Comments on: Have 10 Percent of MSPs Closed Shop? http://www.mspmentor.net/2009/10/23/have-10-percent-of-msps-closed-shop/ Managed Services Blog for Top Managed Service Providers Sat, 20 Mar 2010 04:17:58 +0000 http://wordpress.org/?v=abc hourly 1 By: Brent Whitfield http://www.mspmentor.net/2009/10/23/have-10-percent-of-msps-closed-shop/comment-page-1/#comment-50525 Brent Whitfield Wed, 28 Oct 2009 01:31:47 +0000 http://www.mspmentor.net/?p=4552#comment-50525 We are an MSP service provider doing <a href="http://www.dcgla.com/it-support-los-angeles/it-consulting-los-angeles.html" rel="nofollow">IT support in Los Angeles</a> for 15 Years. Marketing during economic slow-downs has always worked for us. In fact, during the last year, we have brought on more new clients than at any other 1 year period in our history. At the same time the economic climate has caused some of our biggest clients (i.e. retail furniture and garment wholesalers) go out of business. So, the new blood has been a life saver. We are an MSP service provider doing IT support in Los Angeles for 15 Years. Marketing during economic slow-downs has always worked for us. In fact, during the last year, we have brought on more new clients than at any other 1 year period in our history. At the same time the economic climate has caused some of our biggest clients (i.e. retail furniture and garment wholesalers) go out of business. So, the new blood has been a life saver.

]]> By: Mike Byrne http://www.mspmentor.net/2009/10/23/have-10-percent-of-msps-closed-shop/comment-page-1/#comment-50502 Mike Byrne Mon, 26 Oct 2009 13:09:58 +0000 http://www.mspmentor.net/?p=4552#comment-50502 I would have to agree 100% with the responses so far to this article. From the vendor’s perspective, we see this all the time. Someone get’s lured over to the managed service model based on recurring revenues or increased utilization rates but doesn’t take the time to figure out how they’re going to make it work. It truly is a different business model and requires a solid plan all the way from the points highlighted by Phil & George to finding the right sales resources and having a compensation model that will incent them. Also, as a vendor in this industry we’re directly linked to these issues as outlined in earlier MSP Mentor articles like MSPs: Meet the Elephant in the Room & The Biggest Risk to the Managed Services Market. In order to mitigate your exposure these issues you really need to ask yourself one question, “Am I prepared?” Once you have an answer to that question and have a pretty good handle what you need in order to go forward, make the right partnerships with organizations and resources that will help you reach your managed services goals. Mike Byrne PacketTrap Networks Director of Partner Management I would have to agree 100% with the responses so far to this article. From the vendor’s perspective, we see this all the time. Someone get’s lured over to the managed service model based on recurring revenues or increased utilization rates but doesn’t take the time to figure out how they’re going to make it work. It truly is a different business model and requires a solid plan all the way from the points highlighted by Phil & George to finding the right sales resources and having a compensation model that will incent them.

Also, as a vendor in this industry we’re directly linked to these issues as outlined in earlier MSP Mentor articles like MSPs: Meet the Elephant in the Room & The Biggest Risk to the Managed Services Market. In order to mitigate your exposure these issues you really need to ask yourself one question, “Am I prepared?”

Once you have an answer to that question and have a pretty good handle what you need in order to go forward, make the right partnerships with organizations and resources that will help you reach your managed services goals.

Mike Byrne

PacketTrap Networks
Director of Partner Management

]]> By: Vlad Mazek http://www.mspmentor.net/2009/10/23/have-10-percent-of-msps-closed-shop/comment-page-1/#comment-50500 Vlad Mazek Mon, 26 Oct 2009 05:08:18 +0000 http://www.mspmentor.net/?p=4552#comment-50500 Looking at our numbers (though to be honest, we do not break down the VAR / MSP / IT Consultant / IT Solution Provider categories for our partner base) the number is far higher than 10%. That may sound like a bad thing but when you consider the ordinary failure rate of small business (which almost all MSPs are) the 10% is almost statistically insignificant. -Vlad Mazek CEO, Own Web Now Corp (ExchangeDefender, Shockey Monkey, etc) Looking at our numbers (though to be honest, we do not break down the VAR / MSP / IT Consultant / IT Solution Provider categories for our partner base) the number is far higher than 10%.

That may sound like a bad thing but when you consider the ordinary failure rate of small business (which almost all MSPs are) the 10% is almost statistically insignificant.

