What is a Technology Solutions Partner?
The technology industry is evolving – fast. Client expectations are shifting, traditional business models are under pressure, and the terminology used by technology partners is no longer keeping pace.
For years, Managed Service Providers (MSPs), Systems Integrators (SIs), and Value-Added Resellers (VARs) have each played important roles in the industry. But as technology services become more commoditised and standardised, these labels are no longer enough. Many businesses are realising that their current positioning isn’t well-equipped for the future.
Let’s examine key challenges causing these industry shifts, how the concept of a Technology Solutions Partner can make a meaningful difference, and the business models that can act as a guiding light for building more resilient, future-ready businesses.
Why Traditional Technology Business Models Are No Longer Future-Proof
One of the most common concerns we hear from technology businesses is that the industry is transforming rapidly and traditional models are falling behind. Factors accelerating these changes range from shrinking margins and shifting client demands, to vendor consolidation and lack of differentiation.
Of course, traditional business models still exist. Just imagine your local break-fix IT companies and old computer shops. But are they growing, or turning a profit? Most often, no. They’re simply surviving.
For starters, let’s consider the term Managed Service Provider (MSP). It has many connotations and hasn’t been used to its best advantage in the industry. While many people understand MSPs are focused on end user support, with IT infrastructure management at its core, clients don’t typically connect with this terminology. Vendors and distributors alike consider it a ubiquitous term. The business model itself limits how these business can operate, grow and engage clients.
Other business models are in the same boat, such as Systems Integrators (SIs), which focus on a technology speciality, driven by professional-services. As well as Value-Added Resellers (VARs), product-driven businesses, that may also sell services. Neither of these are MSPs. But the industry has been using this term for so long, many think they need to become an MSP to keep pace – even though the reality of delivering these services isn’t in line with their goals. They may gain some traction in the MSP space, but it’s short-term fix.
So, what is the goal? Most often, it’s securing regular, guaranteed, recurring income from ongoing services.
Achieving this is possible. But it starts with broadening your mindset.
How Can We Create Meaningful Change?
The turning point isn’t coming – it’s already here. So, for technology businesses to be successful, it’s worthwhile to make the shift from being reactive to being proactive.
Enter: The Technology Solutions Partner, and fundamental mindset shift for making an effective pivot. What does this terminology mean, and how does it make a difference? Let’s break it down in more detail.
Technology
Technology is a holistic term that captures cyber and IT, as well as communication tools. All businesses have technology needs, and they need partners to help them through their journey.
Solutions
Solutions go beyond transactional services. Instead of commoditised, standardised delivery, it requires you to have a true understanding of your clients need. This enables you to:
- provide solutions to real business problems
- create opportunities for them to become more efficient and grow
- help them understand and mitigate risks
- leverage technology to support them in scaling their business.
(“Services” just doesn’t cut it!)
Partnership
Partners do more than transactional providers. Providers deliver and bill, without developing relationships with customers or offering additional value. Partners, on the other hand, offer a white-glove service. This is particularly valuable in the SMB space, where many technology businesses value client relationships and offering value-add services.
Since clients value partnerships, why not embrace this mentality? This could mean developing traditional partnerships, or elevating your services to become a strategic business partner. This can also look like partner-to-partner relationships – for instance, owning relationships with small business clients, then leveraging other technology specialists to provide delivery in their specific capability area.
Needless to say, there’s nuance to being a Technology Solutions Partner. It isn’t a one-size-fits all approach. While you may opt for a different term, it’s a concept that can act as a guiding light. It can fundamentally reshape your purpose and direction for the better.
Key business models for Technology Solutions Partners
We’ve covered the concept, but what does it look like in practice? Here are a few TSP models that may spark your interest.
The Technology Broker
Technology brokers engage with clients needing a procurement partner. This goes beyond procuring straight hardware as traditional VARs do, with additional services. It can involve procuring hardware, but also SaaS, cloud solutions, communications tools, services from other partners, and more. This type of partner acts as a conduit, similar to an insurance broker, providing avenues to a variety of options and specialists, without managing 100% of delivery.
The greatest benefit for the client is that they simply maintain a strong relationship with their broker, who provides them with best-of-breed solutions that are relevant and advantageous for them, as well as proactive guidance and direction.
The Boutique TSP
This type of TSP an advisory-led organisation. Grounded in business consulting and advisory-level engagements, they provide clients with governance, compliance support, and implementation assistance for different technologies that suit clients’ needs. Boutique partners offer highly-personal relationships, led by a deep business understanding.
The Specialist TSP
Specialist TSPs have deep expertise within a technology category. They offer high-level resources, ongoing services, and are capable of delivering project work.
How is this different to a traditional SI? The Specialist builds a channel model – using partner-to-partner play to amplify their efforts. They may not be primary relationship holders, but they play a foundational role in delivering technology solutions for different businesses.
The Scaled TSP
Similar to large MSPs, scaled TSPs are focused on consolidations, acquisitions and market expansion. They deliver generic, standardised solutions that can be delivered at a cost-effective rate through things like:
- automation
- offshoring
- other cost-effective offerings.
Why is this effective? Not all clients need or want white-glove service. Many simply require specific solutions delivered to them – solutions they can afford, and scale.
As traditional offerings continue to become commoditised and delivery becomes cheaper, scaled TSPs may find themselves obtaining greater market share. Clients may opt for cheaper offerings with service providers that don’t need to provide extra value.
There’s No One-Size-Fits-All
For certain clients, you may experience some overlap between these areas. So it’s important to note, you don’t necessarily have to fit into a singular category. You may progress in one area, then find yourself branching into another. The business models above, however, are a great starting point to determine:
- what you’re aiming for
- how to design and structure your business model
- your core financial drivers
- the type of partners you need in your ecosystem to be successful.
Whether your call yourself a technology solutions provider, a technology partner, a procurement partner, an ITC partner, or something else entirely – it’s no matter. Simply harness the Technology Solutions Partner concept as a roadmap for your transformation journey.
The important thing is to determine your ideal clients, identify what matters to them, and speak their language.
Final thoughts
For technology businesses, it’s clear standing still isn’t an option. Hopefully, with these ideas for embracing a new approach – becoming a Technology Solutions Partner – the future is looking a little brighter.
Take a moment to stop and reflect on where you are now, compared to where you’d like to be in the future. Be deliberate about whether your goal is to exit in the short-term, or transform for the future.
If you’re ready to transform, it’s time to create a new identity for your company. Identify what you’re trying to achieve, what your current capabilities are, and what you need to develop for the future.
The path ahead may be challenging, but the TSP framework is a great way to move forward with greater confidence.
Motivated to learn more about TSP models? Learn more.
