The central question: Can you wrap VoIP, hardware as a service, security, email, backup, applications and print management into a single managed solution — while potentially abandoning per-device pricing? Three top MSPs will describe how they have significantly increased their recurring revenue.

Key Points We’ll Cover:

• Howard Cunningham, president of Macro Systems LLC: Covering sales tactics for managed print services, hosted virtual servers and other managed SMB opportunities.
• Brett Jaffe, president of IT4 Inc.: Describing why he thinks per-device pricing is a no-win game. Jaffe will discuss how he profits from business relationships that blend on-premise and cloud approaches for SMB customers.
• Alex Rogers, president of ARRC Technology: He’ll offer guidance for adding VoIP, video surveillance and disaster recovery to an MSP practice.
• Arnie Bellini, CEO, ConnectWise (the event’s sponsor): Providing a complete blue-print for the modern SMB office, and the services you can sell them.

I hope you’ll join us for this June 23 Webcast (that’s this Wednesday). We hope to cover dozens of attendee questions during the webcast.

Read More About This Topic

• MSPmentor Live Webcast: Join Us Today
• Managed Services: Time to Abandon Per-Device Prices?
• Managed Services Sales: Stop Talking, Start Listening
• Managed Services Revenue: The Good (And the Bad)
• Join Us Today: Webcast – 5 Managed Services Sales Tips From 2 MSP Pros

As you may recall, Ulistic is a social media consulting firm based in Calgary. The Ulistic team includes Stuart Crawford, a former MSP who has a strong following across blogs, Twitter and other social media pipelines. Meanwhile, JoomConnect of Oneonta, N.Y., connects the dots between ConnectWise (the professional services automation platform) and an MSP’s website. Together, Ulistic and JoomConnect say they will help MSPs to build end-to-end online marketing solutions.

No doubt, more and more consulting firms are trying to assist MSPs with search engine optimization (SEO), social media strategies and online marketing. From independent coaches to formal platforms like Kutenda, MSPs can choose from a range of SEO and marketing platforms.

Still, the Ulistic-JoomConnect connection is interesting, particularly because JoomConnect has a growing following within the ConnectWise partner base, which now exceeds 3,000 VARs and MSPs. Plus, ConnectWise itself builds marketing program management software into its PSA platform.

Sign up for MSPmentor’s weekly Enewsletter, Webcasts and Resource Center. And follow us via RSS; Facebook; Identi.ca; and Twitter. Plus, check out more MSP voices at www.MSPtweet.com.

Read More About This Topic

• Seven Managed Services Blogs MSPmentor Didn’t Write: June 4
• MSPintegrations Plugs Manage Services Software Into Autotask
• Autotask Community Live: Five Questions Worth Asking
• MSPs Create Managed Services Middleware Market
• Seven Managed Services Blog Entries I Didn’t Have Time to Write: Sept. 25

Rewind to March 2009. At the time, Dell disclosed to MSPmentor that they company was testing managed print services with a handful of MSPs. As part of the effort, Dell vowed to support third-party printers — everyone from HP to Xerox devices.

Fast forward to the present and Dell seems ready to make some official moves. The latest speculation surfaced on PCWorld, which reported:

[Dell] is laying down the framework to enter the market by releasing enterprise printer hardware around which it could provide services, said Donald Heath, senior product manager in Dell’s printing and imaging division. The company’s next step would be to unify printing hardware and provide managed services to reduce the cost per page printed, Heath said.

Dell’s interest in the managed services market is well-documented. The company acquired Silverback Technologies and Everdream in 2007 as part of a push to remotely manage customer systems. Dell’s more recent buyout of Perot Systems has helped the company to accelerate its enterprise managed services efforts.

Next up, PCWorld reports:

“Dell in the coming months will release a software package to unify printer infrastructures in enterprises and will also incorporate OpenManage Printer Manager software into the Dell Management Console, which brings device and task management in server environments under a single application.”

There’s also word that Java capabilities are being embedded in the printers, so custom software can be implemented.

No doubt, plenty of vendors have jumped on the managed print services bandwagon — though there seems to be plenty of room for growth. Less than 30 percent of MSPmentor 100 survey participants offer managed print services to their end customers, according to our 2010 report. To help grow the market, Photizo Group has launched a series of managed print services conferences.

