The Managed Services business was created from the traditional suite of desktop management, backup, network and server support. Most MSPs now are offering various services outside the traditional managed infrastructure scope: application management, additional security or virtual CIO services.
This is the evolution of managed services, and the right way, however many MSPs have just reactively added some of these services to stay relevant to their customers and protect the core MSP services. They might call themselves "your IT department." Let's check out why it’s a problem and what to do about it.
The problemsHere’s a quick overview of the pitfall of adding more to our managed services delivery without proportional monetization.
This all means if you keep doing the one-size-fits-all "we are your IT department" package, you’ll be lowering your shield to where the competition can hurt you and also dulling your sword in terms of new client acquisition.
What to doLet's quickly cover some strategies you can apply to make this trend your friend and not your enemy.
Because all your services are going to be in bundles your tech people will have no difficulty knowing what each client has. Also because most of the categories are not related to their infrastructure job, we aren’t creating more complexity on the execution side.
Benefits and tradeoffs
Let's see some pros and cons for this strategy
Consider the benefits and tradeoffs of moving to a different pricing model. Your managed service will be evolving in a more rapid pace as client needs evolve. It’s up to you to create a model which will manage these changes reliably. If not, you’ll have a very stiff and rigid model giving away a tremendous amount of value and sacrificing opportunity and service all at once.
MSP 2.0 blog
The BLOG discusses more about the future of doing managed services in the Cloud era. Design, develop services, create value propositions, manage the sales funnel, deliver the services, create a world class team, and win.