{"id":65433,"date":"2025-06-28T03:47:51","date_gmt":"2025-06-28T10:47:51","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=65433"},"modified":"2025-06-29T06:31:53","modified_gmt":"2025-06-29T13:31:53","slug":"managed-it-and-solutions-growth-sends-function4-blasting-through-space-city","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/dealer-spotlight\/2025\/06\/managed-it-and-solutions-growth-sends-function4-blasting-through-space-city\/","title":{"rendered":"Managed IT and Solutions Growth Sends Function4 Blasting Through Space City"},"content":{"rendered":"\n<p>He may not be a storyteller by trade, but Bill Patsouras knows the golden rule to follow when spinning a yarn: never let the truth get in the way of a good story. So when the subject of how Function4 got to be called Function4 comes up, there are at least three different stories floating around the offices of the Sugar Land, Texas-based dealership. This is where legend supersedes fact\u2014or at least it should.<\/p>\n\n\n\n<p>Patsouras, one-third of the ownership trio that also features Bob Evans and Paul Skinner, opted for the sexy\/inspirational version. In that, the 4 portion is a nod to ownership asking team members to follow the company\u2019s five core values in its daily interactions. But, since the 4\/5 math didn\u2019t work, the 4 is officially tied to the dealer\u2019s four cornerstone offerings: managed IT, imaging, office supplies\/furniture and solutions.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"610\" height=\"458\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/9.jpg\" alt=\"\" class=\"wp-image-65571\" srcset=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/9.jpg 610w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/9-300x225.jpg 300w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><figcaption>Function4 owners (from left) Bill Patsouras, Bob Evans and Paul Skinner&nbsp;<\/figcaption><\/figure>\n\n\n\n<p>An even sexier story is the growth Function4 has enjoyed recently. Managed IT witnessed a 40% year-over-year increase, and solutions have catapulted 50%. Even Function4\u2019s imaging business\u2014consisting of Konica Minolta, Sharp, Kyocera and Xerox gear\u2014ticked up 3%\u20134% in Q1 of 2025 compared to the previous quarter.<\/p>\n\n\n\n<p>\u201cOverall, we\u2019ve been enjoying solid growth,\u201d Patsouras noted. \u201cWe were suffering on the imaging side with the same woes as everyone else\u2014margins getting squeezed and volumes going down. But in the first quarter of 2025, we closed out a deal or two that got things moving in the right direction.\u201d<\/p>\n\n\n\n<p>Annual revenues have climbed beyond $25 million, and the company has remained competitive in a rigorously contested Houston market with reach into Beaumont and Texas\u2019 northeastern quadrant via Paris, Sherman and Denison. Lake Charles, Louisiana and portions of southeastern Oklahoma also paint a picture of Function4\u2019s regional markets. The dealer boasts strength in a number of business verticals, from manufacturing and health care to education.<\/p>\n\n\n\n<p class=\"has-vivid-cyan-blue-color has-text-color\"><strong>Managed Marvels<\/strong><\/p>\n\n\n\n<p>The managed IT success is a product of reps focusing on the dealer\u2019s target market. Patsouras appreciates the value of cultivating sticky relationships with clients, noting that, like changing doctors or lawyers, it\u2019s human nature to avoid it when there\u2019s a lot of perceived work. And like with a dentist, immediate customer care is needed when pain arrives. Likewise, Function4 can handle client emergencies.<\/p>\n\n\n\n<p>The Function4 managed IT menu includes network monitoring, help desk, business continuity and cybersecurity. On the latter count, threat detection, remediation and a security operations center are some of the cybersecurity anchors. Ransomware continues to be a growing concern, and Function4\u2019s endpoint security carries with it a $1 million warranty to cover costs in the event protection\/remediation fail.<\/p>\n\n\n\n<p>Cybersecurity insurance is a concern that arguably doesn\u2019t get the attention it merits. Policy loopholes can often leave clients unwittingly exposed. Early last year, the dealer entered into a partnership with techrug to create an insurance program without the clauses that leave SMBs vulnerable. The program features \u201cdual claim coverage\u201d that insures both the tech provider and the client in the event of a breach. Function4 also partners with two Houston-based insurance brokers.<\/p>\n\n\n\n<p>Patsouras notes that educational opportunities offered by Function4, from webinars to lunch-and-learns, help draw more attention to cyber dangers and the tools available to combat them. But he sees much work needed to be done to help scale the offerings.