Have you considered how managed service providers (MSPs) could help you and your business? What could they possibly offer? The thing is, you may be in need of an MSP and not even know it.
“MSPs offer a broad set of services to their customers,” says Anvee Alderton, channel manager at Trend Micro Southern Africa. “This includes configuring, managing, maintaining, monitoring and securing increasingly complex IT environments. There are invaluable opportunities available to those who partner with MSP programmes that are offered by their vendors.”
What makes MSPs so special, then?
“Partners can earn 100% profit margin – or more – on the security solutions they are providing to customers as part of a managed service agreement,” Alderton explains. “This, of course, is a higher percentage than what you’d earn if you just bought annual licenses every year when your customer’s license expires.”
MSP programs usually offer pricing on an aggregate seat count basis. What this means that payment is based on how many clients are being managed. As business grows, the amount paid can become significantly cheaper.
Predictable revenue stream
Forecasting and projections are vital tools for business. Joining an MSP programme can open this up further because the revenue received is predictable. This means predicting revenue from customers and service delivery costs get a whole lot easier, and, well, predictable.
“Once you are able to figure in these costs and revenues, you have a better handle on what’s happening with your business today as well as its growth potential,” Alderton adds.
Multiple recurring revenue streams
There is always a benefit to having more than one revenue stream, particularly if that revenue stream is one that can be counted on month to month. MSPs focus a great deal on automation and repeatability. This means that MSP clients have to focus on controlling costs in order to improve the bottom line.
“The first step is to create processes and get your staff trained up on the tools used in the MSP program. Any products that are added are easily initiated after that,” Alderton explains.
Getting a handle on tax
Tax deductions are easy to spot in a current period instead of over a period of years in which the product is used.
Elimination of renewals
Renewals can be such a hassle. With the control provided by a decent MSP programme, updating licenses can take place through a self-service portal – day or night. Even on weekends.
The license can be cancelled when necessary and costs are simplified. The headache of figuring out whose license expires when, following up payments and making payments are streamlined.
“Onboarding and MSP makes financial sense,” Alderton advises. “It also helps cut back on a few of the stresses that businesses experience.”