Many VARs get certified for vendor-specific technology (Microsoft, Cisco, etc.). But a new wave of certifications and accreditations — focused on the managed service provider and software as a service (SaaS) markets — is emerging.
Certifications can help customers to find top-notch partners, and it potentially helps to weed weaker service providers out of the market.
But certifications and accreditations also introduce a new challenge: Small VARs and solutions providers that are just getting started in the managed services industry may not be able to afford certification fees. As an industry, we certainly don’t want to create a new digital divide — where deep-pocketed MSPs can afford certification but savvy startups can’t.
So, what’s the solution? Here are some thoughts, and I’d welcome yours as well.
Defining the Problem
First, why do we need certifications and accreditations?
In a recent Inc. magazine article, MSP Alliance President Charles Weaver estimates that only 5 percent of MSPs are really good at running their businesses.
I think far more MSPs are really good at their jobs. Yet, I agree with Weaver’s basic premise: There needs to be a good way for customers to find truly qualified MSPs, while circumventing the bad ones. In many ways, certifications and accreditations can address that need.
Now, the challenge: Depending on which path you pursue, certifications and accreditations for MSPs and SaaS providers range anywhere from $2,500 to more than $25,000, depending on which path you take.
In the MSP market, lots of companies are lining up for MSP Alliance accreditation. Lane Smith, from Do IT Smarter, is discussing the accreditation program at the MSP Alliance’s conference in Atlanta on March 31.
Since I’m not an MSP and I don’t have experience with the accreditation program, I can’t comment on its value. But Do IT Smarter has some good momentum going as a Master MSP, and I’m sure they’d welcome your questions about how and why they pursued accreditation with the MSP Alliance.
SaaS Certification
Certifications are also popping up in the SaaS market. For instance, Parallels, which makes virtualization software, has introduced an Application Packaging Standard (APS) Certification Service, which is maintained by Tier 1 Research. The certification service requires about 30 days to complete, and requires an annual re-certification process.
The initial certification fee is $10,000 for the Gold level for the first year and $5,000 for renewals each year after, while the Silver level is $2,500 for the first year and $1,250 for renewals, according to Parallels.
True believers in the Parallels certification include 1&1 Internet, a service provider that believes the certification will help attract independent software developers to the SaaS model, according to a prepared statement from 1&1.
Still, certifications are a bit like a high school or college degree. Just because you have a diploma hanging on the wall, that doesn’t mean you’ll be a successful managed service provider or SaaS provider.
So, are you pursuing a certification or accreditation this year for managed services or SaaS? Why or why not?
Posted In: Marketing | Service Level Agreements
Tags: Accreditation | Certification | Managed Service Provider | Managed Services | Parallels | SaaS | Software as a Service and Hardware as a Service | SWsoft
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We haven’t considered certification other than training on the specific MSP platform we’re using. We’re busy telling our customers about managed services, and I don’t think most small business customers know enough to ask about certifications in this area.
It’s like your car mechanic. You assume they are state licensed and know what they’re doing when they look under your hood.
I know some mechanics aren’t very good. And I guess some service providers aren’t very good. Buyer beware.
I completely agree with SJK, I would challenge any accredited MSP to show where they have seen sales increase or a return on investment due to certification.
We have been a Microsoft Gold Partner for 10 years and it never helped us win business. We didn’t renew this year and spent the money on Microsoft training instead and our techs really appreciated it. In our view you can’t invest to much in training….where the rubber really meets the road. Customers could care less about industry accreditation.
Charles
SJK, Charles W: Thanks for weighing in. One other thing to consider, which I didn’t mention in the original post, is co-marketing dollars that can come from being a certified partner with some companies. Very helpful for some VARs.
But there is also a clear difference between vendor certifications and industry/association certifications/accreditations. Lots of people use CompTIA’s A+ or Network+ (etc.) to get started in tech support. And other types of certifications do help you stand out from the crowd.
But to Charles W’s point, can anyone share some ROI stories with us? What has been the payoff of your certifications or accreditations? Real-world examples would be helpful for our readers.
Joe,
As a young (under 25) entrepreneur that is heavily interested in joining the industry, I completely agree with your point. It is true that the industry does need some measure to highlight it’s true performers, but for a startup the accreditation process and the certifications can be quite daunting. I think the fact that many MSPs think they need a badge of honor also masks an underlying problem, lack of marketing/sales amongst MSPs. I think a company should be able to rely upon a clear value proposition, a promise of extraordinary service and a great reputation.
Kevin: Congrats on being a “young” entrepreneur. You’re right about having a clear value proposition, etc. MSPs need to communicate their worth to customers, as you point out.
However, some customers from time to time do look for a “Good Housekeeping Seal of Approval” — something that indicates a third-party has given you a thumbs up.
