An Open Letter To MSP Vendors

By The Business Solutions Network

As the editor in chief of Business Solutions, my job description has me playing quite a few different roles as the needs arise. One such role is being an advocate for our readers, the solutions provider piece of the channel.

I’m using space this issue to ask the vendors in the managed services space — those who make PSA (professional services automation), RMM (remote monitoring and management), business continuity, and network security solutions — to not overlook the large segment of solutions providers who haven’t yet made the transition to managed services. Many of you are neglecting them and, in turn, are missing a big opportunity.

I’ve had enough meetings with these vendors over the years to know that many believe they know the market size and have a grasp on who the players are. If you’re one of those vendors, you’re looking at things wrong. A couple years ago, CompTIA performed some research which showed that 60 percent of all channel companies (i.e., VARs) have yet to make the transition to managed services. Additionally, a study conducted around that time by RMM vendor, N-able, revealed that out of 1,800 companies that did make the transition to selling managed services, each company was only able to convert an average of 12 percent of its customers to a fixed-fee managed services program. While these stats are about three years old, not a whole lot has changed.

At our most recent Channel Transitions event, an informal poll of the room of attendees showed that about half weren’t using a PSA or RMM tool. This is a great example of how the majority of the vendors are missing the boat. These Channel Transitions events are geared to that segment of resellers who are looking to get into managed services or take their young practice to the next level. Based on questions from the audience and feedback we receive, they need help with the basics. At these events, we have panels of established MSPs telling them what they need to do — that they need to adopt tools like a PSA and RMM. And yet, looking at the sponsors we’ve had consistently, only LogicNow and Webroot have made an effort to engage. Kudos to them for seeing the opportunity to educate and position themselves as leaders in their markets. As regional events, Channel Transitions events capture just a small segment of our audience. We know there are tens of thousands of readers who need help making the transition.

Additionally, some vendors have told us they are only targeting larger established MSPs. I ask those vendors to think back to when the MSP market was young and there weren’t a lot of large MSPs. Today’s large MSPs weren’t always large; they had to start somewhere. Today’s new MSP might be next year’s large MSP. By not addressing their needs today, you’re essentially pushing them to your competitors who aren’t overlooking them.

When I first started covering the managed services space, a couple things pleasantly surprised me. First, was the amount of education going on. Second, the openness and willingness to help. Both were really impressive. Unfortunately, I’ve discovered that much of that education and openness isn’t hitting the people who need it most. At Business Solutions, we’ve made it our mission to help those solutions providers who want to transition to the as-a-Service model. We’re invested in the futures of our readers. Are you?

If you’re a solutions provider reading this, know that there are great potential vendor partners out there for you. They have built amazing partner programs and can offer a lot of education and support. If you need help making those connections, please let me know and we’ll help as much as we can.