Generally speaking, I avoid the temptation to write big “prediction” pieces as the New Year approaches. My crystal ball is as foggy as the next guy’s. And sometimes a list of predictions is nothing more than a lame attempt to gain more reader eyeballs. Still, I do have some strong opinions about where MSPs and technology companies should head in 2010. Here are some quick thoughts.
1. Back to basics: This one is for MSP software providers. The cloud hype cycle is probably nearing its peak. The cloud is real but let’s keep it in perspective. Amazon and Rackspace both had outages in recent days/weeks. Which MSP software providers have the best cloud strategy? It’s far too soon to say since many long-promised cloud initiatives didn’t materialize in 2009 and are now promised for 2010. The guilty parties know who they are.
Instead of hyping massive clouds or the latest widget, let’s get back to basics.
- How simple is it for a VAR or MSP to embrace a managed services software solution?
- How quickly can a VAR or MSP get up to speed on the software?
- Is the pricing model fair and simple?
- Are end-customers happy?
Answer those four questions and you’ll have my attention throughout 2010.
2. Understand Your Customers: Loyal readers know that MSPmentor suffered some pain recently. Our site traffic essentially doubled in 2009. In some rare instances that meant slow-loading or non-loading pages. Embarrassing stuff. Our original service provider was incredibly responsive but didn’t really understand our business or our platform.
When we went poking around for help, we found a new service provider that seems to understand every piece of software we’re running. But it this is more than a tech conversation. Our point-contact at this new company spent an hour on the phone with our management team, reviewing our business model, scaling plans and future directions. Price was the last thing on our mind. And frankly, price didn’t come up until the very end of the conversation. We were in pain and a new service provider took the time to listen to our issues. Smart. He potentially earned our business. We’ll let you know how it goes.
3. Run a Simple SaaS Test: I’m tired of the SaaS and cloud debate. End the chatter and start testing a third-party SaaS service. Online backup and recovery and/or Security as a Service come to mind. If you’re nervous about putting a customer on a SaaS solution then put your own business on it first for a few months. Whether you trust/distrust a SaaS provider (Microsoft BPOS, Google Apps, etc.) isn’t the point. Ultimately you need to understand SaaS.
Think of it this way: You formed your opinions about Ethernet, WiFi, Exchange, notebooks, servers, etc., through real-world experience. Now, form your SaaS and cloud opinions through real-world experiences. Test something. Then share those opinions with your customers.
4. Run a Single Dashboard: PSA (professional services automation), RMM (remote monitoring and management) and other software providers increasingly promote single dashboards for monitoring all customer systems and all of your applications. Have you tested the dashboards? Why not?
5. Find New Friends: Peer groups and tech industry conferences are highly valuable. But we all need to spend more time hanging out at the local chamber of commerce and meeting professionals from other backgrounds (marketing pros, sales experts, branding experts, communication pros).
6. Create Some Jobs: Go ahead. Open your wallet a little wider. Even if you can’t afford to hire full-time employees, there is awesome talent on the street (freelancers, consultants, interns) ready to help you with specific project work. With U.S. unemployment around 10 percent, employers have the power to pick and choose the best talent available. Don’t waste this opportunity. Grab the talent you need.
A few thoughts: How many hours are you wasting…
- creating your own Powerpoint templates from scratch?
- fooling around with web site development templates?
- trying to master Search Engine Optimization?
- writing marketing documents?
- writing sales literature?
- trying to organize 1,000 business cards that never made it into your PSA system?
Focus on the big picture and delegate tactical tasks to a contractor, intern or new employee.
7. Book Your Vacations Now: Seriously. Circle at least two weeks on your 2010 calendar right now and book your vacations. Tell your staff and your customers now that you won’t be available on those dates. Disappear for a bit.
Make people miss you. Forget about resetting the economy. Reset your own life priorities.
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Joe
Great thoughts here. Predictions really don’t mean much – but some sage advice like you have provided is like gold. I couldn’t agree more with your thoughts.
We all need to really get back to the basics of serving customers and remembering that in the SMB space, profitability happens based on relationships and not transactions. It is the value of a customer over time that will keep the banker away from our doorstep. The cloud is coming, but we need to stay focused on the bread and butter of MSP and serving clients well for the short term.
We also need to realize the power of relationships in other areas too. Peers can be a fantastic way to gain ideas that can really help us tweak our businesses. Relationships with vendors can avail us to their programs and marketing and field resources – things we typically don’t even know about if we are not connected. And building relationships with distributors opens a door to many resources that again many partners completely miss.