Direct or Indirect?

Meanwhile, Dell’s managed print strategy faces a few questions. For starters, most of the PCWorld article focused on direct-oriented sales, rather than MSP-led engagements.

Dell in recent months has taken steps to reinforce its partner messaging to MSPs, but rivals like Nimsoft (now owned by CA Inc.) claim more and more MSPs are abandoning Dell in favor of Nimsoft’s software.

We’ve got an email into Dell to see if they have any additional managed print details to share with MSPs.

Additional reporting by Joe Panettieri. Sign up for MSPmentor’s weekly Enewsletter, Webcasts and Resource Center. And follow us via RSS; Facebook; Identi.ca; and Twitter. Plus, check out more MSP voices at www.MSPtweet.com.

Read More About This Topic

• Spiceworks “Reach”-es for the Cloud
• Terremark Cites Federal Cloud Growth
• Do IT Smarter VP Says “Partner or Perish”
• MSP Software: Dell SilverBack Out, Nimsoft In at American Integration
• Artisan Infrastructure: Wholesale Cloud Infrastructure for MSPs

During a recent ConnectWise user group gathering in Rhode Island, I noticed Shoer had wrapped up his laptop with his own company brand. Shoer turns to www.schtickers,com for laptop skins and other simple items that help keep his brand in front of customers’ eyes.

Of course, Shoer isn’t the first guy to put his corporate brand on third-party hardware. And he certainly won’t be the last.

I realize MSPs and VARs have long leveraged car wraps and auto wraps to promote their brands. But if you’re getting into Hardware as a Service (HaaS), I wonder: Will you start wrapping the hardware in your own brand?

Read More About This Topic

• Say Hello to Managed Services Videos (Of You)
• CharTec Launches Enterprise HaaS BDR Appliance for MSPs
• Outsource IT in the Mid-Market: The Ultimate Managed Service
• MSPs: Promote YOUR Brand Whenever Possible
• Office 2010 Launches, But Is SharePoint 2010 The Bigger Story?

According to Dinesh.com:

The Nike “Swoosh” [was] a design created in 1971 by Carolyn Davidson, a graphic design student at Portland State University. She met Phil Knight while he was teaching accounting classes and she started doing some freelance work for his company, Blue Ribbon Sports (BRS). BRS needed a new brand for a new line of athletic footwear it was preparing to introduce in 1972. Knight approached Davidson for design ideas, and she agreed to provide them, charging a rate of $2 per hour.

In June 1971, Davidson presented a number of design options to Knight and other BRS executives, and they ultimately selected the mark now known globally as the Swoosh. Davidson submitted a bill for $35 for her work. (In 1983, Knight gave Davidson a gold Swoosh ring and an envelope filled with Nike stock to express his gratitude.)

Go Back to School

No doubt, there are local colleges and universities in your back yard. Check in with them. See if they have internship programs or class projects that assist small businesses with branding, PR and advertising. If you’re in the New York area, you might want to check in with NYIT’s Carleton Group — a student-run advertising and public relations agency. (I used to work at NYIT.)

You can find more info about multiple student-run advertising agencies on Wikipedia.

Is this a one-size-fits-all solution to your branding and marketing needs? Certainly not. But sometimes I wonder why we don’t spent more time tapping cost-effective, next-generation talent.

Read More About This Topic

• MSPs: Promote YOUR Brand Whenever Possible
• MSP Branding 101: Laptop Wraps
• Your Tagline Could Be Worth Millions
• Branding Your Managed Services Business On the Web
• How to Brand Your Managed Services Business, Part II

First, the upbeat perspectives.

• In a prepared statement, N-able says it closed 2009 out “with a bang” and is preparing for “explosive growth” in 2010.
• Meanwhile, Nimsoft CEO Gary Read says he has “this belief that 2010 is going to be a really, really good year.”
• As a whole, the SaaS industry (a close cousin to the managed services industry) saw strong performance in 2009. Our own SaaS 20 Stock Index rose more than 65 percent in 2009.
• Back on Main Street U.S.A., most major stock indexes rose sharply during the first day of trading in 2010. As TheStreet.com pointed out, “Stocks started off the new year broadly higher Monday as the major U.S. stock averages touched 52-week highs behind a spate of deals, soaring commodities and strong manufacturing data.”

