The managed service provider business model has been around for years and, while many IT services companies have adopted MSP practices, they are by no means universally embraced. MSPs offer proactive, preventative management that helps clients avoid IT problems, an approach opposite to the break-fix model many IT service providers are still using. Making the move from an outdated model to managed services approach has advantages for both you and your clients. The greatest benefits lie in the potential of happier, more productive customers, and an opportunity for you to realize more stable and predictive revenue streams from recurring services contracts.
Switching to a Managed Service Provider Model
Becoming an MSP is better for your business. In order to succeed using the break-fix model, your clients need to fail, which is a true catch-22 situation. Your job is to enable your clients’ success and, as an MSP, you can offer standardized solutions that eliminate their IT issues before they ever arise. When you consistently monitor your client’s IT systems instead of responding to broken systems, you build more positive and stable relationships.
If you want to see consistent – and consistently growing – revenue, becoming an MSP allows you to predict revenue flow, as opposed to the break-fix model, where you rely on clients’ random problems occurring before you earn their business. Knowing your fixed expenses and predicting your revenues based on monthly client subscriptions are crucial to growing your own business. The MSP approach also gives your clients a real sense of security that someone is looking out for them 24-hours a day, and most clients will happily pay for that peace of mind.
Making the Transition
When you switch to being an MSP, make it clear that you’ll be providing your clients with exceptional proactive customer service that will actually save them money in the long term. While the transition to being a managed service provider is not an easy one, if your clients are sold on the value you’re bringing to their IT needs, they’ll soon see the benefits of making the switch with you.