<\/p>\n\n\n\n<p>The growth in solutions, led by M-Files and PaperCut, has been a strong complement as a revenue generator. The addition of Hyland\u2019s OnBase content management solution, along with other forms-related software, will help fill in the gaps of customer needs.<\/p>\n\n\n\n<p>\u201cOur folks have done a really good job identifying needs for workflow, and M-Files excels at helping people build out processes that involve paper and the things we sell,\u201d Patsouras said. \u201cWe\u2019ve spent a lot of time with our sales people, making sure they can identify opportunities based on verticals. The talk track can cover collections or forms creation and really all the buzz words that get the customers\u2019 attention when our sales reps are prospecting, making calls or having sit-down meetings. Plus, the subject-matter expert we have is in the field constantly with reps and it\u2019s driving that business.\u201d<\/p>\n\n\n\n<p class=\"has-vivid-cyan-blue-color has-text-color\"><strong>Gracious Host<\/strong><\/p>\n\n\n\n<p>The aforementioned cybersecurity learning platforms only scratch the surface of how Function4 is leveraging hosted events to reap either immediate or down-the-road business. Patsouras dubbed them the \u201ccherry on top,\u201d as many attendees are generally on the verge of making the purchasing decision. Those clients are \u201c80% there\u201d and the events are fantastic deal closers. Likewise, a trip to a ballgame is a way to say \u2018thank you\u2019 to those clients who\u2019ve already signed on.<\/p>\n\n\n\n<p>The educational events\u2014done in tandem with partners such as ConnectWise\u2014are great for enhancing the comfort level of clients\/prospects and their Function4 sales reps on primary topics including IT and solutions.The dealer also piggybacks off chamber of commerce, Better Business Bureau and other meetings held by business groups and associations and provides presentations on AI, cybersecurity insurance and other topics.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"610\" height=\"433\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/Function4Tour.jpg\" alt=\"\" class=\"wp-image-65439\" srcset=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/Function4Tour.jpg 610w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/Function4Tour-300x213.jpg 300w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><figcaption>Bill Patsouras (left) gives fellow office technology dealers a tour during the American Co-Op peer group meeting earlier this year (photo courtesy Industry Analysts\/Andy Slawetsky)<\/figcaption><\/figure>\n\n\n\n<p>Patsouras points out it can be difficult to bring people to a downtown restaurant in Houston, America\u2019s fourth most populated city\u2015one that\u2019s light on public transportation and heavy on traffic. Thus, networking groups with preplanned meetings represent a great opportunity to let Function4 flex its educational muscle.<\/p>\n\n\n\n<p>\u201cWhat\u2019s interesting is how people react when they realize we\u2019re not trying to sell them something,\u201d he noted. \u201cWe\u2019re just truly trying to provide the education, and it\u2019s amazing how many folks will connect and start asking questions that eventually will lead to a sales cycle.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"610\" height=\"458\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/4.jpg\" alt=\"\" class=\"wp-image-65437\" srcset=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/4.jpg 610w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/4-300x225.jpg 300w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><figcaption>Function4 team members (from left): Johnny Arline, John Brown, Chris Owens, Harold Brown and Bill Patsouras<\/figcaption><\/figure>\n\n\n\n<p>While Function4 did just two events in 2024, it\u2019s ahead of schedule this year courtesy of the networking groups. The chamber speaking engagements provide the chance to reach maybe 200 people, although not all fit the dealer\u2019s model. The opportunity to present extends into community events such as economic development sessions to demonstrate their knowledge in areas that have wide appeal across business networks.<\/p>\n\n\n\n<p>These presentations only augment the solid reputation Function4 has within the communities where it does business. The reputation also goes to the core of the dealer and what it represents. For example, Patsouras notes his company offers a Peace of Mind Guarantee\u2014if the product or service doesn\u2019t perform for the client as promised, Function4 will cancel the contract, pick up the cost, etc. The client is absolved of all obligation. In 15 years, the guarantee has been triggered once or twice.