MSPmentor

Normally, I like to keep my blogs to advice and tips on how to market and sell managed services. This month, I am going in a different direction. I want to ask you a question that I am unsettled on. I want to hear your opinion and get your thoughts on this. After making the switch to a managed services business model, what do you do with customers who refuse to give up your break-fix services?

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I concede: I often blog about the fact that many SaaS applications like Microsoft BPOS (Business Productivity Online Suite) don’t offer VARs and MSPs enough profit margin opportunity. But I had a rather enlightening conversation yesterday with Next Level Cafe, a managed services provider based in Minnesota. CEO Richard Anderson offered some timely perspective on the true SaaS opportunity. Here it is.

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GFI Software, the London-based provider of infrastructure solutions for SMBs, has launched a Building Blocks channel program, designed to help IT support companies make the transition to providing real managed services. The company’s strategy reinforces the familiar theme of moving from break-fix to recurring revenue. Here are some perspectives.

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In a case of demand for managed IT services and colocation outstripping supply, SunGard Availability Services has announced a major expansion of their three data centers in the greater Atlanta area. Here’s the scoop.

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MSPmentor recently noted that Best Buy is getting into the remote managed services game. The question then became: How can traditional MSPs best compete with a retail giant that has thousands of Geek Squad “agents” and massive marketing muscle?

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In preparation for next week’s third-annual MSPmentor 100 report, I reached out to PEQ Services + Solutions President and CEO Jason Evans for an update on the company’s 2010 strategy. When we spoke earlier today about PEQ’s managed services growth, Evans offered several key insights — including three anecdotes that surprised me.

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Savvis Inc. has a message for anyone doubting the cloud computing market: Check out our cloud revenues. Although still a small portion of Savvis’s business pie, cloud revenues at the company  nearly doubled in 2009 — getting a boost from new customers and existing media industry clients. Here’s a closer look at Savvis’ cloud revenue trends.

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Gillware has a rather intriguing recommendation to help MSPs drum up business: The company says you should hook up with an accountant, and provide the CPA with a free-for-life managed backup/online backup solution for their QuickBooks financial files. How can that lead to more recurring revenue? Here are some clues.

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Is your web-based management platform easy to use and simple to navigate? Can you identify problems and inefficiencies at glance? Can you quickly find the information you need? 
If not, then your software is costing you both time and money. Here’s why.

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Kaseya appears poised to launch the Kaseya 2 platform this week. The effort includes on-premise and SaaS (software as a service) tools for managed services providers and IT administrators. In fact, I think Kaseya is set to debut at least three SaaS tools for MSPs and IT administrators. Here are some perspectives.

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In a tough economy, the largest IT service providers — outsourcing firms and systems integrators — have been known to move downstream, seeking smaller deals with smaller customers. Cloud computing — and the ability to reduce the vendors’ cost of service — may also tempt the multi-billion-dollar, multinational IT firms to journey downmarket. Whatever the motivation, $6 billion Tata Consultancy Services (TCS) is making moves in the small and medium business (SMB) arena. Here’s how.

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Spiceworks, which develops network monitoring tools for corporate IT and managed service providers, has raised $16 million in series C funding. The financial move is noteworthy for several reasons involving managed services, software as a service (SaaS) and advertising-based systems. Here are some quick observations.

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There’s no denying 2009 was a challenging year. Nearly everyone was forced to cut costs, streamline operations and undergo the proverbial belt tightening to stay out of the red. It wasn’t easy. Salary levels were frozen. Bonuses canceled. Furloughs mandated. And, in the worst cases, employees laid off and businesses closed. Now, here’s some upside.

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Do you want a few quick and easy ways to upgrade your customer satisfaction now? The answer lies in your phone — and the following four tips. They’re simple tips. But will you actually embrace them?

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So, what generated buzz on MSPmentor in 2009? Here’s a look at the individual blog entries that attracted the most readership for Q1 (January – March) 2009…

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Just a quick heads up: We’re adding some features to MSPmentor this week, plus some more capabilities in 1Q 2010. Here are some clues about where we’re heading next.

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Here’s another blog entry that’s been spinning around my head for several weeks. It goes something like this: There’s no longer a first-mover advantage in the managed services market. The original theme — proactive, remote monitoring for a predictable monthly fee — is old news. So what’s next?

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First things first: Yes, Staples — the office supply store with red storefronts and the easy button — operates a managed services business. Instead of countering Best Buy’s Geek Squad, Staples Network Services provides outsourced IT solutions to SMBs with between 10 and 250 employees. I spoke to Jim Lippie, president of Staples Network Services, about the history of the company and the future of managed services, among other things. Here are some perspectives.

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As magazines move beyond running print articles on online, they’re asking managed service providers to help run increasingly sophisticated Web sites. That’s the experience of The New York Internet Company Inc., which this week announced Web management deal with US Magazine.

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Level Platforms is looking to expand in Asia, where it is building relationships with master MSP partners. Peter Sandiford, Level Platforms’ chief executive officer, called Asia the “next really great market for managed services.” Here’s why.

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Running a managed services practice is all about generating recurring revenue. Too many small IT providers get so hung up on the service part of Managed Services that they forget about the other ways to make recurring revenue. Here is my top ten list of ways to generate recurring revenue.

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As the ConnectWise Partner Summit kicks off in Orlando, Fla., MSP Services Network (MSPSN) is touting recent integration with the ConnectWise platform. But instead of betting her business on one relationship, MSPSN CEO Amy Luby is developing partnerships and relationships with a range of software providers and associations. Here’s an update on MSPSN’s strategy.

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Burning out. Stretched thin. Feeling overwhelmed. Instead of worrying about their wallets, some managed service providers are starting to worry about their personal health and family well-being. During the HTG Peer Group meetings in Orlando this week, plenty of MSPs are talking about achieving a better life-work balance. Here’s how they plan to do it.

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