Comments on: Have You Got the Right Managed Services Attitude?

By: Paul Barnett

Paul Barnett — Mon, 19 Jan 2009 20:38:34 +0000

Obviously, the “comparing bills” example I gave would be used in instances where it makes sense. One situation that comes to mind would be when a customer has had a server blow up or another disaster in the past. You focus the insurance savings they would have had if they were on a managed services plan. This is a huge selling point and should be emphasized when possible.

Paul Barnett
Marketing Director
http://www.VirtualAdministrator.com

By: John Kilgore

John Kilgore — Mon, 19 Jan 2009 14:38:34 +0000

I agree with a lot of the points mentioned here, but must agree with Richard on his counter. Managed Services is an insurance plan, and thus may be more expensive up front (vs. Break Fix bills) and that service comes with a premium. I like to give the client the “you can pay me now or pay me later” mantra that comes with recovering from an IT disaster, but instead assure them that the level of service they will be getting is far and above the traditional Break-Fix business model. Why would you pay me the same amount of money to support you IT infrastructure and provide you less service? That’s what a break-fix model will provide you, Mr. Customer.

Showing the client their previous bills in my experience (unless they have already had that disaster) almost always doesn’t net a cost savings.

Maybe if you went the other direction and offered them a cost savings analysis on their soft costs incurred during downtime including what it would take to hire a single IT guy to support their infrastructure would be a better approach when selling on cost value.

By: Joe Panettieri

Joe Panettieri — Mon, 19 Jan 2009 14:31:44 +0000

Richard: Have you made the transition to managed services? What type of company do you represent?

By: Richard

Richard — Sat, 17 Jan 2009 02:34:31 +0000

All good advice but I disagree with the assertion that MSPs should mention customers’ previous break-fix bills. Overall managed services may have a higher annual cost to the customer than traditional break-fix surprise bills but the added reliability and predictability is well worth the investment for SMBs.