How do you increase recurring revenue by 50 percent while deeply reducing costs and serving 25 percent more customers? It can be done!
I recently sat down with Lee Harper, CEO of New Zealand-based pcMedia, one of the top cloud partners in New Zealand and Microsoft New Zealand Partner of the Year. pcMedia started out as an OEM partner delivering break fix support. Four years ago they saw the opportunity in the cloud and jumped in with both feet to deliver project and managed services for Office 365 and later, Azure. They realized cloud enables them to scale up to serve larger customers than in their traditional business, and because physical proximity is no longer a requirement, they could go from being a regional provider to offering services nationally. During our conversation, Lee shared a ton of great best practices, but two stood out from our chat:
  1. Scale up with resources optimized for the cloud. One of the first things Lee did when he transitioned his business to the cloud was evaluate his staffing. Previously pcMedia had a staff comprised of heavy server engineers. Lee quickly realized they didn’t need the deep technical expertise any longer so transitioned to a model in which he employed more junior technical staff. As a result of this decision, pcMedia was able to cut costs and scale up to serve 25 percent more customers.

  2. Go vertical and create IP to differentiate your business. As pcMedia began to build up a mass of customers, they realized they had begun to acquire a healthy number of customers in the wine industry. They developed some industry specific products, hosting two key winery applications remotely enabling wineries to use these standard line of business applications alongside Office 365 to run their entire business. These applications enabled their customers to access their data easily from any device, anywhere, at any time, and to save money by removing the costly server hardware and infrastructure from their businesses.

    According to Lee, “Building our IP offering into the business has been a key driver of our success. It has allowed us to increase our recurring revenue by over 50 percent, increased our average revenue per user, and allowed us to produce unique product offerings in various business sectors which makes our product offering more compelling for our customers.”

Check out my interview with pcMedia for additional insights into their success.
If you have feedback, questions, or if you have a compelling story to tell about your business, I would love to hear from you! Please reach out via email, Twitter, or LinkedIn.
Until next time,
Jen

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