Comments on: US Financial Crisis Impacts Managed Service Providers http://www.mspmentor.net/2008/10/23/us-financial-crisis-impacts-managed-service-providers/ Managed Services & Cloud Services Blog for VARs & MSPs Tue, 14 Feb 2012 23:41:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Joe Panettieri http://www.mspmentor.net/2008/10/23/us-financial-crisis-impacts-managed-service-providers/comment-page-1/#comment-28695 Joe Panettieri Fri, 24 Oct 2008 04:21:51 +0000 http://www.mspmentor.net/2008/10/23/us-financial-crisis-impacts-managed-service-providers/#comment-28695 Erick: Thanks for sharing the tips. I agree: A lot of these new perceptions started in Q3. Generally speaking, there are upbeat folks here at the N-able Partner Summit. But there's also the clear reality that the credit crisis has impacted some business momentum in recent weeks. Erick: Thanks for sharing the tips. I agree: A lot of these new perceptions started in Q3. Generally speaking, there are upbeat folks here at the N-able Partner Summit. But there’s also the clear reality that the credit crisis has impacted some business momentum in recent weeks.

]]> By: Erick Simpson http://www.mspmentor.net/2008/10/23/us-financial-crisis-impacts-managed-service-providers/comment-page-1/#comment-28692 Erick Simpson Fri, 24 Oct 2008 01:04:11 +0000 http://www.mspmentor.net/2008/10/23/us-financial-crisis-impacts-managed-service-providers/#comment-28692 Joe; Your insight it dead-on. One of the most requested keynotes I have been delivering this year is entitled "How to maximize service delivery revenue during economic downturns", in which I identify MSPs as the least challenged of all service provider groups during periods of economic uncertainty with the highest profit potential. In Q208 attendees to my sessions indicated that they were not feeling any ill effects due to the slowing economy. However attitudes have changed in Q3 - nearly all attendees I've polled during the last 3 months have indicated that their businesses have definitely been affected in some manner as their clients slow or delay capital purchases and stretch payments beyond 60 and 90 days - and I'm getting this feedback across the country. A few tips I offer to those VARs feeling the pinch include: - Reduce internal costs wherever possible - Raise rates yearly - Increase efficiencies and utilization by investing in tools and technology and adopting best practices processes and procedures for service delivery - Partner with other service providers and vendors to stabilize and increase revenues - Modify deliverables to be more attractive to clients and prospects during uncertain economic times - Move balance of deliverables to lessen commodity-based services - Shape marketing and messaging to reflect alignment with your clients’ needs - Increase marketing efforts over historical levels - Leverage vendor and distributor services and offerings such as co-operative marketing events, marketing development funds, etc. - Add financing as an option to each and every proposal - Build deep client relationships as the Trusted Advisor and outsourced CIO to reflect value and lead enterprise change in your client environments Good seeing you at CompTIA! Erick Simpson MSP University www.mspu.us Joe;

Your insight it dead-on. One of the most requested keynotes I have been delivering this year is entitled “How to maximize service delivery revenue during economic downturns”, in which I identify MSPs as the least challenged of all service provider groups during periods of economic uncertainty with the highest profit potential.

In Q208 attendees to my sessions indicated that they were not feeling any ill effects due to the slowing economy.

However attitudes have changed in Q3 – nearly all attendees I’ve polled during the last 3 months have indicated that their businesses have definitely been affected in some manner as their clients slow or delay capital purchases and stretch payments beyond 60 and 90 days – and I’m getting this feedback across the country.

A few tips I offer to those VARs feeling the pinch include:

- Reduce internal costs wherever possible
- Raise rates yearly
- Increase efficiencies and utilization by investing in tools and technology and adopting best practices processes and procedures for service delivery
- Partner with other service providers and vendors to stabilize and increase revenues
- Modify deliverables to be more attractive to clients and prospects during uncertain economic times
- Move balance of deliverables to lessen commodity-based services
- Shape marketing and messaging to reflect alignment with your clients’ needs
- Increase marketing efforts over historical levels
- Leverage vendor and distributor services and offerings such as co-operative marketing events, marketing development funds, etc.
- Add financing as an option to each and every proposal
- Build deep client relationships as the Trusted Advisor and outsourced CIO to reflect value and lead enterprise change in your client environments

Good seeing you at CompTIA!

Erick Simpson
MSP University
http://www.mspu.us

]]> By: Joe Panettieri http://www.mspmentor.net/2008/10/23/us-financial-crisis-impacts-managed-service-providers/comment-page-1/#comment-28687 Joe Panettieri Thu, 23 Oct 2008 22:40:17 +0000 http://www.mspmentor.net/2008/10/23/us-financial-crisis-impacts-managed-service-providers/#comment-28687 Al: Thanks for the note. I remember when CRM and ERP vendors told me in early 2000 that their sales pipelines were strong. They nearly guaranteed that they would see a potential slowdown before anyone else because CRM gave them "visibility" into long-term customer buying trends. But within weeks of making upbeat statements to me, PeopleSoft announced a big customer sales slowdown, and the bottom dropped out of the tech market. Fast forward to today: The MSP market remains strong. And it's far better to be an MSP than a VAR these days (generally speaking). But we're all going to take a few lumps as the financial crisis plays out. Al: Thanks for the note. I remember when CRM and ERP vendors told me in early 2000 that their sales pipelines were strong. They nearly guaranteed that they would see a potential slowdown before anyone else because CRM gave them “visibility” into long-term customer buying trends.

But within weeks of making upbeat statements to me, PeopleSoft announced a big customer sales slowdown, and the bottom dropped out of the tech market.

Fast forward to today: The MSP market remains strong. And it’s far better to be an MSP than a VAR these days (generally speaking). But we’re all going to take a few lumps as the financial crisis plays out.

]]> By: Al G http://www.mspmentor.net/2008/10/23/us-financial-crisis-impacts-managed-service-providers/comment-page-1/#comment-28672 Al G Thu, 23 Oct 2008 20:42:31 +0000 http://www.mspmentor.net/2008/10/23/us-financial-crisis-impacts-managed-service-providers/#comment-28672 Joe thank you for being a voice of reason in an industry where the media reports fantastic or terrible news but rarely describes the good and the bad in a balanced way. Joe thank you for being a voice of reason in an industry where the media reports fantastic or terrible news but rarely describes the good and the bad in a balanced way.

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