IBM Power systems carve out new territory in the IT Managed Services marketplace.


IBM and a Maturing Market

As the information Technology Managed Services business matures and competition increases, providers are looking for additional ways to increase revenue and profits. And as the Managed Services marketplace continues to grow (estimated at $268 billion in 2022), it faces competition from cloud services providers as well as from large resellers such as CDW and PC Connection that have now branched out into the MSP space directly.

Innovative service providers have successfully increased revenue and profits by pursuing services outside their normal scope. One of the largest and easiest areas to generate significant amounts of recurring revenue — without risking current relationships or investing a lot of time and resources — is in the IBM legacy computing space.

Migration As Opportunity

The potential market size is large, estimated at over $180 billion annually, and it’s growing rapidly as businesses rely on these systems to run mission-critical workloads. At the same time, they are facing severe staffing issues, as many of the support people are retiring. They are also confronted with increasing costs to maintain their systems, disaster recovery, security, and backup, just to name a few.

The IBM Power systems cloud migration effort is just beginning. The opportunities here are great; only 15% of businesses have made the move, while 85% of businesses report they’ll need to make the move within the next five years.

The average revenue is typically 3-to-4 times that of the traditional manage services account. Working with CloudFirst as your IBM Support Partner allows you to refer opportunities and earn recurring revenue with as little or as much participation as you desire — while still maintaining your client relationship.

To learn more about the marketplace and a step-by-step process for entering, visit our partner site, obtain more information, and sign up today!