Sounds great. Now, the reality check:

• In the North American managed services market first mover advantage is over. The industry is getting pretty flooded with MSPs and VARs that offer remote monitoring.
• Even Best Buy, the big retailer, now pitches Geek Squad Virtual Agents — a consumer term to describe proactive remote managed services.
• Oh, and the challenging economy continues to haunt many people. Bankruptcy filings in the U.S. climbed 22 percent in December 2009 vs. December 2008.

How Good MSPs Become Great MSPs

Still, there are numerous market bright spots. Google has pointed out that the next-generation of managed services will involve application-level services (I tend to agree). And just about everyone is telling MSPs to focus on better cash flow management (Nimsoft’s Phil LaForge offers some timely EBITDA tips here.)

In some ways it feels like Groundhog Day: Today’s MSPs face many of the same challenges as yesterday’s resellers — marketing, branding, a unique selling proposition, sales strategies, etc. It’s as if we should all exit the tech industry for a few months and take a few MBA courses in business management. If only we had the time.

Back to Basics (Again)

Generally speaking I’m upbeat about 2010. Good MSPs will become great MSPs — extending their lead over resellers and aspiring MSPs that spend too much time on technology and too little time on business strategy.

I wonder: Have you…

• Sat down with your business accountant to review 2010 expectations and cash strategies?
• Developed a marketing strategy that allows you to track performance?
• Drawn up some PR ideas to help promote your company each and every month in 2010?
• Identified at least two or three new IT opportunities your company needs to master this year?
• Fired your worst customers — and your worst vendors?
• Mingled with entrepreneurs outside of the high-tech market?

That last bullet point is an important one. Go visit a local residential or commercial real estate broker. Ask them what marketing and sales tactics they used to survive 2009. Generally speaking, anybody who survived last year’s real estate implosion has to be a pro.

There’s a lot of brainpower within the managed services industry. But sometimes, the best business advice can come from someone who knows absolutely nothing about your vertical market.

I think it’s going to be a great year. But like every year before it, 2010 will have its share of winners and losers.

Read More About This Topic

• Weekly Poll: December Managed Services Revenue
• Software as a Service Stocks: Painful 2008
• Kenexa Drags Down Software as a Service Stocks
• Why Are SaaS Stocks Climbing Higher?
• SaaS 20 Stock Index Rises 6.98% for Week Ended August 8

10. N-able Launches Free Endpoint Security

9. 14 Business and Financial Tips for MSPs

8. Hosted Windows Desktops: Your Next Move?

7. ConnectWise-CharTec: Someting’s Cooking

6. Autotask vs. ConnectWise: Who’s Got Cloud?

5. ConnectWise Cloud: Dark Until Oct. 28?

4. 10 Ways to Generate Recurring Revenue

3. What Should I Do With My Life? Six Steps to an Answer

2. MSP Software Provider PacketTrap Acquired

1. Buyout: MSP Services Network Acquired

Mergers, acquisitions, competition — those topics certainly attracted plenty of eyeballs in Q4, 2009. But readers also remain deeply interested in sales, marketing and branding strategies for MSPs. We’ll bolster our efforts to cover those topics in 2010.

Read More About This Topic

• Another Managed Service Provider Acquired
• Buyout: MSP Services Network Acquired
• PSA Software: Standard Operating Procedure?
• Professor of Managed Services?
• MSPSN Launches CloudRamp Data Protection Services

First, Dell’s official statement about ProManage-Managed Services. The new nationwide (US) service is:

“Built from the ground up for small and medium businesses, the web-based service proactively monitors and manages IT networks, prevents system issues before they occur, and eliminates costly downtime. The expansion to more than 5,500 U.S. towns and cities follows two successful pilots in Dallas and New York City, where Dell helped one customer increase staff productivity by as much as 60 percent

Most of the official press release speaks directly to small and midsize business owners. But Dell points out that VARs and MSPs can participate in the program:

“Starting as low as $9 per month with no upfront investment or long-term contract required, ProManage–Managed Services are available direct from Dell or one of its PartnerDirect Registered or Certified Partners enrolled in the new ProManage Sales Agent program.”

What Dell Is Doing Wrong, And Right

Let’s be clear here: Dell is selling managed services directly to small and midsize customers, but MSPs can participate in the process or continue to offer Dell Silverback on their own to customers. But what does all that really mean?

