October 30, 2019

How A Local MSP Added $500k in ARR

Case Studies  •  IT Architecture

Background: 

Our customer is a regionally-focused managed service provider (MSP) located in Southern California with an enterprise client who was looking to complete a data center refresh.  

The end user client is a $4B publicly traded healthcare provider with data centers in three states. They maintained a stable IT environment, but had made some recent acquisitions and were preparing for the related growth.

A large, national IT solution provider came in to propose a very high-end and expensive blade server solution to the end user.

Issues:

Our customer was aware of this project and was invited to quote a solution. Realistically, he had very little chance of winning this opportunity from the start because the manufacturer had already selected another reseller they wanted to win the deal and awarded them discounted pricing.

However, the end user did not like the manufacturer-proposed solution. It was extremely new and still unproven product, and was outside of their budget.  At the end of the day, what the end user really wanted was simplicity.

Both the manufacturer and national solution provider kept pushing complexity and shiny new toys with advanced features that had no value to this customer.  When they received feedback that it wasn’t a good fit from the client, they just pushed harder. Demos, discounts and free lunches…but the issue remained, and the customer simply didn’t want the solution that was being suggested.

Outcome: 

Our customer, the local MSP, contacted us to see if we had any ideas on how to compete on this project and help the end user get what they wanted. We listened to the feedback, respected the budgets and crafted a simplified rack server configuration with exact same internal compute resources.  It also happened to be $400k less.

Although the manufacturer continued to throw more discounts at the deal (cutting hundreds of thousands of dollars off the quote with no real rationale) – it was the transparency, open communication and engineering support that carried the day.  The end user got the solution they wanted, delivered complete in a few business days, came in well under budget and our customer won an outsized deal.

Outsized as in doubling his total product sales for the year.  He has grown closer with this end user and has won other professional service deals since.  He is now talking to all his largest enterprise customers and highlighting datacenter refreshes as a key capability for his organization which has the ability to open up $500k in new business next year.

Lightning-quick quotes.

We’re confident that you’ll find real value – and an amiable team – at B2X. You’re welcome to test us out on a small order, evaluate how it went, and then keep growing from there.

Work with a Top-Notch Partner
B2X Server Illustration