But even without that third-party seal, I do think there’s plenty of room for start-ups to compete successfully in the managed services space. And as your business grows, customer references — and perhaps, your own customer satisfaction surveys? — will become that seal of approval.
I’ll be shocked if Everon ever loses a deal because we aren’t a certified MSP, but I’ll be the first to report it if we do!
Mike Cooch
http://www.smbitpros.com
http://www.everonit.com
Mike: Thanks for your thoughts. So, if customers aren’t asking you about certification, what types of questions are they asking you?
Prospects are much more focused on the services we can deliver, the expertise of the people we have on staff, and that we work with clients that have similar needs, challenges, etc. I think contract specifics are also very important when evaluating our services - too many service providers are too aggressive with their contracts.
I think that certifications have their place, but I don’t think that a general managed services certification or a certification from a platform provider is going to make any difference. Being certified in a particular product or vendor that the client really prefers or relies on may make a difference.
Mike
http://www.smbitpros.com
http://www.everonit.com
[...] What really matters to clients when evaluating an MSP? Posted By: Mike Published in Marketing, Sales Tags: contracts, it, MSP, MSPMentor, MSPs, SaaS, Sales 2Apr Welcome to SMBITPros - make sure to sign up for our RSS feed!I’ve been a part of a conversation about the importance (or lack of importance) of certifications in the MSP industry. See the posts at MSPMentor here. [...]
Like SJK stated, I’m not so convinced that today there is much need for an MSP to have that MSP certification. We’ve never once been asked for about our MSP certification, or lack of. I will however probably get this on our roadmap, because once the marketplace becomes more savvy to what we do, they’ll want a simple differentiator. THen you get into the whole question of whether it is a rubber stamp (mcse) or a business process verification). Also, once the MSP space is more familiar to the masses, an industry certification will be more useful for certain. Inc. Magazine has a couple of articles regarding MSP’s that can only help publicize what we all offer as a service. Heck, we’ve been in business as an MSP since 2000, longer than anyone I’ve come across except ConnectWise. It wasn’t until we stumbled (literally) into the MSP Alliance (in 2003 or 2004 I think) that we knew what this industry was called. That is the problem with being the tip of the spear, you have to invent your industry, which I see a lot of MSP’s have done better at (EverOn, kudos) than we have. I don’t know if we are one of Charles’ 5%ers, but we’ve been profitable longer than most MSP’s have been in business.
Side note: The certs that our customers and prospect are interested in are SAS70, ITIL (Process improvement), Microsoft and Security certifications, and any business specific application expertise we may have that is relevant to their type of business.
Todd, thanks for posting your comments I had missed this blog when it was originally published. I actually just wrote a blog post on another site, about why I think that accreditation is so important. Here are my comments:
There are many reasons this accreditation is important, but probably the most important reason is that it protects the integrity of the managed services profession. There is such fast growth in our industry and so many companies proclaiming to be a MSP. But in reality how many of these companies know exactly what it means to be a MSP? That is exactly what this exam focuses on. Setting the standards for how MSPs run their business.
I can tell you personally, we have been an MSP for nine years, and we have run up against competitors that claim to have similar services to us. There are lots of companies out there that have a website that looks like they are an MSP, they are touting that they are an MSP, but they are just not really an MSP. They advertise that they have a help desk, remote support, 24/7 monitoring, etc., but when you call into their help desk, you get the receptionist and he/she pages a technician. This is obviously not how a MSP operates.
When a customer is unhappy with their service, what do you think they will take away from the experience? I would wager to say that they might think that all MSPs operate this way and then decide to run everything in house. Everyone loves it when the competition does a poor job and the customer calls you to fix the problem. However, that won’t be the case if their opinion of our profession is that we do not operate as advertised.
So how can the accreditation program help with this? Once again I will stress by setting the standards for how MSPs run their business. Once we start growing the numbers of Accredited MSPs we will be able to grow customer awareness too. I know that everyone has been asked what your certifications are. Usually stating Microsoft or Cisco is sufficient for the customer when talking about a project, but these certifications won’t cut it when talking about Managed Services. If we can raise awareness enough to change this question to “What managed services specific certifications do you have?” then we will have achieved some standardization in our industry.
Is standardization the only reason for the program? No, but I will leave that conversation for another day
Thanks Lane, I get what you are saying, I guess my thoughts on this are conflicted. On the one hand, getting the MSP cert is on the roadmap for us, on the other, I’m not sure, short term, that the customer will grasp the nuance between a “certified” and “non certified” shop. I’ve always felt there should be an accepted standard for IT, sort of like accountants and their gaap. Perhaps this MSP cert is one of many disciplines within that idea. I guess the current weakness with regards to the value of the MSP certification is the lack of knowledge outside of our industry (our customers), although this is one way to address that. Thanks again, Todd