https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2021 MSP 501 Application
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2021 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2021 MSP 501 Application
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2021 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

From the Industry


The Key to Customer Retention and Big Margins

  • Written by Datto Guest Blog 2
  • August 17, 2015
To be a successful MSP today, total data protection has to be the cornerstone of your business model, and not just an afterthought.

To be a successful MSP today, total data protection has to be the cornerstone of your business model, and not just an afterthought.

According to John Manley, Virtual CTO at New York MSP Atlantic, Tomorrow’s Office, “If you become an MSP and leave out the backup and disaster recovery, then what are you managing? If the customer goes down, do you really want to fight that fire with no solution in place?”

You can’t just backup data when it’s convenient, instead, you have to be constantly ready for downtime, so you can recover as quickly as possible when it strikes.

According to a survey from The Hartford, 36% of businesses surveyed have been unable to meet a client need due to an interruption in their operation. Although it isn’t the majority, it’s certainly an alarming statistic when you consider how much downtime can cost a company.

Total Data Protection Plan

With a solid total data protection plan, you can guarantee security and stability for your customer, and stability for your company through monthly recurring revenue.

MRR creates stability for a business, but it also provides the ability to forecast sales and create an accurate valuation of the company–and, thus, a clear endgame.

Of companies surveyed by CompTIA, 59% of companies are counting on growth in the recurring revenue in the next 12 months.

According to CompTIA, to properly reap the benefits of recurring revenue, companies need better sales and marketing skills along with their technical knowledge. In CompTIA’s 4th Annual State of the Channel, they found eight in 10 channel firms expect their sales and marketing to change in the next two years.

Looking back 20 years, this model differs from how MSPs were set, when everything was focused on hardware sales, charging a minimal fee and getting the customer in the door. Vendors were channel-centric, and your revenue came through sales.

In the early 2000s, value-added resellers came in to the picture. Services were layered around the actual hardware, driving revenue in a new direction.

Then came the evolution of the MSP. No longer relying on hardware, or the unpredictable break-and-fix method, where customers relied on the “call you when I need you, pay you when I use you” approach.

Stronger, stickier customer relationships highlight the MSP’s value, allowing a return on the customer service investment.

Thanks to the cloud and SaaS, services are able to drive the steadfast local break/fix customer to a subscription model. Through the cloud, there are also benefits like improved business continuity, SMB friendliness, adaptable capacity, optimized economics, confident compliance, sustainable recurring revenue and better account management. For a deeper dive into the 7 Essential Benefits Of Hybrid Cloud Backup, click here.

Attractive subscription services based around the cloud, like disaster recovery and data backup, are also making the convincing a little easier.

Increased Security and Stability

Subscriptions provide more security and stability for both ends. You have a steady customer, and your customer has guaranteed protection, no matter what.

As in the past, companies are adapting and changing or various reasons. According to CompTIA, the primary catalysts for channel business transformation are:

  • Cloud computing pushing us in new directions (41%)
  • Customer demand for different services and IT delivery models (36%)
  • Desire to move to a recurring revenue model (35%)
  • New financial models are more lucrative (32%)
  • Vendors pushing us to change (27%)
  • Margins on product sales declining (23%)
  • Defensive move against obsolescence (23%)

As we see, the top reasons are focused around adapting to cloud computing, answering customer demand for IT and recurring revenue.

Regardless of what your reason is, constant adaptation and change aren’t just something to consider; these are things you have to do. If you do not evolve, you will perish and fall by the wayside.

Rob Rae is VP of Business Development, Datto. Guest blogs such as this one are published monthly and are part of MSPmentor’s annual platinum sponsorship.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs From the Industry

Related


  • Multi-Cloud VMware
    Multi-Cloud: Strategy or Inevitable Outcome? (or both?)
    VMware’s approach to multi-cloud can help at any stage--wherever your business is at any given moment.
  • Backup vulnerability
    Backup Vulnerability: 4 Targets Hackers Might Utilize to Infiltrate Your Backup Solution
    Organizations should follow several best practices to address backup vulnerability.
  • Roaring 20s
    The “Roaring 20s” Are Coming
    2020 was a significant challenge, but the roaring 20s will come—thanks, in no small part, to partners.
  • supply chain security
    Three Ways MSPs Can Improve Supply Chain Security
    Prioritizing supply chain security defenses can also be a significant competitive advantage for service providers.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Disaster Recovery Planning Includes Ensuring That Data Can Be Recovered
  • Tactical Threat Intelligence Has a Critical Place in a Layered Cybersecurity Strategy
  • How the SASE Model Helps Secure Remote Workers, Branch Offices
  • What the Last 20 Years of Cyberthreats Have Taught Us

Galleries

View all

From The Second City: How to Use Improv as a Business Tool

March 3, 2021

Industry Perspectives

View all

5 Ways XDR Can Improve Operational Efficiency for MSPs

March 4, 2021

Multi-Cloud: Strategy or Inevitable Outcome? (or both?)

March 3, 2021

Backup Vulnerability: 4 Targets Hackers Might Utilize to Infiltrate Your Backup Solution

March 2, 2021

Webinars

View all

A Partner’s Perspective on Channel Success in 2021

March 23, 2021

XDR and Why it Matters to MSPs

March 24, 2021

Top Security Trends Impacting Technology Security Providers In 2021

March 25, 2021

White Papers

View all

Why Fortinet for my MSSP?

March 2, 2021

Small and Mid-Size Business Security: 4 Steps to Success

March 2, 2021

How SMBs Can Secure Endpoints and Remote Workers for the Long Haul

March 2, 2021

Upcoming Events

View all

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

RT @Channel_Expo: A HUGE thank you to our amazing #CPVirtual sponsors and exhibitors! 👏 @ATTBusiness @DellTech @8x8 @lumentechco @telarus @…

March 5, 2021
ChannelFutures

.@okta acquiring rival @auth0 in $6.5 billion all-stock transaction. #security dlvr.it/Rtzwdp https://t.co/4LvHCJuwsR

March 4, 2021
ChannelFutures

.@MicrosoftTeams features are coming to @MSFTDynamics365, the company announced at @MS_Ignite. #MicrosoftIgnite… twitter.com/i/web/status/1…

March 4, 2021
ChannelFutures

.@PreciselyData acquired by Clearlake Capital, @TAAssociates. #digitaltransformation dlvr.it/RtzbKg https://t.co/1rNYnTScxq

March 4, 2021
ChannelFutures

Thanks for attending #CPVirtual. Here's a Day 3 wrap and a look ahead to #CPExpo Homecoming in November!… twitter.com/i/web/status/1…

March 4, 2021
ChannelFutures

.@Veeam announces six annual Impact Partner Awards, with @SHI_Intl, @LogicalisUS, more. #cloud… twitter.com/i/web/status/1…

March 4, 2021
ChannelFutures

#XDR can improve operational efficiency for #MSPs. @TrendMicro #security #endpoint #AI #threatintelligence… twitter.com/i/web/status/1…

March 4, 2021
ChannelFutures

.@IBM adds two senior execs to leadership team at infrastructure IT spinoff, NewCo. @IBMNews @IBMPartners… twitter.com/i/web/status/1…

March 4, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X