Written by Beth Hildreth on May 27, 2015

For Managed Service Providers, determining which vendors will make the best partners isn’t a quick process. The factors an MSP should consider before entering into a long-term relationship with a vendor are numerous. While the factors for consideration can include available sales support and training, the vendors ability to draw in leads, scalability of services, marketing support, and more, here are the seven most crucial aspects:

1. Which Business Model Works Best

There are three different business models in backup and recovery: backup and storage focused, trailing complementary, and leading complementary. Based on their individual storage and backup requirements, MSPs should examine each option and determine which one best meets its needs.

2. Generate a Vendor Partner Shortlist

Identifying the pros and cons of each vendor along with product capabilities and business models. How does the vendor interact with providers versus direct customers. With respect to customer acquisition and retention, is the partner’s position supportive of MSPs or competitive?

3. Perform a Thorough Review

This includes questions such as whether vendors provide service delivery modules, and whether the vendors services are designed for MSPs. Another element to consider is whether or not the vendor provides secure services that follow strict data security compliance regulations.

4. Get a Good Grasp on the Vendor’s Support Practices

MSPs provide support in different ways. Questions in this area include whether or not the vendor will provide support such as marketing, a dedicated channel portal for the provider, and direct selling support. If the vendor also sells direct, it’s important to know the specific guidelines.

5. Figure Out the Flexibility of Margin and Pricing

Like with many other services, support service pricing will vary greatly from vendor to vendor. MSPs need to find out how flexible the vendor’s pricing structure is, and determine if they can set their own to make things easier. Recovery-performance-based, usage-based and capacity-based pricing models will each work differently depending on business models.

6. Pick a Revenue Recognition Model

There are three main revenue recognition models to consider: software license resale, wholesale, and own-your-own-vault models. MSPs should look at each model closely to understand which one will best serve their revenue goal.

7. Make Sure The Vendor Services are Scalable

Ideal vendor partners will be able to scale their services and solutions to meet demands as their business expands.

Momentum Telecom has the industry’s leading channel partner program; one built with your long-term success in mind. Learn more today.