News Coverage: The Channel Company CEO Bob Skelley on Hybrid Solution Providers and interview with CareWorx EVP Marco LaVecchia

Partners Need To Evolve To Become Hybrid Solution Providers

by Steven Burke, originally published on Aug 22nd, 2018

The Channel Company CEO Bob Skelley Tuesday told several hundred solution providers at XChange 2018 that in order to thrive in the digital transformation era, partners must evolve to become hybrid solution providers driving business outcomes for customers through multiple business models and technology practices.

“Customers are becoming a lot more reliant on hybrid solution providers because they are looking for business outcomes and they can’t get that from just one solution or one technology. They need somebody that can come in and drive a full business outcome by stitching together many technologies,” said Skelley. “Customers are driving partners to a deeper level of engagement and insight into their business. This is about evolving and adapting so partners remain relevant to their customers to continue to realize great growth opportunities. Solution providers need to be moving down this path to become a hybrid solution provider.”

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Marco La Vecchia, executive vice president and general manager of CareWorx and MSPWorx, said the hybrid solution provider model is driving dramatic increases in sales and recurring revenue.

“This is MSP 3.0,” he said. “The multiple business models we are adopting is driving multiple recurring revenue streams. We are extending our tentacles into the marketplace with the ultimate goal to drive an additional $40,000 in recurring revenue on a monthly basis across multiple customers. We expect the hybrid solution provider model to result in $6 million in additional revenue this year.”

CareWorx and MSPWorx – which were both started by MSP pioneer and former N-Able co-founder Mark Scott, are both driving significant recurring revenue growth by focusing on different markets, said La Vecchia.

CareWorx – one of the top managed service providers in the country, is also a leader in the senior care technology solutions market serving more than 5,000 senior care facilities.

MSPWorx — which provides midmarket and enterprise managed services – has four distinct products (enterprise-level service desk, IT Service Management, remote system administration services and remote monitoring and management) and is seeing significant growth in ITSM with a tight relationship with ServiceNow. The ServiceNow practice has been transformative for MSPWorx. “We thought it was a great idea to attach ourselves to one of the fastest growing SaaS-based companies in the world,” La Vecchia said.

The ServiceNow business has also driven a partnership with IBM which was interested in leveraging MSPWorx’s ServiceNow midmarket focus.

MSPWorx is poised to introduce a partner program in September that will allow solution providers to leverage the deep MSPWorx service investments in ServiceNow.

MSPWorx is even building tight ServiceNow integration into remote monitoring and management systems used by MSPs, said La Vecchia.

“My advice to the partner community is ‘challenge yourself,'” said La Vecchia. “Take a look at some of these technologies out there that can help you drive large recurring revenue models as opposed to smaller ones. All businesses have the opportunity to do this.”

To view the complete article please visit: CRN here