First, Dell’s mistakes:

• Dell’s press release and follow-up Webcast include perspectives from Dell executives, analysts, small business owners and IT managers working in small business. If Dell had included one of its MSP partners — just one — in the official press release or in the Webcast, the MSP could have articulated how it cooperates with Dell in some areas and potentially competes with Dell in other areas. Coopetition is a fact of life. Articulate it.
• Dell also should have mentioned that it remains loyal to established MSP partners (the Silverback crowd), most of whom surely don’t plan to become ProManage sales agents.
• Yes, VARs and MSPs can become “agents” for Dell ProManage-Managed Services. The problem: Many VARs hate the “agent” terminology. But stick with me and I’ll explain why Dell’s agent model might be different.
• Initially, VARs and MSPs cannot re-brand Dell ProManage-Managed Services as their own. Again, stick with me and I’ll explain how this may change.
• Much of Dell’s ProManage partner messaging is limited to Dell’s own channel blog. The Dell blog is a great resource for channel partners. But those messages should have been stronger in the mainstream PR announcement.

Let’s be honest: MSPs competing with vendors is not a Dell-specific issue. My strong belief, and you can quote me:

“All MSPs will wind up competing with major hardware and software providers as all big vendors move into the software as a service (SaaS) market. For the sake of shareholders, Dell has no choice but to offer managed services direct and indirect. The same holds true with Microsoft in the SaaS market. But Dell has to be extra-careful when communicating its managed services and SaaS strategy, because some VARs remain wary of the company’s old direct sales heritage.”

Perception is reality. And some MSPs are going to perceive Dell ProManage-Managed Services as Dell’s massive direct-sales MSP initiative. But read on.

What Dell Did Right

Do MSPs actually fit into this strategy? Yes.

MSPs can still offer Dell’s managed services platforms (i.e., Silverback Technologies) on their own to customers.

But here’s where things really get interesting: Many resellers and VARs have struggled and failed in the MSP market. Others don’t have the time or resources to build out a full-blown NOC. In those scenarios, Dell plans to position Dell ProManage-Managed Services as an MSP alternative to Zenith Infotech’s services. Will Dell succeed? I don’t know. Zenith seems to have a pretty loyal following. But mark my words: Dell will reach out to resellers and VARs that are seeking an alternative to Zenith Infotech’s offerings.

Also, Dell’s agent model for ProManage-Managed Services involves more than Dell sending a recurring monthly check to MSPs. I hate the “agent” term as much as the next guy. MSPs want to strengthen their own brands; they aren’t out to build Dell’s brand.

But there is some value to Dell’s agent approach. According to Peter Klanian, senior manager for channel sales at Dell:

• MSPs that re-sell ProManage-Managed Services will be involved in customer status report meetings between Dell, the MSP and the end-customer. And both the customer and the partner will receive monthly reports for all parties to review.
• Partners can register their pending ProManage-Managed Services engagements with Dell, in order to mitigate the risk of Dell’s direct sales force targeting that customer.
• Partners receive 15 percent recurring revenue on ProManage-Managed Services.
• Over time, it sounds like Dell will allow MSPs to re-brand ProManage-Managed Services as their own, but that capability is not currently offered.

Klanian’s ultimate perspective:

• VARs that offer ProManage-Managed Services are looking for a lower-risk, lower-reward business model because Dell is responsible for the Service Level Agreements to end-customers.
• VARs that continue to offer Dell Silverback managed services on their own are seeking a higher-risk, higher-reward business model because the MSP is responsible for SLAs to end-customers, and can often charge premiums for additional add-on services.

MSPs Still In Control?

Now imagine the following scenario: A small reseller signs up a customer for ProManage-Managed Services today. But over the next few years, the reseller evolves into a full-blown managed service provider with its own network operation center (NOC) tied to Dell’s Silverback platform. In that scenario, Klanian says, the Dell partner can migrate the customer from ProManage-Managed Services into the MSP’s own NOC.

Dell will need to drive home that point aggressively in the days ahead, as some skeptics will surely consider ProManage-Managed Services a complete direct sales play. Plus, Dell’s Silverback MSPs will need to articulate why their services are more valuable — and therefore cost more — than Dell’s own starting price of $9 per month.

