Managed Service Provider Wins Tech Healthcare Deal

INX Inc., an infrastructure solutions integrator and MSP, recently landed a five-year managed services pact with a community health organization in Southern California. INX, based in Dallas, said the deal with Community Memorial Health System (CMHS), a not-for-profit in Ventura County, is worth $750,000. Here are some details and some key takeaways for peer MSPs.

CMHS consists of two hospitals and several family-practice health centers. Under the contract, INX will manage the health system’s data and telecommunications networks. According to INX, the infrastructure includes Cisco Unified Communications System, which covers all CMHS locations.

The healthcare pact underscores how a company can grow its managed services business within an account. INX had previously provided local engineering support for CMHS and delivered a number of project engagements. Those projects include an Exchange 2010 deployment on VMware. INX said its project history at CMHS contributed to its selection for the managed services contract.

The managed services arrangement also points to a growing source of business in the healthcare field: community hospitals. Those facilities are typically large enough to have complex technical issues, but are small enough to require outside assistance.

In another example, HMS Direct, the healthcare MSP subsidiary of Nashville-based Health Management Systems, earlier this year announced plans to expand its data center capacity to support its community hospital business.

Healthcare Vertical Focus

Healthcare is one of INX’s vertical focuses, with other markets of note including education and government. An INX investor presentation described three main practice areas:
  1. Enabling Technologies (routing, switching, security, wireless)
  2. Data Center/Cloud Computing (compute, storage, virtualization); and
  3. Unified Communications (IP telephony, collaboration, mobile solutions).
Service offerings include professional services -- consulting and implementation -- and managed services. In the managed services category, INX said it provides hosting and support across the three practice areas.

As for business mix, products contributed the bulk of the company’s revenue in 2010, about 87 percent, according to the investor presentation. The company counts Cisco Systems, EMC, NetApp and VMware among its technology partners.

Professional services accounted for 10.3 percent of revenue, while managed services produced 2.6 percent. The presentation indicated managed services having the greatest gross margin potential.

Wins such as CMHS will further propel the managed services side of the business.
TAGS: Strategy
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