As an HTG Gold Member, we were honored to attend their November meeting in Orlando. This year’s event was especially significant for several reasons. Firstly, the HTG peer groups are now officially a part of ConnectWise events for MSPs all over the world - IT Nation Evolve. Secondly, this event highlighted some new trends and dramatic transitions most Managed Service Providers have to go through in order to preserve and grow their business.
The recurring theme of the HTG event was adding SaaS services, including voice, cyber security, video conferencing, data circuits, and more, to an MSP’s portfolio. After all, the rapid rise of SaaS technology was supposed to make end-users’ and providers’ lives easier. Instead, the providers of these new subscription-based services are going after most of a company’s IT infrastructure, thereby threatening MSP businesses.
According to the HTG event, tackling these services is a “necessary evil” for MSPs. In a way, this is true. MSPs want to stay competitive in the IT business, but these new technologies are not native to their core services. In order to acquire them, MSPs must consider significant investments of time and do a lot of prep work.
- Research and choose the services that compliment your current business.
- Consider hiring new staff to handle these services.
- Train and certify new and existing employees.
- Stock up on inventory if required.
- Update marketing materials and your website.
The list goes on.
All these activities interfere with day-to-day operations, taking the CEO’s and business development executives’ attention away from the part of the business that currently generates revenue. Now, if you’re an MSP and you’ve been struggling to keep your numbers up for two or three years in a row, then do you think you can afford to do this?
Solution for MSPs
Here’s the good news. There is a way for MSPs to acquire complimentary technology without monetary investment or current business interruption. The key is building the right partnerships with solutions providers who maintain their expertise relationships with the manufacturer in one specific area. They are called Master Solutions Providers because they cover ALL aspects of ONE particular solution, be it unified communications, security, data, or something else.
Master Solutions Providers are the new trend that will grow in 2019-2020. They perfectly fit the reality of today’s IT businesses. The enormous growth of the IT and SaaS market calls for this natural segmentation and encourages providers with multiple expertise in their niche. For the MSPs, partnering with Master Solutions Providers is the easiest and the most secure way to broaden their portfolio, retain their customer base, and create additional monthly recurring revenue.
How to select the new technology
Given this new growing trend, MSPs must brainstorm the best additions for their own business roadmap.
- The new solutions must be based on customers requests that MSPs couldn’t accomplish in the past.
- The new solutions must be “sticky” to increase customer retention.
- The new solutions must logically fit into the MSPs core services and compliment them.
Based on our research and current trends, the first choice will likely cover one of the following: unified communications, cloud contact center solutions, cyber security, business continuity solutions, or data circuits.
Find your perfect Master Solutions Providers and grow your business 13-20% starting in 2019!