<\/p>\n\n\n\n<p class=\"has-vivid-cyan-blue-color has-text-color\"><strong>Peer Prominence<\/strong><\/p>\n\n\n\n<p>Function4 is also a household name within the dealer community on the strength of its efforts in a pair of industry peer groups. Patsouras participates with the Business Products Council Association (BPCA), and Evans is a member of the American Co-op. Back in April, American Co-ops\u2019 meeting was held at the dealer\u2019s Sugar Land headquarters where companies such as Konica Minolta, PEAC Solutions and GreatAmerica Financial Services gave presentations. Both Evans and Patsouras provided tours for the dealer members.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"610\" height=\"383\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/NewSkinners.jpg\" alt=\"\" class=\"wp-image-65440\" srcset=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/NewSkinners.jpg 610w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/NewSkinners-300x188.jpg 300w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><figcaption>Function4 leadership generations: Paul Skinner (left) and his son, Ryan, branch manager<\/figcaption><\/figure>\n\n\n\n<p>Beyond best practices, Patsouras sees the peer group\u2019s value proposition as confirmation of what Function4 is doing. \u201cFor the most part, we\u2019re all doing the same thing. The value to me is that if I want to try something different, I can ask if any of the members have done this and find out if it worked great or failed miserably and why,\u201d he said. \u201cSo I tend to view it personally as more of a validation point.<\/p>\n\n\n\n<p>\u201cIt\u2019s interesting to see how dealers have set expectation levels based on the environments they grew up in. You\u2019ll run across executives whose expectation levels are double that of yours, and they\u2019re hitting their goals. When dealers are doing fantastic things, it makes you understand the potential of this business and know that it can be done. It\u2019s just a matter of putting forth the energy, effort and commitment.\u201d<\/p>\n\n\n\n<p>As Function4 continues to evaluate growth vehicles, Patsouras wouldn\u2019t rule out making an acquisition. While not a noted M&amp;A player, the dealer has made some additions in the past. More recently, Function4 came close to onboarding a managed IT company before the deal fizzled. Patsouras said the owners are also evaluating imaging-based prospects. Houston doesn\u2019t lack for M&amp;A suitors, with DEX Imaging and Novatech being active in the region. In the smaller geographic markets, Function4 entertains inquiries in which the prospects also truly value their team members. Patsouras is optimistic about future acquisitions.<\/p>\n\n\n\n<p class=\"has-vivid-cyan-blue-color has-text-color\"><strong>Leveraging AI Magic<\/strong><\/p>\n\n\n\n<p>Function4 is turning to artificial intelligence (AI) to help augment the net-new course toward growth, and its sales reps are leveraging a couple of those tools on the prospecting side. The dealer\u2019s also been testing out managed IT applications on the job ticketing end with an eye toward clearing out level-one tech calls. Patsouras notes the company is still in the early stages of determining how AI can simplify business internally and is bullish on the tech\u2019s potential.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"610\" height=\"642\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/3.jpg\" alt=\"\" class=\"wp-image-65441\" srcset=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/3.jpg 610w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/3-285x300.jpg 285w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><\/figure>\n\n\n\n<p>\u201cOur sales people use it a lot for research, finding out who the proper contacts are, and for doing comparisons,\u201d he said. \u201cAlso, it\u2019s fascinating to see how much information is available on your competitors if you know how to ask the right questions to Grok or ChatGPT.\u201d<\/p>\n\n\n\n<p>Expanding revenue and profit will also require redeveloping the sales force, according to Patsouras, which will require a measured approach. It\u2019s a matter of \u201cseparating the hunters and the farmers,\u201d and imaging growth will entail Function4 taking share away from competitors even more so than it\u2019s doing currently.<\/p>\n\n\n\n<p>\u201cWe\u2019re really looking at ways to retrain, redevelop and redefine what our sales force looks like,\u201d he said. \u201cI think everyone\u2019s going through that same paradigm shift. I\u2019ve sat through enough peer group meetings and listened to enough manufacturers to know that you can\u2019t keep paying people what we pay them to sell customers less at a lower rate on service and still keep the business healthy.