-Vlad Mazek
CEO, Own Web Now Corp (ExchangeDefender, Shockey Monkey, etc)

]]> By: Phil LaForge http://www.mspmentor.net/2009/10/23/have-10-percent-of-msps-closed-shop/comment-page-1/#comment-50490 Phil LaForge Sat, 24 Oct 2009 15:47:44 +0000 http://www.mspmentor.net/?p=4552#comment-50490 Great follow up post George. My bet is most failed MSPs never ask the most basic universal questions, i.e. What business am I in? Who is my ideal customer? What's is in my offering catalog? How do I price my services to achieve and sustain profitability? Do I have the engineering and support skills required to be in a 24X7 business? When a hardware partner pushes a new box out into the channel, it come with specs, collateral and pricing already on board. Because of this, VARs have little experience "productizing" their new MSP offers. Like Joe said, until the VAR-turned-MSP gets over this hump, why spend time shopping for a service desk tool or RMM solution. Great follow up post George. My bet is most failed MSPs never ask the most basic universal questions, i.e. What business am I in? Who is my ideal customer? What’s is in my offering catalog? How do I price my services to achieve and sustain profitability? Do I have the engineering and support skills required to be in a 24X7 business?

When a hardware partner pushes a new box out into the channel, it come with specs, collateral and pricing already on board. Because of this, VARs have little experience “productizing” their new MSP offers. Like Joe said, until the VAR-turned-MSP gets over this hump, why spend time shopping for a service desk tool or RMM solution.

]]> By: Stuart Crawford http://www.mspmentor.net/2009/10/23/have-10-percent-of-msps-closed-shop/comment-page-1/#comment-50488 Stuart Crawford Sat, 24 Oct 2009 14:23:06 +0000 http://www.mspmentor.net/?p=4552#comment-50488 JP...great post! Here are some additional thoughts I would add. Still today many MSP's are caught up in paralysis by analysis! With tools do I use? Flip flopping between tools and then thinking about how to make the best QBR. Here is a tip! Microsoft didn't become the leader in desktop and server software because it had the best product, it got it out there and then adjusted along the way. I also agree with my trusted colleague George. Systems and processes are critical. Why is McDonald's so successful or even Starbucks? They create a repeatable process which provides the same end user experience all the time. Also, many MSP's leave way too much money on the table, they never truly capture their fair share of the IT wallet of the client. This is where the sales and marketing team comes in. At Bulletproof, we have invested heavily in Marketing and Sales, to a point where it is a good percentage of our overall expense, however it is an investment in the future. Stop by technical and start being focused on business and do something to attract clients to you. Cheers Stuart Crawford Bulletproof InfoTech Web: http://www.bulletproofIT.ca Blog: http://stuart.calgarybloggers.ca JP…great post!

Here are some additional thoughts I would add. Still today many MSP’s are caught up in paralysis by analysis! With tools do I use? Flip flopping between tools and then thinking about how to make the best QBR. Here is a tip! Microsoft didn’t become the leader in desktop and server software because it had the best product, it got it out there and then adjusted along the way.

I also agree with my trusted colleague George. Systems and processes are critical. Why is McDonald’s so successful or even Starbucks? They create a repeatable process which provides the same end user experience all the time.

Also, many MSP’s leave way too much money on the table, they never truly capture their fair share of the IT wallet of the client. This is where the sales and marketing team comes in. At Bulletproof, we have invested heavily in Marketing and Sales, to a point where it is a good percentage of our overall expense, however it is an investment in the future.

Stop by technical and start being focused on business and do something to attract clients to you.

Cheers

Stuart Crawford
Bulletproof InfoTech
Web: http://www.bulletproofIT.ca
Blog: http://stuart.calgarybloggers.ca

]]> By: George Sierchio http://www.mspmentor.net/2009/10/23/have-10-percent-of-msps-closed-shop/comment-page-1/#comment-50479 George Sierchio Fri, 23 Oct 2009 19:31:19 +0000 http://www.mspmentor.net/?p=4552#comment-50479 Good points, Joe. I would also add in that those falling off or already fell off the cliff have not grasped the notion that regardless of the model they choose to use, they have a business and it needs to be operated in that fashion. That means both in their delivery of services/products and internally regardless of their size, niche or anything else. Putting 2 more cents in, over the long haul those that will be rising to the top of VARs and MSPs will not only have great sales and marketing efforts, but the structure, systems and processes to operate a sustainable/scalable business to take advantage of an increased client base and still deliver services as promised. George Sierchio Good points, Joe.

I would also add in that those falling off or already fell off the cliff have not grasped the notion that regardless of the model they choose to use, they have a business and it needs to be operated in that fashion. That means both in their delivery of services/products and internally regardless of their size, niche or anything else.

Putting 2 more cents in, over the long haul those that will be rising to the top of VARs and MSPs will not only have great sales and marketing efforts, but the structure, systems and processes to operate a sustainable/scalable business to take advantage of an increased client base and still deliver services as promised.

George Sierchio

]]>