Comments on: Managed Services: The Value Is the Service http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/ Managed Services & Cloud Services Blog for VARs & MSPs Tue, 14 Feb 2012 17:47:34 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Andy http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/comment-page-1/#comment-53488 Andy Mon, 03 May 2010 18:09:56 +0000 http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/#comment-53488 In my dealings with customers I find they don't care what tools, software and infrastructure you use, they just need their business needs fulfilled. If they experience down time on their site or ebusiness it will cost them dearly and the value prop is around keeping the 5 9s SLAs in place with well defined clauses around penalties if the 9s are not upheld. Essentially the in-sourcing/co-sourcing/outsourcing provided through an MSP is the well defined set of people, process and technology wrapped around SLAs. If you can also provide details around your delivery methodology, including ITIL, CMMi, SAS 70 II and so on, you will also increase the values add. Again, I don't think there is any value in discussing the tools and underpinnings of what technology you use for your offering, at the end of the day all MSPs more or less use the same tools, agents, appliances and so on....."0" value in discussing differntiation and ending up diluting the value of managed services, turning the discussing into a product sale. I have seen that over and over again trying to convert product sales reps into services reps.... In my dealings with customers I find they don’t care what tools, software and infrastructure you use, they just need their business needs fulfilled. If they experience down time on their site or ebusiness it will cost them dearly and the value prop is around keeping the 5 9s SLAs in place with well defined clauses around penalties if the 9s are not upheld. Essentially the in-sourcing/co-sourcing/outsourcing provided through an MSP is the well defined set of people, process and technology wrapped around SLAs. If you can also provide details around your delivery methodology, including ITIL, CMMi, SAS 70 II and so on, you will also increase the values add. Again, I don’t think there is any value in discussing the tools and underpinnings of what technology you use for your offering, at the end of the day all MSPs more or less use the same tools, agents, appliances and so on…..”0″ value in discussing differntiation and ending up diluting the value of managed services, turning the discussing into a product sale. I have seen that over and over again trying to convert product sales reps into services reps….

]]> By: The Path to SMB customers – a Treasure Hunt http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/comment-page-1/#comment-53108 The Path to SMB customers – a Treasure Hunt Tue, 06 Apr 2010 10:02:46 +0000 http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/#comment-53108 [...] Vice President Services North America at Ingram Micro Inc., in a guest blog post titled “Managed Services: The Value Is the Service” at the MSPmentor. • The Pain Points for SMBs is how to sign up more new customers thus increasing [...] [...] Vice President Services North America at Ingram Micro Inc., in a guest blog post titled “Managed Services: The Value Is the Service” at the MSPmentor. • The Pain Points for SMBs is how to sign up more new customers thus increasing [...]

]]> By: Is Google Dealing from the Bottom of the Deck When It Comes to the Channel? « http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/comment-page-1/#comment-48335 Is Google Dealing from the Bottom of the Deck When It Comes to the Channel? « Wed, 10 Jun 2009 17:18:41 +0000 http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/#comment-48335 [...] Google and others). And it’s smart. Any mature IT Service Provider knows full well that the bread and butter are IT management, migrations, projects and ongoing fixed fee SLA [...] [...] Google and others). And it’s smart. Any mature IT Service Provider knows full well that the bread and butter are IT management, migrations, projects and ongoing fixed fee SLA [...]

]]> By: Katherine http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/comment-page-1/#comment-44177 Katherine Mon, 23 Feb 2009 16:15:38 +0000 http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/#comment-44177 Hi Justin, Agree with all stated points. Customers just want things to work..efficiently. Although they don't necessarily want (or need) to know which brand of tools are in your belt, MSPs should play up the use of vendor agnostic tools and solutions. We know UC is all about integration of various vendor solutions. Using tools that are vendor agnostic can be a great differentiator. Katherine Hi Justin,

Agree with all stated points. Customers just want things to work..efficiently. Although they don’t necessarily want (or need) to know which brand of tools are in your belt, MSPs should play up the use of vendor agnostic tools and solutions. We know UC is all about integration of various vendor solutions. Using tools that are vendor agnostic can be a great differentiator.

Katherine

]]> By: Justin Crotty http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/comment-page-1/#comment-43905 Justin Crotty Thu, 19 Feb 2009 20:14:05 +0000 http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/#comment-43905 Barbara - Great point - you've just reiterated my message. Notice how your thoughts really speak to defining value for specific customers vs. focusing on tools and technologies. Nice to see! Justin Barbara -

Great point – you’ve just reiterated my message. Notice how your thoughts really speak to defining value for specific customers vs. focusing on tools and technologies. Nice to see!

