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Evolving for success in the “as-a-service” ecosystem

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Guest post by Paul Kaeley, Vice President Service Providers, HP Enterprise Group Americas

 

Over the last year I personally have seen a ton of ‘change’ in the service provider market. While most of this is in the positive direction of growth, I continue to see the importance of driving differentiation both in your portfolio and how you go to market. I hope you find my insights useful.

 

“It is not the strongest or the most intelligent who will survive, but those who can best manage change.” Charles Darwin

For service providers, this statement will likely be tested in 2015, as market consolidation is likely to displace many of the top 100 IT service providers. But while some service providers will merely survive by simply adjusting to change, a few will capitalize on change­—and prosper as a result.

 

service providers.PNGHere are three key ways that service providers can evolve to capitalize on changing technologies.

 

1. Differentiate your services

Service providers must clearly define their market focus and value proposition. What is your area of expertise? Are you serving small and medium-sized businesses, enterprises, or governments? Are you working within a specific industry vertical?

According to Richard Downham, VP of business development at Freudenberg IT (FIT), success lies in “doing one thing and doing it well.” Differentiation may also require a new business model to deliver innovation. According to Justin Moore, CEO of data and application protection service provider Axcient, the company adopted a strategic, long-term strategy to design and roll out a completely new managed cloud architecture for its services. Axcient is now one of the fastest-growing companies in Silicon Valley, providing new ways of protecting companies and eliminating application downtime.

 

2. Optimize company culture

Management style, customer focus, collaboration, transparency, selective hiring … all of these factors have an impact on what is commonly known as “company culture.” Axcient’s Moore says service providers need to align the entire company with core values and vision. Service providers must have the right organizational structure to deliver results to customers and the company.

 

3. Position yourself for growth

Service providers need to know what it takes to scale the business by a factor of 10 or even a 100. It is also helpful to consider how to leverage your existing platform. What new markets can you service? What additional services, functionality, or features can easily be deployed for growth?

 

Leverage a partnership approach for a strategic advantage

 

Axcient’s Justin Moore describes partnering with HP as instrumental in the organization’s success. From this relationship, Axcient has gained leverage to grow through higher visibility, HP brand awareness, and HP financial and technical support. Today, Axcient is driving sales of its Business Recovery Cloud through incentives to its own service provider channel network and with help from HP.

 

Differentiate, optimize and grow – three words that I hope you can leverage as you look to grow your service provider business and offers. What are your top three words for growth?

 

For more tips on how to evolve for success, download the white paper, “Survive the market storm: Guidance for service providers.”

 

Learn more at

hp.com/go/p1sp

About the Author

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