Oct
24

The MSP Model and Why It Makes Sense Today Part 1: MSP-What Does That Mean?

The MSP Model and Why It Makes Sense Today Part 1: MSP-What Does That Mean?

October 24
By

This blog post is part one of a four-part series. Watch for related information to post here on the StorageCraft Recovery Zone soon.

Here at StorageCraft we are fortunate to have a terrific sales team whose members come from a variety of backgrounds similar to those of our partners.  Recently, Roy Seney, a lead Sales Engineer for StorageCraft, shared his past experience as a successful Managed Service Provider (MSP) with a larger team of which I am excited to be a member.  His perspectives of the MSP business are valuable not only to us as a vendor, but to our partners as well.  This four part MSP-focused series will expand on the philosophies of Seney as well as share outside information and helpful resources.

The series will cover:

  • what it means to be in an MSP business,
  • how an MSP business aligns with clients’ needs,
  • why ‘uptime’ is the most critical component in an MSP business model, and
  • how MSP profitability can be maintained over time.

Let’s start by determining a definition of what it means to be an MSP, or to provide Managed Services to clients.  To begin, here are easy some definitions of the term ‘Managed Service Provider’:

  • TechTarget SearchEnterpriseWAN’s definition of MSP is “… a third-party contractor that delivers network-based services, applications and equipment to enterprises, residences or other service providers.”
  • Wikipedia defines an MSP as “…typically an information technology (IT) services provider that manages and assumes responsibility for providing a defined set of services to their clients either proactively or as they (not the client) determine that the services are needed.”
  • Simply put, an MSP is a provider of monthly IT services to end clients.
  • Plus, MSPs are maintenance focused, not repair focused (it is more than just “break-fix” in the MSP model)

When you think about it, service providers who do not offer managed services are waiting for clients to experience downtime in order to initiate business.  From another perspective, it takes profitability away from a business to engage with an IT provider to deal with an IT problem that’s come up.  This creates a mis-alignment of business goals between the provider and the client, which is not a good business model.  In the next segment we’ll discuss how an MSP model aligns with client needs.