Justin

]]> By: Joe Panettieri http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/comment-page-1/#comment-43842 Joe Panettieri Wed, 18 Feb 2009 21:51:18 +0000 http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/#comment-43842 Wayne: 1. You've gone viral 2. You've provided a clear launching place for your viral videos 3. You've got a catchy brand with "Pain Free IT" Nice job. -jp Wayne:

1. You’ve gone viral
2. You’ve provided a clear launching place for your viral videos
3. You’ve got a catchy brand with “Pain Free IT”

Nice job.
-jp

]]> By: Wayne Altman http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/comment-page-1/#comment-43840 Wayne Altman Wed, 18 Feb 2009 21:31:33 +0000 http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/#comment-43840 We have addressed these issues in some very informative videos for our customers. http://www.youtube.com/user/painfreeit Many of our customers have expressed the same questions you have posed. Great article.. We have addressed these issues in some very informative videos for our customers. http://www.youtube.com/user/painfreeit

Many of our customers have expressed the same questions you have posed. Great article..

]]> By: Joe Panettieri http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/comment-page-1/#comment-43835 Joe Panettieri Wed, 18 Feb 2009 18:42:59 +0000 http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/#comment-43835 Barbara: Great thoughts. You've essentially said "find the customers' pain points" and you're right on target. An example: As we scaled our own business (Nine Lives Media Inc.) we experienced a couple of site slowdowns/outtages. When we spoke with our service provider we described our business goals and anticipated growth rates. The subject of price or service fees never came up till the end of the conversation. We were in pain and we needed a solution to address the pain. Price was an afterthought while we were experiencing the pain. We ultimately received a great managed/hosted service plan that delivered great value/bang for the buck. But the service provider didn't lead the conversation with price. We spoke about our pain and business growth goals first. Barbara: Great thoughts. You’ve essentially said “find the customers’ pain points” and you’re right on target.

An example: As we scaled our own business (Nine Lives Media Inc.) we experienced a couple of site slowdowns/outtages. When we spoke with our service provider we described our business goals and anticipated growth rates. The subject of price or service fees never came up till the end of the conversation. We were in pain and we needed a solution to address the pain. Price was an afterthought while we were experiencing the pain.

We ultimately received a great managed/hosted service plan that delivered great value/bang for the buck. But the service provider didn’t lead the conversation with price. We spoke about our pain and business growth goals first.

]]> By: Barbara Bix http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/comment-page-1/#comment-43831 Barbara Bix Wed, 18 Feb 2009 18:18:11 +0000 http://www.mspmentor.net/2009/02/18/managed-services-the-value-is-the-service/#comment-43831 Hi Justin, It's true that customers buy on what creates value for them--not what you find most valuable about your goods and services. Nevertheless, just like beauty, value is in the eye of the beholder. Some car buyers, perhaps those that purchase expensive race cars, probably do know what kind of transmissions are in their cars. As you note, whether it's a car or IT services, the rest of us buy for different reasons--but even our reasons are not homogenous. While many IT buyers may want a third party to handle it, you may need further differentiation. That differentiation may be cost, responsiveness, your unique technology, or confidence that you won't go out of business tomorrow. To develop a compelling value proposition, it helps to narrow your focus to those who most need your services, find out what matters most to them, and then create a very specific value proposition that speaks to their very specific needs. If they want it handled, maybe you can differentiate your company by finding out more about what handled means. For example, do they want you to check with them first to approve large expenditures--or charge you a flat all-inclusive fee so that they can just go ahead. It's really understanding the value that helps successful brands succeed. Hi Justin,

It’s true that customers buy on what creates value for them–not what you find most valuable about your goods and services. Nevertheless, just like beauty, value is in the eye of the beholder. Some car buyers, perhaps those that purchase expensive race cars, probably do know what kind of transmissions are in their cars. As you note, whether it’s a car or IT services, the rest of us buy for different reasons–but even our reasons are not homogenous. While many IT buyers may want a third party to handle it, you may need further differentiation. That differentiation may be cost, responsiveness, your unique technology, or confidence that you won’t go out of business tomorrow. To develop a compelling value proposition, it helps to narrow your focus to those who most need your services, find out what matters most to them, and then create a very specific value proposition that speaks to their very specific needs. If they want it handled, maybe you can differentiate your company by finding out more about what handled means. For example, do they want you to check with them first to approve large expenditures–or charge you a flat all-inclusive fee so that they can just go ahead. It’s really understanding the value that helps successful brands succeed.

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