How Elite MSPs Tackle Today's Biggest Managed Services Challenges

By Frank Colletti, Vice President of Sales, SolarWinds N-able

From dangerous new competitors, to perilous price wars, security threats and the mobile device explosion, best-in-class MSPs (managed services providers) know how to turn challenges into opportunities. Their greatest strength is their ability to find new ways to refine and expand their practices to address the constantly evolving needs of their customers.

As we approach the half-year mark in 2015, here are five top business challenges MSPs continue to face and how many of our Elite MSPs are addressing them:

1. Born-In-The-Cloud Competition. Going head to head with born-in-the-cloud IT consultants and services providers is a new threat for traditional MSPs and IT services firms. These organizations have no legacy costs and their rock-bottom prices will get your clients’ attention. But what this new breed of competitor lacks is the expertise to combine cloud services with traditional on-premises services. Elite MSPs know that this is where they have an edge. Offering a hybrid services mix is smart in today’s changing IT landscape — and they never hesitate to remind their clients of that important fact.
2. Crazed Commoditization. Commoditization is a sign of increasing market maturity and it is a growing issue for MSPs. The reality is that the price for traditional monitoring is decreasing, not rising, and making a profit has never been more complex, especially as cloud service providers are now going direct to end users — at rates that most MSPs can’t even come close to offering. Elite MSPs have a viable answer: they extend their monitoring services from on-premises to hybrid and public cloud, while also providing desktop as a service and other offerings that keep them relevant while protecting against eroding margins and revenue.
3. Mobile Device Mania. The mobile device movement is spreading like wildfire throughout the IT landscape, and that’s why MSPs who haven’t yet adapted their practices accordingly are missing out big time. It’s common knowledge that the days of PCs and servers being IT’s primary concern are in the past. Elite MSPs are finding new ways to address clients’ changing needs by offering bring-your-own-device (BYOD) policy management as well as mobile device management (MDM) services. They’re selling services that streamline onboarding and administrative tasks related to mobile, and getting a grip on best-practice mobile monitoring requirements as well. These and other similar services have a huge impact on the end user experience — which, in the end, is what IT is all about, and should therefore be the first priority for successful MSPs.
4. Around The Clock Computing. Another part of creating a good end user experience is making it simple for end users to do business 24/7, which begins with providing anywhere-anytime access to critical applications from any device. What that means for IT teams and their MSP partners is that data protection needs to be addressed effectively at the mobile level, along with secure access and corporate compliance services that include mobile apps in use. Mobile policy enforcement practices must also be in place so that nothing slips through the cracks. As these vulnerabilities increase, enterprising MSPs need to be ready with the right solutions for their clients.
5. Cloud Is A Constant. It’s clear that cloud is no longer an emerging trend, but a transformative shift in computing that will be a part of the IT landscape for years to come. Another important truth is that most end user organizations depend upon a mix of on-premises computing and cloud services to get the job done. To keep up, MSPs must address both worlds, starting with including both traditional IT purchases and cloud alternatives in all price quotes. It’s time to recognize that clients are in transition as new cloud-based technologies re-shape their environments. An MSP’s pricing and offerings should reflect that reality.

Remote monitoring and management (RMM) solutions provide a valuable way for MSPs to overcome the ongoing threats that challenge their businesses. And while technology offers an important foundation for addressing the mash up that makes up managed services today, remember that world-class RMM should also include expert vendor guidance to help MSPs identify, price and go to market with the right set of services — no matter what is happening in the market. An experienced, partnership-focused RMM vendor will provide the business transformation services MSPs need to grow and thrive, efficiently and profitably.

Frank Colletti is vice president of sales for SolarWinds® N-able, a provider of remote monitoring and management (RMM) and service automation software. In this role, he is responsible for building the sales infrastructure and culture that supports the company’s managed service provider (MSP) partners worldwide, including new customer acquisition and vertical market efforts. With more than 16 years of experience in sales leadership, Colletti brings an in-depth understanding of sales and MSP expertise to N-able. Since joining the company in 2003, he has made significant contributions to the success and year-over-year growth of N-able and its MSP partner community.