The Entanglement Test: When Unbundling Works and When It Doesn’t

The Wholesale Option is not a fit for every situation. The key question is whether the reseller’s role in your current arrangement can be cleanly separated from the services you actually use. We call this the entanglement test.

A reseller’s role has two sub-functions. The advisory function is the work of figuring out what to buy and why: evaluating providers, understanding requirements, designing the solution. The transactional function is the work of executing the purchase: processing the order, managing provider paperwork, handling renewals. In many arrangements, these two sub-functions are performed by the same party and bundled into a single relationship. The question is whether they can be unbundled.

If they can, the Wholesale Option applies cleanly. You keep whatever advisory resources actually add value (your in-house team, an independent consultant, a specialist you hire for a specific project) and route the transactional function through us. The cost of the transactional function drops dramatically, and your advisory resources remain intact.

If they cannot, the arrangement is entangled, and the math changes.

The most common case of entanglement is an MSP that is both managing your environment and reselling the products you use. The product resale subsidizes the managed service pricing. If you pull the resale out and put it through a wholesale path, the MSP’s managed service economics change, and they will typically respond by raising their service rates. In some cases, the combined cost of a wholesale resale plus a repriced managed service is the same as or higher than the bundled arrangement you had before. In those cases, staying put is the right call.

The test is not whether services are being provided. The test is whether the resale function and the service function can be priced independently without triggering a corresponding repricing of the service side. A well-structured MSP relationship where the managed service is priced on its own merits (and the product resale is genuinely incidental) passes the test. A relationship where the resale is the economic glue holding the managed service pricing together does not.

This is one of the places where TechTrust’s judgment matters most. We do not recommend unbundling for the sake of unbundling. We look at your specific arrangement, run the entanglement test, and tell you honestly whether the Wholesale Option will produce net savings or simply shift costs around. If it won’t, we say so. The intelligence we offer is not in the direction of pushing every client to wholesale. It is in the direction of telling you clearly where wholesale fits and where it doesn’t.

More To Explore

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The Wholesale Option: What It Is and When It Fits

What You Can Do

The 1-2-3 Formula: How We Execute Your Wholesale Option

Want to See How This Translates to Your World?

We’re happy to show you. Give us a few minutes and we’ll map the conflicts around your providers, what they’re costing you, and what your options are.

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