Can one size really fit all in the managed services market? Cisco Systems doesn’t seem to think so. Al Safarikas, Cisco’s senior director of managed services, predicts that the most successful managed service providers will offer mass customization to their customers.
I partially agree with Safarikas, who shared his views through Cisco’s corporate blog. Here’s what he wrote, along with my perspectives.
Safarikas points to a recent In-Stat research study that concludes “customer feedback indicates that a one-size-fits-all approach to managed services needs to change — by addressing specific vertical and horizontal market stakeholder needs and requirements.”
With that goal in mind, Cisco is conducting a “managed services benchmark study” to determine how service providers intend to accommodate more granularity into their service offerings, according to an April 1 blog entry from Safarikas.
Specialization and customization certainly are important to customers, especially in specific vertical markets (health care, education, insurance), where MSPs need to be savvy with specific government, privacy or financial regulations.
But I don’t want small MSPs or aspiring MSPs to think that they need some sort of PhD or a team of programmers just to get into this market. Small businesses continue to demand simple, one-size-fits-all services like managed storage, endpoint security and patch management.
So, it’s important to strike a balance: Specialize and customize where needed. But get started in the market by offering industry-standard solutions that will have broad appeal to your customer base.
If you start customizing your services for every customer, you’ll lose economies of scale that the MSP down the block already enjoys.
Posted In: Service Level Agreements
Tags: Cisco Systems | customization | Managed Service Provider | Managed Services | MSP | MSPmentor
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Great points, Joe. I value the dialogue around the topic of managed services. The term mass customized really means routinized at the core (people, processes, and technology) thus forming a foundation for flexibility/”customization” at the customer interface point. In a sense it can be positioned as adaptive managed services. At Cisco, our intent is to enable MSPs to deliver managed services that map to enduser needs. I look forward to future discussions.
Al: Great to have your voice on the site.
Your service provider blog (http://blogs.cisco.com/sp/) is a welcome change-of-pace from a lot of the vendor-driven blogs out there.
Please feel free to debate MSPmentor whenever you think we’re a bit off target (or completely off target…). I often engage in great debate with Cisco’s PR team, and that often triggers new perspectives for our readers.