In a virtual staff meeting yesterday, Logikworx CEO John Obeto II finally told us what we had known for a while: Logikworx will now accept projects in the midmarket.
I asked him a few questions:
Webserf: After a couple of decades focused on SMBs, why the midmarket?
John Obeto: We didn’t come here willingly.
We had turned down such deals in the past because we were a) hampered and/or restricted by the MSP package we had in use, and b) I didn’t think we had staff that were both adequately trained or experienced in managing larger clients.
That has changed.
Webserf: How come?
John Obeto: We kept on getting qualified leads that wanted us to do the job despite the fact that we shied away from them because of their size.
Finally, I decided to take the plunge. We hired consultants with experience in managing larger companies, and trained them in “The Logikworx Way”.
We also contracted consultants that architected the actual processes, all the while shadowing them with others that vetted them, and their solutions.
I then managed the accounts personally, reducing that to co-managing, and finally handed off to the account managers ninety days ago.
I will still maintain account oversight for the foreseeable future.
Webserf: Does this mean Logikworx is leaving SMBs and moving up to the midmarket?
John Obeto: Definitely not!
I don’t think there would ever be an abandonment of the SMB as long as Logikworx exists. This is a step further ahead.
You weren’t here then, but we started out with the really small mom-and-pops when our VAR practice started taking off from the applications programming business. While we don’t target that segment anymore, we have stayed firmly in SMBs even as we have grown.
Webserf: I remember one of our meetings when you had talked about getting back to smaller firms. Is that still an option?
John Obeto: At this time, no. When Microsoft Intune was announced, I had thought that we could look into smaller companies with that solution in conjunction with BPOS, now Office 365.
However, the convoluted billing for Intune totally turned me off, as we would have had to insert Microsoft into the billing process, with the potentiality of no longer ‘owning’ that client. I couldn’t allow that.
Moreover, in the models I looked at, I didn’t see how we could reach desired profitability without sacrificing services and vice versa.
Webserf: Profits, as usual?
John Obeto: Profits, Norman. Profits.
For me, the constants are our levels of service and support. Knowing that, we have to find a desirable sweet spot that melds those two constants with our need to be profitable.
I just don’t see it at this time.
Webserf: Are we going to actively seek projects in the midmarket?
John Obeto: With the forthcoming Windows Server 2012, Hyper-V 3.0, and the VMware bids we have out, I don’t see why not. Moreover, Rod* thinks that moving to the midmarket might help our prospects in West Africa. I hope so.
Thank you, John.
There you have it: Logikworx is now in the lower midmarket.
*Rod Kowalsky is Executive Vice President of Logikworx.