Your closing comments strike a cord with me. While we never fail to focus enough on business, we can fail miserably to focus enough on life. We need to reset our priorities in 2010 and be sure we don’t miss another year of relationships with those in our patch – our spouse, kids, parents, families – and so many others that we claim to be friends with. While being a FBF is good, it will never replace sitting down over a cup or coffee or sharing a good movie. We need to get back to the basics of life – and talk face to face with those we love. Vacations are a great way to make that happen.
Thanks for you thoughts. Merry Christmas and a very Happy New Year!
Arlin
Joe,
Bang on! It seems I must have written your post…or at least I had the same thoughts (Rule# 7). I don’t think you can stress the “Understand your customer” point enough. That level of engagement, especially face-to-face, will lead to long-term and mutually beneficial relationships — and most importantly to “TRUST”. In this age of technology, let’s not forget to take the time to engage directly, use the telephone and write personal notes.
To Arlin’s point, I have been fortunate enough to have the time in the past few months to talk with, and focus on those people who are important to me, and the results have been fantastic! Thanks for the reminder Arlin!
I believe 2010 will be a growth year for the channel and in some areas it will be downright explosive. As I work with Amy to take over the helm at MSPSN, our focus will be on working with our partners to gain more insight into their business objectives and ensure all parties are well served.
Please keep up the good work in 2010 and keep us engaged with your thoughtful dialogue. Happy Christmas and all the best in 2010!
Gerard
Arlin@1: You point about strong vendor relations is well-taken. Sure, vendors want to sell you more. But it’s also pretty darn clear that the best vendors work really hard to educate the channel. Including MSPs. And my closing comments (point 7) was really just a tip of my hat to HTG’s life-work balance commitment.
For those who missed the life-work conversation check out this chatter.
Gerard@2: Keep us posted as you size up the MSPSN strategy for Q1.
-jp
JP, thanks for sharing this…as much as I love the channel, peer groups and everything I learn from my colleagues in the IT space my clients don’t care one bit. They appreciate that I learn from my peers through groups like HTG but you know something they would be more appreciative if my firm new how to help them with Accumap (a solution for finding oil and gas). This is why “finding new friends” is critical. I once got way to focused on “working the IT channel” and thankfully I lost this focus during the boom years, but I will tell you this…those friends and colleagues when to other IT providers and those who helped them when I was out jetting around to SMB Nation, WPC and everywhere else. Don’t do what I did….work your Chambers, work your networking groups, start your own breakfast clubs and refocus on what matters the most – the areas where your business comes from.
I don’t agree with the growth in the Channel observation, the growth will come from those IT providers who shift there focus to understanding their business, networking where it matters and going the extra mile to make a better name for themselves in their own business communities.
Am I beating a dead horse here? Perhaps!
It is great to have a mountain of business cards where the postal code starts with a “T” (Alberta). I agree with Gerard on using the phone, sending thank you notes…turn off the computer and get out from behind the Blackberry and laptop…people do business with people, not computers.
Stuart Crawford
Calgary, AB
http://www.bulletproofIT.ca
Stuart: As my grandmother used to say “everything in moderation.” Peer groups and trade shows offer great benefits. But not if they pull you away from local business relationships. I need to take my own advice and start networking more in my back yard.
-jp
Joe,
I love this post. I agree with and have to quote Arlin, “While we never fail to focus enough on business, we can fail miserably to focus enough on life”. One of the questions on the partner application that I give to coaching prospects is, “when was the last time you took a vacation and did you bring your laptop with you?” It is very important to take time for yourself or your family. Starting a business is easy, but running a business successfully is hard work.
You mentioned peer groups and trade shows. While this is a great place for me to plug my event in March, I am not going there. I wanted to say to the people who are reading this, when you are involved with a peer group or at a trade show, this is your time to learn from others who have been there done that. Ask questions of your vendors. Talk to new vendors. The vendors out there are eager to help you in your business because ultimately, it will help theirs. There are a lot of successful MSPs out there who are willing to help the new guy.
I am with Gerard on this one; I also believe that we will see growth in the channel, but only the strong will survive and grow. I have been speaking to an MSP who has been successful in the past, but going into 2010, they don’t know what is going to happen in their business. They are thinking about closing shop and getting a job. I believe that 2010 will change everything in this channel and a lot in the business that we are in as MSPs.
Those of you, who are reading this post, hang in there. There will be a lot of opportunities for you in 2010. The points that Joe brings up here like getting back to basics, understanding your customer, create jobs are all good points that you really need to take to heart in the coming year.
JP, thanks for posting this and I wish you, your family and everyone in MSP Mentorland a happy, healthy and safe holiday.
All the best in success,
Stuart “Coach Stu” Selbst