Comments on: The Top Three Challenges Facing MSPs http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/ Managed Services & Cloud Services Blog for VARs & MSPs Tue, 14 Feb 2012 15:37:02 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Joe Panettieri http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/comment-page-1/#comment-22660 Joe Panettieri Fri, 25 Jul 2008 01:13:40 +0000 http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/#comment-22660 John: I think your statement that "business owners...still run their business like a home rather than a true business or enterprise" actually represents an opportunity. Those business owners understand flat-fee cable modems and broadband. If we can connect the dots between that model and the business value of managed services, perhaps entrepreneurs would better understand what MSPs have to offer. Still, we have to avoid tech jargon. If you can show real business value (how much spam you block, how much uptime you guarantee, how you ensure how an entrepreneur's mobile workforce stays connected and customer-facing rather than in the office), then biz owners will be more apt to sign on the dotted line. John: I think your statement that “business owners…still run their business like a home rather than a true business or enterprise” actually represents an opportunity. Those business owners understand flat-fee cable modems and broadband.

If we can connect the dots between that model and the business value of managed services, perhaps entrepreneurs would better understand what MSPs have to offer.

Still, we have to avoid tech jargon. If you can show real business value (how much spam you block, how much uptime you guarantee, how you ensure how an entrepreneur’s mobile workforce stays connected and customer-facing rather than in the office), then biz owners will be more apt to sign on the dotted line.

]]> By: StuFinancesTech http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/comment-page-1/#comment-22637 StuFinancesTech Thu, 24 Jul 2008 19:37:56 +0000 http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/#comment-22637 John, I think its a tough sell cause MSPs talk about technological problems and not business problems. Solving a business problem or avoiding one is what makes the MSP so valuable. I think you guys need to take cues from the insurance industry, cause thats what you are. You are technology and network insurance. You insure that they operate properly so the client can operate their business without worry. You sell business peace of mind the exact same way homeowners insurance gives us peace of mind against a tree falling onto our house. John, I think its a tough sell cause MSPs talk about technological problems and not business problems. Solving a business problem or avoiding one is what makes the MSP so valuable. I think you guys need to take cues from the insurance industry, cause thats what you are. You are technology and network insurance. You insure that they operate properly so the client can operate their business without worry. You sell business peace of mind the exact same way homeowners insurance gives us peace of mind against a tree falling onto our house.

]]> By: John Romero http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/comment-page-1/#comment-22614 John Romero Thu, 24 Jul 2008 15:18:17 +0000 http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/#comment-22614 Mike, I also agree that selling Managed Services is a difficult sell. Business owners by and large still run their business like a home rather than a true business or enterprise. As result they perform no proactive support on their systems and largely do not seem to care..until something bad happens....then it is too late. This area really hasn't dug into the Managed Services and is largely Break-Fix. This is something we are trying to change. Mike, I also agree that selling Managed Services is a difficult sell. Business owners by and large still run their business like a home rather than a true business or enterprise. As result they perform no proactive support on their systems and largely do not seem to care..until something bad happens….then it is too late.

This area really hasn’t dug into the Managed Services and is largely Break-Fix. This is something we are trying to change.

]]> By: mpetrov http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/comment-page-1/#comment-2277 mpetrov Mon, 25 Feb 2008 02:34:04 +0000 http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/#comment-2277 MSP relationship is a relationship of trust. It is very hard to relay to your potential customer that your company can be trusted. People are buying feelings. It is hard to sell something that you cannot feel until you are a few thousand dollars in the relationship. There is another problem that we fight with. If an IT manager is not strong (and we have a lot of them in the industry) they don’t asses a potential MSP, they just hire IBM. They even have a saying for this: “Nobody was firing for hiring IBM.” If IBM (or any big vendor) fail, they say “Hey, IBM failed, then anybody else would fail. So it is not my fault.” It is very tough to sell IT management. Truly to say we could not go outside of “in network” sale. SLAs will not help. In our business you cannot define SLAs without knowing the infrastructure. If client’s infrastructure allows 5 minutes failover redundancy then we can sign 30 min SLA. But if a client has a 24 hours hardware replacement contract and no redundancy you cannot put 1 SLA on such infrastructure. MSP relationship is a relationship of trust. It is very hard to relay to your potential customer that your company can be trusted. People are buying feelings. It is hard to sell something that you cannot feel until you are a few thousand dollars in the relationship.
There is another problem that we fight with. If an IT manager is not strong (and we have a lot of them in the industry) they don’t asses a potential MSP, they just hire IBM. They even have a saying for this: “Nobody was firing for hiring IBM.” If IBM (or any big vendor) fail, they say “Hey, IBM failed, then anybody else would fail. So it is not my fault.”
It is very tough to sell IT management. Truly to say we could not go outside of “in network” sale. SLAs will not help. In our business you cannot define SLAs without knowing the infrastructure. If client’s infrastructure allows 5 minutes failover redundancy then we can sign 30 min SLA. But if a client has a 24 hours hardware replacement contract and no redundancy you cannot put 1 SLA on such infrastructure.

