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Standardize processes, automate tasks and proactive cybersecurity.
Why do organizations need a managed service provider (MSP)? MSPs serve as an external technology department to manage daily maintenance.
Under a predictable subscription model, they monitor, maintain and secure the information technology, helpdesk, cloud management and cybersecurity. This reduces costly downtime. In this way, businesses are able to focus on core operations.
The most-often ranked MSPs are Net at Work, Integrisit, Corsica Technologies and Managed Solution.
Almost surprisingly, 2025 data from Infrascale indicated 49.9 percent of MSP professionals are female.
Almost surprisingly, 2025 data from Infrascale indicates 49.9 percent of MSP professionals are female.
Are MSPs terminally unique in their business challenges? In other words, do they face unique challenges, such as in billing customers and in sales because they’re selling intangibles, not tangible products?
No, they’re not terminally unique. Information-technology service providers face the same issues as most companies in traditional intangible sectors, such as insurance.
In the past, many MSPs have had problems coping with typical challenges, according to IT Europa in its 2014 study. IT Europa is a leading provider of strategic business intelligence, news and analysis on the European IT marketplace.
Actually, in their quest for profits, all businesses have to work to solve the following issues:
— Branding
— Pricing
— Sales
— Quality products and services
— Controlling expenses/cash flow
— Management/human resources
— Customer service and retention
— Strategic planning
— Innovation
— Security
The events and sectors might differ, but best practices in other industries are applicable and transferable to MSPs.
The events and sectors might differ, but best practices in other industries are applicable and transferable to MSPs.
The study’s key findings:
– Channels need to know how to charge for services: with falling prices for hosting and cloud services, the MSPs need to differentiate. One of the issues that came out of the study is that they have concerns over rising competition.
However, on the client side, there is a rising need for expertise and skills in making it all work, particularly when linking in to legacy systems, so there is a clear role for MSPs to use any vertical market expertise they have to provide an essential service, and charge for it.
– Clearer propositions are needed: delivery models should offer the flexibility and scalability that the study shows customers expect and which MSPs are glad to provide; but they may need explaining better; the industry is so new, and growing so fast it has yet to get its marketing message straight.
– MSPs need all the help they can get, in marketing, tools, integration and to use all the available skills and resources.
MSPs told the study that they have real concerns in finding the right partners, particularly among vendors, citing quality of support and quality of product as the two main things they regard as important or very important, especially by smaller MSPs.
– Many of the people in the study had concerns over enterprise mobility; mainly because of the scale of involvement, pace of change and the integration issues. There are just not that many people around who have done it to the scale that is coming.
Recommendations for MSP profitability
1. To reduce training costs and troubleshoot faster, standardize procedures. Use the same hardware, software and tools for every client.
2. Automate routine tasks to save technician time and reduce human error. Install automatic software updates, data backups and alert monitoring.
3. Package strong cybersecurity for increased profits. Security is an in-demand service. It increases ongoing monthly revenue. Provide businesses with multi-layered security services. That sould include employee training and endpoint protection.
4. Use value-based pricing. Instead of hourly billing, charge a flat monthly fee per user or device. This will result in a client’s stabilized cash flow. They will retain business longer and net new referral business.
5. Make maintenance a bigger priority. By solving small issues immediately before they cause downtime, clients will be happier. They will be inclined to refer new business.
So, the challenges are typical. Solutions in other sectors are applicable for MSPs, too.
From the Coach’s Corner, here’s a potpourri of topics:
5 Reasons for a Strategic Plan and its 6 Key Elements — Are you ready to compete? Is your company like many that need to rethink their strategic plans? Here are some tips in strategic-planning basics.
For Stronger Profits, Avoid 11 Typical Pricing Mistakes — In general, how can you manage the sweet spot – between your price-optimization and costs? Dennis Brown of the consulting firm, Atenga (www.atenga.com), says many companies make 11 pricing mistakes:
Create Buzz to Win Your Major Marketing Campaign — There are many reasons for marketing failure of a campaign. Here are 14 of the more important reasons.
The 7 Steps to Higher Sales — Secrets for sales success – seven steps to higher sales, five value perceptions that motivate customers to buy, and the three-step process for overcoming sales objections.
HR Management: 3 Values to Deliver Top Customer Service — The three values needed to achieve top customer service are easy-to-understand but arduous to achieve. But if your human resources program adopts and implements these values, you’ll achieve enviable organizational effectiveness – a high performance culture – for strong revenue.
“Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.”
-Albert Einstein
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