting a TON of time and money into it, they suddenly realize, “Hey! I need to actually sell something here.” By then they’re losing money every month because they didn’t figure out one of the MOST important things in running a business: how to bring a new client in profitably. In cloud computing, I see a lot of the same trend. Wannabe cloud integrators looking to invest a TON of their time and money into building their own infrastructure and/or platform in the hopes that someone will buy it.

2.       Don’t sell an “all you can eat” model based on what everyone else is selling it for. I’m shocked at how many MSPs priced their services based on what everyone else was selling it for (or maybe a tick cheaper so they felt as though they weren’t out of range) instead of actually figuring out what your fully burdened cost is and then pricing it accordingly. This is another disaster, particularly with cloud solutions. If you don’t quote it properly and take into consideration a number of costs that could arise, you’re running the risk of losing all your margin while simultaneously annoying the customer to the point of leaving you. Plus, it’s kinda important for you to know that you’re going to make money…not just wait until the end of the year for your accountant to inform you that you’ve LOST a ton of money after pouring your heart and soul into countless hours of work over the year.

3.       Avoid focusing on the technology rather than on the result the client wants (and what you get paid to deliver). Be it break-fix, managed services or cloud computing, clients still just want one thing: They want it to WORK, period. No excuses, no constant problems cropping up, no long-winded explanations.  For the most part, they don’t give a rat’s butt about the technology; they simply want everything to play nice at a reasonable fee. And when you’re marketing your business, don’t forget this…being a “cloud integrator” doesn’t do you a bit of good if you can’t make it work for the customer.

4.       Don’t make the mistake of promoting the technology in your marketing rather than promoting why someone should TRUST you. Remember folks, it doesn’t matter how many acronyms you throw at a client, you’re not making a sale (or even getting an appointment) if you can’t clearly explain WHY a prospect should trust you in the first place – be it complex cloud computing solutions or simple break-fix.

5.       Don’t wait for everything to be “perfect” before you get started. While I AGREE you shouldn’t just go out and start selling cloud services before you know what you’re doing, you can’t wait forever either. Use your company as a test environment and beat it up. Learn the pros and cons. Talk to other successful cloud integrators by all means – but at SOME point, you’ll just need to deliver it to a few clients to figure it out. You’ll learn far more by rolling it out to clients, making mistakes and adjusting than you will standing still.

I’m sure there are other lessons, but these are the ones that popped into my mind. If you have others, please comment below.