4 Challenges Solved Through Automation
Build business growth via strategic relationships that help MSPs solve business problems.
February 5, 2021
By Nick Heddy
Nick Heddy
Building strategic relationships with managed service providers (MSPs) and listening to their business needs should be a guiding force when creating new technologies to enable their business growth. Understanding the power of collaboration between the vendor and the MSP and the value of their insights can open new ways to learn about the critical issues they face, how they are affected and collaborate on impactful solutions.
For example, building a partner advisory committee (PAC) to brainstorm ideas and discuss emerging issues in the industry can be a significant first step. What starts with a few exploratory questions could transition to an engaging conversation. As time goes on, the discussions should transition to specific areas of business. In our experience, we learned that the critical issues and challenges our partners were facing included productivity, security, business analytics and the channel’s transformation. While the areas were varied, we determined that there was one solution for all — automation.
4 Problem Areas
Each area’s pain points revolved around outdated, time-consuming processes containing several human touchpoints. Streamlining the processes would dramatically impact the partners ’ business, making them more efficient, productive and secure. Partners are of various sizes, operate in different geographical locations and have vastly different client bases, yet they all shared these same problems. Likely, the issues facing our PAC are the same challenges facing many MSPs in the channel. We will discuss the top four problem areas and explain how automation offers a solution for all.
1. Productivity. Companies could always use more time and money. Unfortunately, both are limited, so using each effectively is imperative to success. This notion is especially true for MSPs who spend a fair amount of time managing clients’ software licenses. Each time a client adds, removes or changes a user, the MSP must go into each license portal and manually make the updates. These updates take away time that could go toward project work or client acquisitions. An MSP with a large client base, each with several employees, and utilizing an expansive solution offering, might see hundreds of license changes a day. Potentially they may need to hire a person or team to manage these updates. The associated time and costs of managing these licenses just increased dramatically.
By automating this process, MSPs can update via one portal, which would cascade updates to all associated licenses, eliminating the need for multiple touches in multiple outlets. The time savings would be enormous, and the changes would be instantaneous for the client. This process would be easily manageable for small and large operations, eliminating the need for a dedicated team. The MSP can reinvest the associated cost savings into the company and allocate headcount to more productive roles.
2. Security. The focus on security has risen in recent years as threats have continued to increase. The new work-from-anywhere landscape presents additional risks as more company data is moving digitally through public Wi-Fi, and teams are collaborating across remote platforms. This new work model has advanced the need for heightened security. Typically, when MSPs think about securing themselves and their clients, they focus on security software and threat-preventative technology. What they often fail to consider is the risk associated with manual, outdated processes. Manual processes with multiple human touchpoints add additional risk to companies through communication breakdown and data loss. The more manual processes a company has, the more open it is to these risks. MSPs should consider automating processes to enhance their security and their clients’ security.
Implementing technology solutions that enable automation reduces touchpoints, limiting the amount of human error. An employee can perform one motion that sets into action a series of events, completing an entire process with minimal effort. Data and documents are transmitted securely through workflows, ensuring only designated employees see and touch the information. MSPs will significantly increase their security posture by implementing automation in their processes. They can do the same for their clients. Established companies are more likely to have outdated processes, exposing them to greater threats. Rectifying outdated practices offer MSPs an excellent opportunity to enhance their client’s security while streamlining operations, which will result in higher productivity.
3. Business analytics. Managing clients’ technology and projects requires most of an MSP’s time. Collecting their company analytics, driving current client growth and prospecting new clients do not usually …
… receive primary attention. The time it takes to conduct these activities and the time away from more revenue-generating operations can be a big hindrance for MSPs. However, if this information were readily available, it would enable them to grow their business and prospect new clients in a more targeted and efficient manner.
Report automation technology enables the MSP by equipping it with data and information needed to make critical business decisions. Real-time data collection can present insights that are configurable to each MSPs’ preference. It will empower them to uncover solution gaps, expose unused licenses and understand key demographics, allowing them to increase product offerings, save clients’ money and strategically prospect new accounts. With the data collection happening in real-time and with fewer human touchpoints, the information will be more accurate and relevant. The MSP can continue providing client service while growing its business.
4. Channel transformation. Cloud technology and the channel ecosystem are evolving, changing the nature of business. MSPs won’t just sell and manage licenses but will have more dynamic client relationships. As companies continue their transition to the cloud, the number of licenses in an MSPs portfolio will increase significantly. Businesses making security enhancements, adding and removing employees and changing permissions will cause daily customer actions to grow enormously. The time required for these change-management activities across their entire client ecosystem will create a challenge for MSPs. Streamlining this process through automation will allow for easily actionable, multitenant changes that are accurate and instantaneous. This manageable client network will enable the MSP to service more clients and engage in more revenue-generating activities.
When an MSP initiates a change through automation, it creates a process of chained events, simultaneously impacting all associated licenses and removing several manual touchpoints. Being able to service thousands of licenses from one portal efficiently empowers complete life cycle management. Managing the breadth of its licenses through automation will also help with better data analytics and insight, creating a cohesive and robust ecosystem. As the channel evolves, the MSP, through automation, will position itself as an innovative leader in the industry.
The IT channel is going through a transformation that will shape the future of the cloud technology landscape. MSPs equipped with the most innovative tools and advanced solutions will be in the best position to take advantage of that landscape. With streamlined processes via automation and minimal human touchpoints, MSPs will increase productivity, enhance their security posture and accelerate client acquisitions.
Nick Heddy, chief revenue officer at Pax8, has more than 16 years of experience in indirect sales in industries such as technology and telecommunications. Heddy is responsible for revenue generation processes and ensuring key departments are aligned to create the best experience for partners. He previously held the role of SVP of sales and marketing at Pax8. He received the Circle of Excellence Award from CompTIA in 2018, and has been a speaker at the Channel Partners Conference & Expo, and more. Nick holds a bachelor’s degree in entrepreneuring from Central Michigan University and an MBA from the University of Colorado Business School. You may follow him on LinkedIn or @pax8 on Twitter.
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