How to Break Into Managed Services A 12-Step Program Regina P. Ciardiello

How to Break Into
Managed Services
A 12-Step Program
Regina P. Ciardiello
Editor
Vertical Systems Reseller (VSR)
March 18, 2009
Edgell Communications
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Background
B2B Publishing
company founded in
1984.
Includes 9 magazine
franchises, executive
conferences and Web
Seminars/Podcasts.
Custom Newsletters.
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The voice of the SMB reseller
community.
Monthly print publication.
Newly re-launched interactive
Web site (2nd time).
VAR Central weekly newsletter.
Real-Life Solutions monthly
case study newsletter.
New for 2009:
VSR Knowledge Centers, which
includes MSP Corner Podcasts.
MSP Corner Knowledge Center
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Established in 2008.
Designed to provide new and current MSPs
with “real-world” solutions.
Twice monthly podcasts with featured Zenith
partners.
Best practices and “take-aways” to help you
build your business model.
Why Managed Services?
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There’s a paradigm shift happening.
VSR’s 4th Annual End User Study reported that
42 percent of end users choose to work with
MSPs – up from 35 percent surveyed in 2008.
Customers now expect more for less.
Can control pricing.
Allows you to be “proactive,” not “reactive.”
Ability to provide constant 24/7 support.
But is it Really that Difficult?
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The short answer is: “No.”
VSR and Zenith’s MSP Corner Podcast Series
can help you get started.
Learn from 12 well-respected Zenith partners,
who are currently established as MSPs.
But how do I really get started?
Step #1: The True Cost of
Delivering Managed Services
Laura Steward, President,
Guardian Angel Computer Services
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How do I know if Managed Services is right
for me?
How do you become an MSP?
How do you successfully manage this
component of the channel?
How does the cost of providing services
affect an MSP’s operations base?
Step #2: Effectively Drive
Operational Efficiencies
John Mamon, COO, Radical Support
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Opportunity for recurring revenue.
Managed Services should be about the
customer experience.
Value proposition should be aligned with
customer expectations.
Take things one step at a time, and you will
be as efficient as possible!
Step #3:Avoid the Sales
and Marketing Gap
Dan Hay, CEO, IS Outsource
ƒ Embrace new challenges.
ƒ Sales and marketing is not just for new
prospects.
ƒ Position both yourself and your company
toward closing the deal.
ƒ Find out what the customer really wants.
ƒ Referrals are key – offer incentives.
Step #4: Maintain A Competitive
Profit Margin
Brett Jaffe, President, Axis Microsystems
ƒ How do you price your services?
ƒ Find out what your competitors are
charging.
ƒ Employ creative thinking to uncover “found
money.”
ƒ Don’t “overprovide” – only offer services
that you know the customer really needs.
Step #4: Maintain A Competitive
Profit Margin
Brett Jaffe, President, Axis Microsystems
ƒ How to deal with the current economy.
ƒ Transform yourself from a “tech person” to a
“business person.”
ƒ Focus on sales and marketing techniques (as
outlined in Step #3).
ƒ Run your MSP practice as a business, rather than
a “tech shop.”
ƒ Cut non-profitable clients; focus on those that
generate profit.
Step #5: Choose the Right
Software/Services Partner
Harry Bhatia, CTO/President, Net Activity
ƒ What are the deciding factors when it
comes to making the right choice?
ƒ What is the software vendor going to
provide…how are they going to help you?
ƒ Buy before you try.
ƒ Peace of mind.
Step #6: Evaluate Current Staff
and Business Requirements
Larry Shulman, President,
L.M.S. Technical Services
ƒ Create an effective business model that will
drive revenue.
ƒ Hire (and retain) the best people to
strengthen your team.
ƒ Work with people you can always trust.
ƒ Pitch new clients as they relate to your
company's business model and staff base.
Step #7: Develop Creative
Packaging and Pricing
Randy Sklar, President,
Sklar Technology Partners
ƒ Value proposition; offer something that’s
going to set you apart from the rest.
ƒ Offer a fixed fee:
ƒ No up-front money is required.
ƒ Same fixed fee expected each month.
ƒ Less effort, higher retention rate.
ƒ It might seem like a long road, but it’s worth
it in the end.
Step #8: Initiate End User
Processes and Validation
Mohit “Mo” Vij, Founder and CEO,
General Informatics
ƒ Learn from each other: Proactively look for
maturity level in client, educate them and
help them understand the process.
ƒ Once this is assessed, ensure the client
onboard and you have their “buy-in.”
ƒ Examine the client’s “M.O.” – How do they
operate?
Step #9: Understand the Benefits
of the Service Desk
Daryl Rinaldi, Owner, GizmoFish
ƒ “But I am already working with the Network
Operations Center (NOC).”
ƒ Do I really need a service desk?
ƒ Key selling point
ƒ A skilled technician is just a phone call away.
ƒ Steady revenue is attractive.
ƒ Benefits to both MSP and end user.
Step #10: Establish Effective
Communications – 24/7
Joel Swanson, Operations Manager,
ACoupleofGurus.com
ƒ Provides customer “intimacy, hence
heightened trust level.
ƒ Higher level of value proposition.
ƒ Customization.
ƒ Someone is always available to help – even
after hours.
ƒ Cost-effective in terms of staffing.
Step #11:Understand the Benefits
of Outsourcing
Dan Wilson, President,
Waypoint Solutions
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Save money, increase profits = happy
partners and happy customers.
Effective employee time management.
Potential customers are more likely to work
with a partner who outsources their
help/service desk.
keeps small problems from escalating into
big problems.
Step #12:Offer Customer Peace
of Mind
Ed Becker, President, BeckIT Systems
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Allows MSP to be strategic, both in their
thinking and measurable results where
technology is directly contributing.
End user can reach a qualified, experienced
and caring technician at any time.
Allows MSP to remotely access end user’s
desktop – at any time.
Closing Thoughts
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Fixed pricing is best – no surprises.
Get on an intimate level with your customers.
Clear communication is key.
Run your MSP operation as a “business.”
Seek customer referrals.
Hire and retain staff both you and your
customers will trust.
Might seem like a long road, but well worth it in
the end.
Useful Links and Resources
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www.VerticalSystemsReseller.com
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www.CompTIA.org
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http://www.mspalliance.com/
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www.zenithinfotech.com
Contact Information
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If you have any further questions, or to request
any additional information in regard to today’s
broadcast, please feel free to e-mail me at:
rciardiello@edgellmail.com.
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Also, to access a library of up-to-the minute
resources as it relates to the channel, you can
always log on to
www.verticalsystemsreseller.com.