Beyond hardware: How IT partners can grow with value-added software-defined services

IT services are becoming increasingly software-defined, creating new opportunities for IT solution providers to move beyond traditional hardware sales. IT solution providers that remain focused on hardware sales are missing out on lucrative opportunities. For small and medium-sized businesses (SMBs), that shift is especially important. Many lack the internal resources and expertise to effectively manage, protect, and modernize their IT environments and are therefore looking for a trusted IT solution provider to fill those gaps.  

At the same time, SMBs are navigating tight budgets, growing cyber threats, aging infrastructure, and evolving technology requirements. IT solution providers can help them in all these areas with cost-effective services to support and protect their IT environments.

software defined services

The market reflects this shift. CRN’s February 2026 MSP 500 analysis highlights the IT industry’s “rapid shift to a services-led model in the channel.” It cites estimates valuing the managed services market at $330 billion to $401 billion in 2025, with substantial growth forecast in the years ahead. This opportunity is significant for providers as well. With hardware margins under pressure, future growth increasingly depends on value-added and recurring services that strengthen customer relationships and create new revenue streams. With that in mind, here are some value-add service options to consider adding to their portfolio.

Monitoring as a Service

Remote monitoring is one of the most valuable services providers can offer. It enables them to centralize visibility and consolidate data across multiple locations and disparate systems, helping their customers maintain reliable IT operations without adding internal resources. Remote monitoring also enables providers to identify and respond to issues and potential cyber incidents on customers’ behalf.  It’s a significant value-add that drives retention, with customers returning to you when they need additional services.

Predictive monitoring

Once monitoring platforms are in place, the next logical step is predictive monitoring. It allows IT solution providers to identify problems before they can cause downtime. A comprehensive predictive monitoring offering protects customer IT environments from both cyber and physical threats. It prevents unauthorized access to IT racks and equipment with surveillance cameras and remote-controlled door locks. Predictive monitoring tools also track environmental conditions such as temperature, humidity, and smoke to help prevent equipment damage.

Asset management

Managing client assets is more important than ever as mandates such as the Cyber Resilience Act (CRA) take effect across the European Union, as well as country-specific directives concerning resilience and energy efficiency. Solution providers can help customers by leveraging audit, discovery, and modeling tools across their infrastructure to manage and update data and run audit reports for compliance. Asset management is a pressing need for customers, creating another significant value-add opportunity and improving customer retention.

Computational Fluid Dynamics (CFD) as a Service

For providers with more mature business models, the next value-added offering worth considering is CFD as a service. This involves using remote services to monitor airflow and thermal conditions in data centers and server rooms, optimizing cooling efficiency and reducing energy costs. As companies adopt AI, the data centers and server rooms that host AI workloads require liquid cooling, as traditional air cooling cannot handle the extreme heat generated by GPUs. CFD helps data center managers and IT directors understand and optimize airflow and temperature levels to avoid issues that can damage equipment.

How to build a more services-focused business

Schneider Electric provides the solutions, enablement resources, and expertise to help IT solution providers expand their services offerings. Providers can leverage offerings such as our EcoStruxureTM IT platform and NetbotzTM to deliver monitoring services. EcoStruxure IT Advisor lets you create digital twins of client environments to manage their assets.

We also offer a host of partner enablement tools, including self-paced online training, certification programs, and marketing and sales kits, to help you add value and pursue new business opportunities. For instance, we now offer a CFD certification through Schneider Electric University to prepare you for AI-related thermal management opportunities. As IT becomes increasingly software-defined, the opportunities for IT solution providers extend well beyond hardware sales. SMB customers need ongoing value-added services to monitor, manage, and modernize their IT environments. Schneider Electric can provide technology, training, and support to help partners make that shift and build a more competitive, service-driven business for the future. Learn more by visiting MySchneider IT Partner Program.

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