Sept/Oct 19 - ChannelVision Magazine

As for one thing that appears pretty universal, MSPs apparently could use help creating repeatable, standard- ized packages of fully managed ser- vices that can be delivered to different types of end users. That concept may run counter to the notion of being a “trusted advisor that knows your busi- ness and tailors services to fit your business,” but according to research by Paul Dippell, CEO of consultant firm Service Leadership, the highest per- forming MSPs serve 90 percent of their customers with the same technology stack. In other words, MSPs that offer the same managed service package to the vast majority of their customers are more profitably. Dippell’s conclusion was based on an examination of 80 metrics of financial and operational performance that measure MSP success. The “operationally mature” companies signaled out by Dippell make more money and grow faster than their peers and hit profit margins of more than 18 percent. Yet, according to the CPI survey, most MSPs are mainly offering a la carte or even entirely bespoke services. Out of the 315 responding MSPs, more than two thirds said they were not offering a standard, fully managed package to the majority of their cus- tomers. Some 26 percent said they were offering an a la carte menu of services, where customers can pick and choose what they want, while a quarter are offering a completely bespoke managed service, said CPI researchers. “If you apply Dippell’s principles of a high-performance MSP to our data, you would have to conclude that most MSPs are adopting an operationally immature and inefficient business model,” said the CPI study. “Providing a bespoke service to each customer will likely stretch an MSP’s capabilities to its limits, as they try to manage doz- ens or even hundreds of contrasting SLAs and expectations.” Product Matters In terms of what drives loyalty among MSPs to existing vendors, an “overwhelming majority” cited an “ex- cellent product,” showed the CPI sur- vey. On a scale of 1 to 10, 41 percent gave product excellence a number 10 rating, while 26 percent gave it a num- ber 9 rating. The second-most popular pick out of seven available options was for vendors to “stay true to their word.” About a quarter scored this a 10, while 18 percent ranked it as 9 out of 10. channel management What are key thi gs that makes you st y with your current vendor/s? (where 1=not important at all, 10=extremely important) Source: Channel Partner Insight, MSP survey S t Which of these options best summarises your firm’s approach to how you pitch your managed services offering to customers? Source: Channel Partner Insight, MSP survey Wherever possible, we sell a standard, fully managed package that is the same for all or at least most clients We offer a Gold, Silver and Bronze-style graded system We have an a la carte menu, where customers can pick which services they want and don’t want Most engagements are completely bespoke 24.1% 32.1% 25.7% 18.1% An excellent product True to their word 50% 40% 30% 20% 10% 0% 25% 20% 15% 10% 5% 0% 1 10 What do you most value in your vendors’ MSP programs? (where 1=not important at all, 10=extremely important) Better margins than with other vendors Rebates 25% 20% 20% 15% B p So S 40 35 30 25 20 15 10 5 0 Capacity (sq ft. M) Percent Source: 451 What are key things that makes you stay with your current vendor/s? (where 1=not important at all, 10=extremely important) Source: Channel Partner Insight, MSP survey Schools to Classr Source: MeriTalk 0% 20% 40% 60% 80% 100% Reduced network complexity Increased visibility Which of these options best summarises your firm’s approach to how you pitch your managed services offering to customers? Source: Channel Partner Insight, MSP survey Wherever possible, we sell a standard, fully managed package that is the same for all or at least most clients We off r Gold, Silv r and Bronze-styl graded system We have an a la carte menu, where customers can pick which services they want and don’t want Most engagements are completely bespoke 24.1% 32.1% 25.7% 18.1% An excellent product True to their word 50% 40% 30% 20% 10% 0% 25% 20% 15% 10% 5% 0% 1 10 T Busines purchas Data C Constru Source: Spice Source: IHS M 38% 40% 35% 30% 25% 20% 15% 10% 5% 0% CEO/Presid 0 2 4 6 8 10 12 North A Capacity (sq ft. M) 44% 42% 36% 45% 36 Channel Vision | September - October, 2019