SUPER SP – How to become profitable running a Cloud Practice

By May 18, 2017Uncategorized

Join the First Distribution Microsoft Cloud Solution Provider Partner Program

The Cloud Solution Provider program combines Microsoft’s core Cloud products (Office 365, Dynamics 365, Enterprise Mobility and Security, and Azure) into one program. It also allows partners to transact and provide these solutions, along with other complementary cloud offerings, in a way that best suits you as the partner.

RAMP up, quickly:

Sign up your customers to your CSP offerings instantly*. Our program gives you as the partner access to support, and an extensive catalogue of services and solutions to compliment what your customers are using.

FOCUS your investment:

Manage your expenses by leveraging off the platform offered by us as your preferred indirect CSP – without having to make any substantial capital investments to build out your unique infrastructure or services capacity.

ATTACH services to help Your Business GROW:

Your First for Cloud webstore is as unique as your business is. Sell the offerings that appeal to you and to your customer base while making healthy margins and satisfying customer needs.

EVOLVE. At your Pace.

Test the viability of the cloud before making any major commitments:

When you become an Indirect CSP reseller through First for Cloud, you partner with us as your Indirect Provider, so that you can have an end to end relationship with your customers.

Through First for Cloud, you are able to sell Microsoft Cloud Solutions without having to make large upfront infrastructure, support, billing and invoicing. With all of this taken care of, you can focus on other aspects of your business and provide your customers with more value.

As an Indirect reseller, you generate revenue by selling Microsoft Cloud Products, however, the only way to differentiate your business and maximize on each opportunity, you will need to attach your value – added services, like, tailor made deployment, fast and efficient migration, software customizations and custom Line – of – Business applications, support, maintenance and training by a Partner who knows their needs and their environment best.

Not all revenue streams are equal. A Partner that focuses entirely on product revenue has the biggest barrier and will only see margins in the range of 5 – 20%. Margins for products are normally tied to vendor discounts and incentives. Without a change in strategy and desire to fund programs, you have the least control over your Business Growth and your Business’ destiny.

Project Services range from about 35% – 45% gross margin but this has been affected by differentiation in the channel which has caused billable pricing points to hold steady for the last few years while the increasing costs of salaries and benefit costs of consultants as well as inflation has eroded profitability. In response to these factors, aggressive and entrepreneurial members of the channel have changed with the times and kept ahead of the curve, have gone after the higher margin opportunities of professional and managed services. This generates between 45% – 55% gross margin and including your unique IP and value propositions can exceed 65%.

As an Indirect reseller, you generate revenue by selling Microsoft Cloud Products, however, the only way to differentiate your business and maximize on each opportunity, you will need to attach your value – added services, like, tailor made deployment, fast and efficient migration, software customizations and custom Line – of – Business applications, support, maintenance and training by a Partner who knows their needs and their environment best.

Set yourself up for maximum reward. Gravitate towards the recurring revenue lines and realize healthy growth presented with much higher valuations. This can drastically increase your company value. By being a cloud partner, you are almost guaranteed to become more profitable, grow faster, and have more recurring revenue.

Top 6 profitability resources for partners:

For more information on Microsoft Cloud Solution Provider Partner Program, please contact us on Microsoft.csp@firstdistribution.co.za

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