The SMB IT channel has hit a point of fragmentation. Today, channel can be all things to all people but not in 2018 unless channel finds a way to generate more than 150% of revenue. Faced with an expanded SMB buyer community and requirements for specialized skills to support different solutions, the SMB channel is beginning to segment by focus area. Although the different specialties are starting from a common point today, Techaisle expects to see each develop unique characteristics over the next several years.

Highlights of Techaisle’s report on State of SMB Managed Services Channel include:

The business of the SMB channel: migrating to specializations

Managed services in the channel: pervasive as a delivery vehicle, becoming more of a specialty

The role of the vendor in the managed services channel

Working with the SMB managed services customer: managed services addresses key buy-side imperatives

The survey data shows that channel partners struggle to transition from delivering some managed services to building viable businesses on a managed services model. To be successful, vendors will need to set objectives spanning a three-year period over which managed services specialization will emerge.

Many IT vendors will struggle with simply understanding this fundamental change in the market, and more will fail to understand the focus and investment required to grow with partners through this transitional period.