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"610\" height=\"527\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/BobEvans.jpg\" alt=\"\" class=\"wp-image-65442\" srcset=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/BobEvans.jpg 610w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2025\/06\/BobEvans-300x259.jpg 300w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><figcaption>Bob Evans addresses members at the American Co-Op Group meeting hosted by Function4<br>(photo courtesy Industry Analysts\/Andy Slawetsky)<\/figcaption><\/figure>\n\n\n\n<p>Function4 has set revenue goals through its Entrepreneurial Operating System. It\u2019s the decline in meter clicks that has Patsouras concerned, as margins continue to be squeezed and the general uncertainty about tariffs\u2014not to mention the price increases already implemented by OEMs\u2014make the crystal ball fuzzier. That leaves the dealer to concentrate on variables within its control.<\/p>\n\n\n\n<p>\u201cSuccessfully navigating these obstacles, making sure we do the right things, picking up zero-based business and maintaining what we have\u2014that\u2019s what success looks like in my eyes,\u201d he said. \u201cWe need to navigate through the craziness of pricing uncertainty. But we\u2019re in a good position to finish 2025 strong.\u201d <\/p>\n\n\n\n<p class=\"has-pale-cyan-blue-background-color has-background\"><strong>Living the Values: What it Means to Belong in the Function4 Family<\/strong><br><br>What\u2019s the secret behind the success of Function4? It\u2019s not about money and never has been, notes owner Bill Patsouras. Fellow owners Bob Evans and Paul Skinner would agree that it\u2019s the shared purpose of taking care of the dealer\u2019s 100 employees and, by extension, their families. It\u2019s believing in, and living by, an honorable set of values. It\u2019s sharing a purpose.<br><br>\u201cIt\u2019s good to belong to something bigger than yourself,\u201d Patsouras offered.<br><br>The dealer has five core values\u2014accountable, trustworthy, integrity, teamwork and embrace change\u2014that govern how it conducts business, including how it hires and fires. These values resonate with execs and staff alike. They\u2019re like Jenga pieces that can trigger a disaster when taken away.<br><br>\u201cEveryone knows if the integrity piece falls away, they\u2019re not going to work here. You have to be accountable, and if you can\u2019t follow teamwork, embrace change or be honest with me, we\u2019re going to have problems,\u201d he added.<br><br>The loyalty and shared sense of purpose far outweigh any negatives. \u201cWe work well together, and we all look out for each other,\u201d Patsouras said. \u201cOur employees always come first, and they take care of our customers.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>He may not be a storyteller by trade, but Bill Patsouras knows the golden rule to follow when spinning a yarn: never let the truth get in the way of a good story. So when the subject of how Function4 got to be called Function4 comes up, there are at least three different stories floating around the offices of the Sugar Land, Texas-based dealership. This is where legend supersedes fact\u2014or at least it should. Patsouras, one-third of the ownership trio that also features Bob Evans and Paul Skinner, opted for the sexy\/inspirational version. In that, the 4 portion is a nod to ownership asking team members to follow the company\u2019s five core values in its daily interactions. But, since the 4\/5 math didn\u2019t work, the 4 is officially tied to the dealer\u2019s four cornerstone offerings: managed IT, imaging, office supplies\/furniture and solutions. An even sexier story is the growth Function4 has enjoyed recently. Managed IT witnessed a 40% year-over-year increase, and solutions have catapulted 50%. Even Function4\u2019s imaging business\u2014consisting of Konica Minolta, Sharp, Kyocera and Xerox gear\u2014ticked up 3%\u20134% in Q1 of 2025 compared to the previous quarter. \u201cOverall, we\u2019ve been enjoying solid growth,\u201d Patsouras noted. \u201cWe were suffering on the imaging side with the same woes as everyone else\u2014margins getting squeezed and volumes going down. But in the first quarter of 2025, we closed out a deal or two that got things moving in the right direction.\u201d Annual revenues have climbed beyond $25 million, and the company has remained competitive in a rigorously contested Houston market with reach into Beaumont and Texas\u2019 northeastern quadrant via Paris, Sherman and Denison. Lake Charles, Louisiana and portions of southeastern Oklahoma also paint a picture of Function4\u2019s regional markets. The dealer boasts strength in a number of business verticals, from manufacturing and health care to education. Managed Marvels The managed IT success is a product of reps focusing on the dealer\u2019s target market. Patsouras appreciates the value of cultivating sticky relationships with clients, noting that, like changing doctors or lawyers, it\u2019s human nature to avoid it when there\u2019s a lot of perceived work. And like with a dentist, immediate customer care is needed when pain arrives. Likewise, Function4 can handle client emergencies. The Function4 managed IT menu includes network monitoring, help desk, business