The Third Party Maintainer (TPM) and Independent Services Operator (ISO) market is more active and robust than it has been in decades!!
- Private equity activity has dramatically increased over the last 4 years. Today the top TPM / ISO companies are either wholly or heavily invested in by private equity
- As a result of the above, TPM providers are actively acquiring complimentary skills, capabilities and access to new geographies, channels or customers. There has and continues to be consolidation in this market thus creating larger and more capable providers.
- OEMs are leveraging third-party maintainers, pushing out more expensive OEM subcontractors in outsourcing and multivendor maintenance contracts.
- Service providers are becoming pragmatic and accepting the option to partner rather than invest their own capital expenditure to develop and build specific capabilities. The fastest growing channel for TPM is through commission-based partnerships with the authorized VAR community.
Gartner* strategic projections that we feel validate the market:
- By 2019, 80% of pure-play TPM providers with $10 million to $50 million in revenue will be acquired by a larger provider.
- By 2020, the number of TPM-related RFI/RFPs that are multiplatform/multivendor will increase by 35% as TPM becomes more mainstream and is no longer considered a point solution for servers, storage or networking.
- By 2020, instead of primarily competing against the OEMs, TPMs will compete directly against other TPMs for “greenfield” opportunities in 60% of deals.
- By 2020, 80% of North American VARs will have an active commission-based sales partnership with at least one independent TPM.
- By 2018, 75% of secondary hardware providers will have a formal, strategic TPM offering.
Service Industry Association (SIA) has been a catalyst for the TPM / ISO market as the largest global association of TPM / ISO companies.
With 140+ member companies, including 25% of the member companies with HQ outside of the U.S., SIA plays a significant role in defining and shaping this market.
SIA is sought out by private equity, investment banking, and legislatures that provide thought leadership and industry directions.
If you participate in the services supply chain, sell to participating companies, or have a need for these services, we encourage you to consider becoming a member of SIA today!
*Gartner, Competitive Landscape Partnering With Third Party Maintenance Providers for Data Center and Network Maintenance Cost Optimization, July 2017