CV_MarApr_22_2

of between $1,001 and $2,500 (28 percent) and $7,501 and $10,000 (2 percent). On a per-device price model, 32 percent of MSPs charged between $51 and $100 per device, per month. How, though, are they pricing their SaaS security monitoring? According to its recent application security insights report, SaaS Alerts noted that determining the cost for any new services category – and in particular one so critical to promoting nonstop operations – can be “a bit experimental,” with numerous factors entering into this decision. Armed with this knowledge, here are the common price models, identified by SaaS Alerts, that most MSPs adopt with regards to their SaaS security monitoring services. Add-On Availability Per SaaS Alerts, nearly half (45 percent) of all providers incorporate an “add-on” fee of $1 to $5 per user, per month, for SaaS security monitoring. In these cases, it was noted that providers tend to make this threat detection a mandatory part of their service, some going as far as to require a “decline of service” upon signup, if refusing this coverage. At a minimum, MSPs tend to “strongly encourage” its use, however possible. Under this model, SaaS Alerts noted that the average MSP charges as much as $24,000 per year (average add-on price of $2 for 1,000 users over 12 months) for SaaS security monitoring. Bundled with Cybersecurity Options An additional one-quarter of providers feature SaaS security monitoring as an option within an existing bundle. While not exclusively focused on security monitoring services, these inclusive bundles tend to fetch anywhere from $20 to $40 per seat, per month. With this, an MSP covering 500 users with a $30 average bundle can generate $180,000 annually, in revenue. Included within Core Service Package One in five MSPs focus on SaaS security monitoring as part of an existing managed service package. For this reason, the actual cost for SIM can be difficult to gauge. Providers tend to list the service as what SaaS Alerts calls a “competitive distinction,” instead absorbing it into the associated, overarching price structure. Although cost can be difficult to delineate, the all-inclusive model does tend to fetch between $150 and $300 per user, per month. “Prospecting” Tool About 10 percent of MSPs employ on-demand security monitoring as a “prospecting” tool. With this mindset, the organization signs up for, say, a $100/month “minimum” plan, and the MSP adds it on as a sales technique for ascertaining security holes. “We all have been using network assessments for years to land deals,” said an anonymous MSP to SaaS Alerts. “With the network changing, SaaS assessments are new and provide a lot of value to the prospect or customer. If I can close just one average size recurring customer of $3,500/month from a SaaS cyber assessment and I spend $1,200/year for a $42,000/year account, that is a return I will take all day long.” Hybrid Approach For many, cost structure can be far more fluid. SaaS Alerts noted that many providers opt for some combination of the four aforementioned strategies. No matter which particular model is selected, however, there is great opportunity – and competitive advantage – for the modern MSP and the end user. Regardless of what they charge for SaaS security monitoring, 96 percent of surveyed MSPs told Kaseya that integrating core applications is “important” to business function, while 78 percent noted that it “helps drive bottom-line profits.” Kaseya also indicated that 30 percent of those providers experienced a gross margin of 11 to 20 percent for their cloud services, while those with a gross margin of more than 30 percent increased slightly, year to year, to 22 percent. The focus – whether on security monitoring or another area – needs to be on seamless integration and minimized end-user involvement. Cybersecurity, as we know it, will not be going away in the near future. As malicious bad actors continue to expand on their own capabilities – subsequently exposing new holes and weaknesses – the need for rigorous security monitoring will only intensify. After all, businesses of any size need a partner that can be relied on to provide security to keep operations efficient, productive, safe and continuously running. And in a world where information integrity and reputation are always at stake, can any cost really be too expensive? o CYBER PATROL Critical Role of Remote Monitoring and Management at MSPs Importance of RMM to Business Success All Respondents Americas APAC EMEA Very important or critical 65% 65% 64% 71% Somewhat important 27% 28% 24% 19% Not important 8% 7% 11% 10% Source: Kaseya MSP sur veys MSP Customer Challenges Top 3 Problems for MSP Clients in 2022 All Respondents Americas APAC EMEA Security 52% 52% 48% 54% BC/DR 38% 39% 28% 40% Remote workers 36% 36% 31% 38% Source: Kaseya MSP sur veys 24 CHANNELV ISION | MARCH - APRIL 2022

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