Here’s why you should take advantage of the MSP model, especially now.

November 21, 2022

4 Min Read
Business and technology concept. Smart office.
Business and technology concept. Smart office.Getty Images

By Sschneider Electric Guest Blogger

We’re currently in a technological transition where data — and not the IT its created on — is becoming the true business driver. Companies need data to adapt to customer needs, adjust operations and dynamically shape their business strategy. It’s becoming crucial to keep up with growth, stand out and remain competitive. To do this, they need their technology to keep pace, but they don’t have to do it alone.

The managed service provider (MSP) model allows companies to focus on core competencies while meeting an ever-changing business environment. Acting as a trusted advisor and true member of the team, an MSP can provide outside support for clients surrounding data management, infrastructure, devices and more — whether the client is adapting to industry changes or trying to survive economic flux. Those who offer managed services secure sustainable, recurring revenue, build strong relationships with clients and differentiate themselves from competitors, making the model increasingly attractive.

Are you taking advantage of the MSP model opportunity? Here’s why you should.

  1. Support clients through economic flux: Economies across the globe are in turmoil, due to a variety of factors. Supply-chain issues leftover from COVID-19, geopolitical conflict and a tech industry hiring freeze are all factors. An MSP’s role is not only to monitor assets, but also to act as a consultant to clients, helping them look at their cash flow, eliminate waste and drive value to other parts of the business.

In today’s economy, many companies are resource-challenged and strapped for in-house manpower, especially as layoffs continue. Companies have spent a lot of money on IT equipment and software but have no one to effectively manage it. MSPs help them prepare a strategy with a specific, proactive plan of who is responsible for what if the power goes out.

Additionally, a struggling economy can put a strain on a client’s IT budget. The MSP model provides a solid solution that acts as a flexible workforce without affecting the operational budget.

  1. Secure recurring revenue and strengthen relationships: One of the biggest benefits for MSPs is securing sustainable revenue as their client list grows. Not only does this consistent revenue stream help keep the bottom line secure, but the MSP model also can further bolster that revenue by building strong relationships with clients.

IT service providers (ITSPs) that break into the MSP model gain the ability to offer more value with a personal relationship, while existing MSPs can expand their reach to new clients and, at the same time, double down on annuity clients who provide important revenue. This consultant role is a key differentiator. By positioning yourself as a strategic advisor, you can gain trust with clients, dive deeper into their business model and secure future business.

  1. Help customers adapt to industry growth: According to Gartner, in 2018, about 10% of enterprise-generated data was created or processed outside of a traditional data center. Gartner expects this number to reach 75% by 2025. What does that mean for your local coffee shop, grocery store, bank, and so on — businesses that understand they need IT infrastructure to support their new app or online ordering system but don’t have the bandwidth to manage it? It means they’re outsourcing. Especially when it comes to power management.

In fact, according to IDC, more than 60% of companies go outside of their core business to support edge deployments. If you’re not already offering managed services, now is the time. MSPs are the ideal partner to help customers adapt and stay competitive. After all, if you’re not changing, you’re not growing. The MSP model provides high-level, immediate visibility of all technological assets across locations to help clients avoid costly downtime if (and when) something goes wrong, as well as save brainpower for higher income-producing activities.

Ready to Learn More?

The Edge Software and Digital Services Program by Schneider Electric allows ITSPs to add the managed power model into their offerings and for existing MSPs to continue investing by expanding their managed services offerings. Leveraging the many MSP certifications available, you can learn how to monitor, manage and fix issues related to critical IT infrastructure, plus gain access to tools and incentives after certifying. Existing MSPs can access continued education trainings, and all enrollees can take advantage of the lifecycle rebate, as well as one-on-one support with a dedicated success manager.

Enroll today.

This guest blog is part of a Channel Futures sponsorship.

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