In my mind, Dell’s primary press release did a poor job describing how MSPs can potentially participate in the process. But Klanian is working overtime to clarify the situation.

MSPmentor is updated multiple times daily. Don’t miss a single post. Subscribe to our Enewsletter, RSS, Webcast and Twitter feeds.

Read More About This Topic

• Update: Dell’s Managed Services Brand
• Seven Managed Services Blogs MSPmentor Didn’t Write: July 9
• Dell Managed Services: One Step Forward, One Step Back
• Join the Conversation June 10
• How to Fail as an MSP, Part III (Common Mistakes to Avoid)

Sure, MSP platform providers plan to ensure their products run on Windows Server 2008. It would be foolish to ignore an operating system platform that will likely grab 30 percent or more of the server market over the next few years.

But to its collective credit, the managed services industry focuses more on describing the business value of an IT service, rather than operating system bandwagons.

Still, there are a few exceptions. Several Web and managed hosting providers — including GoDaddy, Hostway, iNetu and Verizon Business –jumped on the media bandwagon and strongly voiced their Windows Server 2008 support.

Yet most people in the managed services industry, it seems, are busy focusing on business development and building their own brands — rather than reinforcing Microsoft’s server brand.

Read More About This Topic

• Related posts are coming soon

1. Develop Your Look and Feel: Check out masterIT’s logo. Clean, compelling and engaging. And the company’s well-organized Web site instantly communicates that “masterIT is your IT department if you don’t have one, and more horsepower if you do.” Short and sweet and on message. The company was Number 6 on our MSPmentor 100.

2. Push Beyond Traditional PR: Find public relations help that does more than write press releases. Your PR support needs to understand Web 2.0 social media.

A prime example: DirectPointe, Number 1 on our MSPmentor 100, would not have qualified for our list without savvy PR support. The company’s PR representatives, SnappConner PR, spotted our MSPmentor 100 survey by watching social media networks closely. Then, the PR team worked overtime to make sure DirectPointe filled out our survey. By the time we saw DirectPointe’s data, we knew they were a major force in the managed services market. Now, SnappConner is promoting DirectPointe’s position on the MSPmentor 100 through company blogs and other sites.

3. Cross Link Like Crazy: Share your expertise through guest columns and guest blogs. Don’t pitch your company. Instead, pitch your expertise. A prime example: Phil Hill, co-founder and president of Vocalcity, wrote this TMCnet guest column showing readers how to pick a hosted VoIP provider. Sure, Hill’s company is a VoIP provider. But his column is informative — rather than a sales pitch.

Now, for the real magic: The only reason I spotted Hill’s column is because a popular blog (Smith on VoIP) linked to it. In other words, writing and publishing your message is only part of the effort. Network aggressively with bloggers, and you’ll find them linking to your messages — as long as the messages deliver true value rather than empty sales pitches.

4. Put Your Company First: During the Channel 1.0 days, VARs aggressively promoted their vendor relationships. They filled their web sites with dozens of logos stating which hardware and software they resold. It’s fine to promote your partners, but don’t do so on your home page. Move everything onto a single secondary page.

Now, use your website to brand your company — not your technology suppliers. Start by branding your specific managed services — rather than a third-party service. For instance, ThinkSmart Inc. (No. 31 on the MSPmentor 100) brands its services as SmartWatch, SmartSecure and SmartControl. Simple and effective branding.

5. Go Multimedia (If You Can): This is a tricky move that you have to consider carefully. At first glance, managed services executives should be guest speakers at conferences, and on podcasts and Webinars. But be careful. Leave your ego at home and work hard to find the person within your company who can truly engage audiences.

For instance, steal a page from MJ Shoer, president of Jenaly Technology Group. He participates in Web seminars and is a frequent guest speaker at CompTIA events. Shoer comes across as a down-to-earth entrepreneur who cares about his customers and partners.

You can repeat Shoer’s success by volunteering to speak at conferences hosted by your vendor partners. Just be sure to put your own brand — and expertise — front-and-center.

Those are five solid first steps. You can find more guidance from channel marketing experts like Larry Kesslin of 4 Profit, a consulting firm that works closely with solutions providers. I met Kesslin during a Cisco marketing summit in Miami, and came away impressed.

Read More About This Topic

• Related posts are coming soon