continuity and cybersecurity. On the latter count, threat detection, remediation and a security operations center are some of the cybersecurity anchors. Ransomware continues to be a growing concern, and Function4\u2019s endpoint security carries with it a $1 million warranty to cover costs in the event protection\/remediation fail. Cybersecurity insurance is a concern that arguably doesn\u2019t get the attention it merits. Policy loopholes can often leave clients unwittingly exposed. Early last year, the dealer entered into a partnership with techrug to create an insurance program without the clauses that leave SMBs vulnerable. The program features \u201cdual claim coverage\u201d that insures both the tech provider and the client in the event of a breach. Function4 also partners with two Houston-based insurance brokers. Patsouras notes that educational opportunities offered by Function4, from webinars to lunch-and-learns, help draw more attention to cyber dangers and the tools available to combat them. But he sees much work needed to be done to help scale the offerings. The growth in solutions, led by M-Files and PaperCut, has been a strong complement as a revenue generator. The addition of Hyland\u2019s OnBase content management solution, along with other forms-related software, will help fill in the gaps of customer needs. \u201cOur folks have done a really good job identifying needs for workflow, and M-Files excels at helping people build out processes that involve paper and the things we sell,\u201d Patsouras said. \u201cWe\u2019ve spent a lot of time with our sales people, making sure they can identify opportunities based on verticals. The talk track can cover collections or forms creation and really all the buzz words that get the customers\u2019 attention when our sales reps are prospecting, making calls or having sit-down meetings. Plus, the subject-matter expert we have is in the field constantly with reps and it\u2019s driving that business.\u201d Gracious Host The aforementioned cybersecurity learning platforms only scratch the surface of how Function4 is leveraging hosted events to reap either immediate or down-the-road business. Patsouras dubbed them the \u201ccherry on top,\u201d as many attendees are generally on the verge of making the purchasing decision. Those clients are \u201c80% there\u201d and the events are fantastic deal closers. Likewise, a trip to a ballgame is a way to say \u2018thank you\u2019 to those clients who\u2019ve already signed on. The educational events\u2014done in tandem with partners such as ConnectWise\u2014are great for enhancing the comfort level of clients\/prospects and their Function4 sales reps on primary topics including IT and solutions.The dealer also piggybacks off chamber of commerce, Better Business Bureau and other meetings held by business groups and associations and provides presentations on AI, cybersecurity insurance and other topics. Patsouras points out it can be difficult to bring people to a downtown restaurant in Houston, America\u2019s fourth most populated city\u2015one that\u2019s light on public transportation and heavy on traffic. Thus, networking groups with preplanned meetings represent a great opportunity to let Function4 flex its educational muscle. \u201cWhat\u2019s interesting is how people react when they realize we\u2019re not trying to sell them something,\u201d he noted. \u201cWe\u2019re just truly trying to provide the education, and it\u2019s amazing how many folks will connect and start asking questions that eventually will lead to a sales cycle.\u201d While Function4 did just two events in 2024, it\u2019s ahead of schedule this year courtesy of the networking groups. The chamber speaking engagements provide the chance to reach maybe 200 people, although not all fit the dealer\u2019s model. The opportunity to present extends into community events such as economic development sessions to demonstrate their knowledge in areas that have wide appeal across business networks. These presentations only augment the solid reputation Function4 has within the communities where it does business. The reputation also goes to the core of the dealer and [&hellip;]<\/p>\n","protected":false},"author":166,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1643],"tags":[],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/65433"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/166"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=65433"}],"version-history":[{"count":8,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/65433\/revisions"}],"predecessor-version":[{"id":65584,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/65433\/revisions\/65584"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=65433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=65433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=65433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}