]]> By: Mike Cooch http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/comment-page-1/#comment-1873 Mike Cooch Thu, 14 Feb 2008 04:24:33 +0000 http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/#comment-1873 That's a good point, Joe. Those are all definitely key components of your sales message, and have to been thought through. Mike That’s a good point, Joe. Those are all definitely key components of your sales message, and have to been thought through.

Mike

]]> By: Todd McKendrick http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/comment-page-1/#comment-1868 Todd McKendrick Thu, 14 Feb 2008 02:50:22 +0000 http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/#comment-1868 Mike, I agree with you that the biggest challenge is in sales. In particular the under-selling of the services that the MSP can offer because they have done a poor job selling value against the pain point. I see resellers that price their services the same way to a company that has a $50,000 dollar a year problem or a $2 million dollar a year problem. The MSP's brand is the most important brand in the eyes of the customer. They don't care about the brand of server or firewall. However, as an industry we are doing a dis-service to ourselves and perhaps facilitating the decline of revenue that the average reseller sees from their customer by charging $40 dollars for a desktop and $200 dollars for a server. Do IT Smarter helps VARs and MSPs develop plans that are specific to the pain points we find in the customer environment. Then with the customers help get them to validate what that means in dollars and cents. Only then, do we propose a solution. Come on everybody, let's raise the bar. Sorry for the Soap Box. Mike, I agree with you that the biggest challenge is in sales. In particular the under-selling of the services that the MSP can offer because they have done a poor job selling value against the pain point.

I see resellers that price their services the same way to a company that has a $50,000 dollar a year problem or a $2 million dollar a year problem.

The MSP’s brand is the most important brand in the eyes of the customer. They don’t care about the brand of server or firewall. However, as an industry we are doing a dis-service to ourselves and perhaps facilitating the decline of revenue that the average reseller sees from their customer by charging $40 dollars for a desktop and $200 dollars for a server.

Do IT Smarter helps VARs and MSPs develop plans that are specific to the pain points we find in the customer environment. Then with the customers help get them to validate what that means in dollars and cents. Only then, do we propose a solution.

Come on everybody, let’s raise the bar.

Sorry for the Soap Box.

]]> By: Joe Panettieri http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/comment-page-1/#comment-1864 Joe Panettieri Thu, 14 Feb 2008 00:45:49 +0000 http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/#comment-1864 Actually, I think you're speaking the same language. You can't succeed with MSP sales if you don't understand how to set/negotiate your SLAs, properly establish pricing, and effectively communicate the value of managed services to your customers. In my mind, those are all tied to successful sales activities. Actually, I think you’re speaking the same language. You can’t succeed with MSP sales if you don’t understand how to set/negotiate your SLAs, properly establish pricing, and effectively communicate the value of managed services to your customers. In my mind, those are all tied to successful sales activities.

]]> By: Mike Cooch http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/comment-page-1/#comment-1861 Mike Cooch Thu, 14 Feb 2008 00:09:50 +0000 http://www.mspmentor.net/2008/02/13/the-top-three-challenges-facing-msps/#comment-1861 No disrespect intended, but I disagree with Dan completely. The number one challenge facing MSPs is by far and away sales. Yes, I know, Kaseya and every other provider of products and services to MSPs can point out their example of an MSP customer of their's that is growing like a weed, but the majority are really struggling. This will eventually be a problem for anyone basing their growth on the growth of MSPs, and will lead to major consolidation in the industry. Mike Cooch www.everonit.com www.smbitpros.com No disrespect intended, but I disagree with Dan completely. The number one challenge facing MSPs is by far and away sales. Yes, I know, Kaseya and every other provider of products and services to MSPs can point out their example of an MSP customer of their’s that is growing like a weed, but the majority are really struggling. This will eventually be a problem for anyone basing their growth on the growth of MSPs, and will lead to major consolidation in the industry.

Mike Cooch
http://www.everonit.com
http://www.smbitpros.com

]]>