The managed services market is projected to reach nearly $243 billion by 2021. With this growth, it’s no surprise that many managed service providers (MSPs) are seeking opportunities to boost revenue. However, many tech professionals still struggle to capitalize on the growing market due to lack of strategy, poor operational efficiency and the inability to adopt a cloud-centric mentality.
If you are a managed service provider who juggles multiple applications while handling an increasing customer demand, you are not alone. Here are five growth-hacking tips that will help you gain control of your digital environment and grow your MSP business quickly.
1. Embrace The “Cloud Selling” Mindset
Many MSPs understand the need to learn how to manage different applications and cloud-based solutions while providing exceptional value to the customer. Articulating the value of the cloud requires additional skills and training which can be time-consuming and costly. To help you break out of the traditional mindset and acquire cloud customers fast, consider the following techniques:
- Demonstrate a competitive advantage by showcasing unique benefits your service model brings to the table. This can be robust automation, multi-layered security, a single pane of glass management platform or an attractive pricing methodology.
- Hire professional salespeople. Finding the right sales talent is tricky because it requires an in-depth knowledge of various cloud models and software management systems. Hiring quality talent takes time and effort but will benefit your business long-term.
- Start small. The ease of management is one of the most attractive propositions for selling MSP services to small IT environments. Start offering your services to the companies that utilize simple peer-to-peer networks which can be replaced or upgraded during an onboarding.
Looking for a reliable service management solution to support your current customers and expand service offerings? Talk to us today!
2. Adopt a Smart Pricing Model
Deciding what services to offer at what prices can also be tricky. Popular pricing models for managed service providers include monitoring only, per device/per user, consumption-based, fixed and recurring pricing model. It’s difficult to evaluate which pricing model to choose due to an ongoing commoditization and margin erosion which leads MSPs to drive each other’s rates down.
A detailed profit and loss analysis (P&L) can help determine how much you should charge each customer depending on their service consumption and willingness to pay. Before finalizing your pricing model, consider all the costs and operating expenses.
3. Create a Security-Based Culture
As businesses continue to move their mission-critical workloads to the cloud, cybersecurity becomes a significant concern. Security awareness drives organizations to look deeper into problems with two-factor authentication issues, phishing threats and other vulnerabilities, among other issues. It creates a demand for managed security services that helps minimize risk and keep up with threats. By offering education and delivery, you can position your MSP business as a go-to cybersecurity advisor and strengthen your partnership by putting a value on financial liability carried by your customers’ systems.
Making security a point of strength and differentiation is easy with a platform that guarantees advanced protection for all hosts and tenants, monitors workloads and network traffic at a granular level and alerts users of potential threats. By employing a platform that offers a proactive approach to cybersecurity, you’ll give your customers peace of mind and create a partnership rooted in trust.
4. Automate Processes Wherever Possible
Providing quality service while managing a multitude of internal systems is difficult. Juggling multiple functions such as application discovery, remote monitoring, billing, backup, support and ticketing can lead to inaccuracy and inconsistencies. Even attaining technical capabilities beyond one or two specialties requires sound investments in multiple tools and software.
Process automation builds efficiency by removing the need for doing repeatable tasks. It also offers a built-in capacity for interruption where your staff can focus on urgent tasks while completing their daily activities. For some functions, like virtual machine backup, every step can be automated across a wide array of clients. Automation enables your admins to use their time more efficiently, which in turn, increases productivity and drastically reduces operational costs.
5. Leverage A Unified Cloud Management Platform
Handling multiple cloud customers while orchestrating daily process management and ensuring individual tenant functions don’t impact other tenants or overall performance requires a unified cloud management platform. 5nine Cloud Manager offers advanced management, monitoring and recovery for Microsoft Cloud environments of all shapes and sizes, including multitenant public, private and hybrid configurations.
With 5nine Cloud Manager, you can centrally create, configure, manage and maintain virtual machines across tenants; effortlessly view, consolidate and manage all your tenants from a single-pane-of-glass console; remotely perform actions with storage objects; assign role-based access control to multiple users; protect your customers with automated backup and recovery and quickly recover their virtual machines from remote locations to prevent downtime and data loss in the event of a disaster.
Take 5nine Cloud Manager for a spin with a one-on-one demonstration tailored to your specific needs and business issues and learn how this unique product can help you manage your MSP business more efficiently.