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Managed Service Momentum

Posted on 11/01/2019

Managed Service Momentum.

Mark Curtis-Wood, Head of Network Services, outlines his thoughts.

What are the different MSP models currently in play?
For me there are three distinct models out there. One is a low level MSP which performs the obvious stuff such as alerts, management and monitoring; that effectively keeps the technology running. The second are Mid Tier MSP’s that overlay some value-added services. They keep the network running but offer additional extras to VARs and a broad range of other services over the top. Then you have got effectively out-sourced MSP’s which cover the network and infrastructure etc. They are the three main avenues.

Why should resellers and VARs consider adopting an MSP model.
It’s a win-win situation for everybody really. Customers are benefitting from lower CAPEX, lower OPEX in many cases as well as better SLA’s. Also resellers are gaining additional recurring revenue. There’s a margin-stack being built up which drives profits. Inevitably by selling more products to more customers builds loyalty and stickiness and develops wallet share.

From a vendor’s point of view it enables them to protect their own brand because especially with cloud services if you take Microsoft for example they are still able to sell a Microsoft branded service through a managed service provider.

How important is it for MSPs to bundle services for their clients?
I think it’s critical to bundle services because the whole concept of being an MSP is to drive economies of scale. That allows SME’s more than anyone else to access services they wouldn’t normally be able to do. These would normally require investment, resources and training such as when selling cloud services. But the MSP has already done that, so they can open more doors for customers.

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