5 Reasons To Make The Move To Managed Services

By David Weeks, Senior Global Channel Sales Manager, SolarWinds MSP

Discussion around simplicity, security, and service are dominating the MSP marketplace, bringing more demand and attention to managed IT services. At the same time, continued advancements in IT automation, integration, and all-in-one platforms — combined with a growing number of well documented how to guides, pitfalls to avoid, and best practices to adopt — are fueling a managed services transition for channel partners.

Making the business case for managed services even more lucrative are these five simple facts:

1. Small businesses are growing — According to Forbes, U.S. small businesses ended 2016 with stronger sales and improved profitability. In fact, the magazine reported businesses with less than $10 million in annual revenues experienced, on average, 7.3 percent annual sales growth last year. Bloomberg Magazine reported optimism among America’s small businesses soared in December by the most since 1980. And when small businesses are growing they tend to boost spending, pointing to bright prospects for technology services in the year ahead.
2. Market and technology complexity is increasing — From cloud to mobile, AI, and more, we have seen our industry advance in the past 10 years like never before. Sales processes have also changed dramatically as more and more buying and selling is performed online. The importance of the virtual sales rep is growing, just as the necessity of delivering an exceptional customer experience has become critical. At the same time, the customer has moved beyond IT to include line of business leaders and others across the organization. All of these changes in today’s digital age have made the business of computing more complex. Amidst these complexities, and as buyer’s demand more from the companies they buy from, the role of the MSP has become more prominent. MSPs are in the pole position to help their customers make sense of the changes and to be there to deliver the added value and customer experience vendors are often unable to provide.
3. Vendor support is better than ever — By and large, vendors get that the dramatic changes in the way technology is now sold and consumed means they need to step up their game. Top vendors understand their partners are front and center in their go-to-market strategy and are pulling out all the stops when it comes to partner education, enablement, and training. They want their MSPs to succeed and are empowering them to do so through a full complement of resources including webinars, playbooks, on-site events, digital sales, marketing tools, and more. Today’s vendors also recognize it’s essential for partners to elevate the customer experience and are aligning their channel programs and enablement resources accordingly.
4. MSP tools are maturing rapidly — From data intelligence and analytics, to IT automation, advanced remote monitoring, and management, we’ve reached a new era in which the technology arsenal driving an MSP’s business can be a game changer from a profitability and customer experience standpoint. Even better, there are price points and solutions that are ideal for every size MSP. The bottom line? There’s no excuse for an MSP business not to be powered by technology — and good technology at that.
5. IT skills gap is widening — Although the use of automation is on the rise among MSPs, top talent at every level is still in high demand. One reason is the human touch remains critical in our business. After all, relationships based on trust drive referrals and expand selling opportunities and customer retention. According to CompTIA, in 2017 the IT sector will see a stronger emphasis on soft skills such as collaboration, communication, and presentation capabilities. And while we may be asking more of our IT talent in the New Year, there still remains a skills shortage. CompTIA and other similar organizations are combatting it with services and certifications to help the technology sector bolster its job skills. CompTIA will soon launch its first IT professional association designed to nurture the success of IT pros throughout their careers, from their first job all the way to retirement. While change won’t happen over night, we are seeing more pushes in this direction as the IT industry strives to match opportunity with talent and bring more women into the field as well.

The opportunity for MSPs to serve as trusted advisors runs wide and deep. For those already invested in the model, business is good and for some it’s great. If you’re still on the fence about moving to managed services, jump off and jump in. There’s no better time than the present.

As senior global channel sales manager for SolarWinds MSP, David Weeks works closely with the company's top tier partners and major accounts worldwide to understand their needs, provide insight into current market conditions, and offer strategic sales and marketing recommendations. A regular presenter at the company’s global and regional summits, David is passionate about ensuring the success of SolarWinds MSP’s partner base.