It's Time for a Better Way To Do P2P

Those who believe that the goal of every MSP is to become an MSSP are completely missing the mark. Those who believe partners are not to be trusted do not know how to partner properly. And those who believe they need to be all things to all people are out of their minds, and doomed to failure.

Partner-to-partner (P2P) partnering has been a major element of the Microsoft partner ecosystem since time immemorial. In 2009, Microsoft all but forced partners to declare their specialties or hire a whole lot more people to continue to qualify for more of them. Partners saw the sense in partnering with other teams whose expertise was not the same as their own.

Several years ago, the demand for data and network security services became undeniably clear. Soon, some MSPs began to refer to themselves as MSSPs, managed security service providers. Industry publications seized upon this and began delivering publications specifically devoted to MSSPs.

As with so many things in the channel, MSSP became the latest rage. Everybody wanted to become an MSSP. Well, not everyone. There were many MSPs who had long ago specialized on what they did best, and were uninterested in distracting themselves from that.

Some providers of security products observed this and offered a better solution: Encouraging their MSP partners to partner more enthusiastically with MSSPs who had proven their expertise in the security space. This is great advice. While it seems attractive to "go with the flow" and dive headlong into the security space, it may not fit your existing business model. It may distract you from the investments you need to make to grow your business. On the other hand, a well-evaluated, trustworthy partner can deliver services while you enjoy a slightly diminished profit margin that's offset by the absence of additional costs.

This same logic can be applied to any technology service you don't provide. There are recognized channel experts in storage, servers, datacenter management, ERP and other major software, and any other discipline you can think of. Joining the many associations that serve our community may help you find excellent partners. Also, many consultants are presenting themselves as "partnering experts" or coaches. Check them out.

The New Vendor-Partner Challenge
If you're reading this column, you are likely a partner that has bet the ranch on Microsoft. With other vendors, though, certainty has become elusive.

In the past, you partnered with a vendor because you were confident you could sell a large quantity of their products. You took their training, earned their certifications, and if indeed you did sell large quantities, they showered attention upon you.

As margins evaporated due to competitive discounting, you shifted toward dependence on your own services to generate your profits. In some cases, you outsourced product procurement, preferring to not extend credit to customers or encumber credit from suppliers, and you realized that any slight profit that might remain would be consumed by operating and logistic costs. As your volume of sales disappeared, so did many of your vendor reps who now needed to focus on those few resellers who were still actively and proactively pushing their products out to customers.

Today, when you look at a potential vendor-partner, you no longer look to them to produce any margin for you. That's become a fantasy. So, what do you look for?

Look for vendor-partners who recognize the value you bring in pulling sales of their products through with the projects and programs customers engage you for. This is not new. Way back, many vendors paid "influencer rewards" to the partner who actually sold the project, even if the customer bought the product elsewhere. Now, their buying elsewhere is a given, so you want vendor-partners who recognize and appreciate you as the driver of projects that pull through their products.

Hint: I sold my first Microsoft product in 1981. They have always focused on partners whose services and expertise pull sales through. That's one of the reasons you partner with them so enthusiastically. There are others.

Posted by Howard M. Cohen on September 25, 2024