MSPmentor 100: NetGain Maintains Managed Services Growth

MSPmentor 100: NetGain Maintains Managed Services Growth

While the fourth annual MSPmentor 100 Survey draws ever closer to a close (deadline is Dec. 17, 2010, folks), we continue our profiles of MSPs that made the third annual list. NetGain Technologies, which came in at No. 28, has had a year of modest growth spurred by some significant customer gains, although Mark Jacobson, NetGain's CEO said it's "not as strong as I'd like it to be." We find those types of statements refreshing: Another eager MSP that's always striving to improve their own performance. Here's the update.

"[I'm] pleased how we've been progressing," he said. "The bottom line is that business is up 30 percent overall, and without doing the numbers, managed services is up to the tune of 15 percent to 20 percent."

This seems to be a reoccurring theme with a number of MSPs: growth is good and the economy has leveled out, but folks believe their company could be doing better, despite being happy. Among NetGain's recent customer wins is a legal firm that previously managed all of its IT in-house. The response so far has been positive, Jacobson noted.

After the transition, Jacobson said, most companies realize they're getting a greater level of reliability and redundancy through an MSP.

Jacobson attributes some of his company's success to its focus on three main areas: outsourced IT, hosted apps and managed services. "I'm sure we have rivals, but a lot of them out in the market today are small companies ... and in our environment, we have scale in volume," he said. Smaller companies may have employees who wear multiple hats, but NetGain makes sure it has "more specialists by skillset [so] now the customer gets the very best [of] everything."

And where does the cloud fit into NetGain's business model? "The cloud means a lot of things to a lot of people. I would tell you I'm very bullish on it," he said, adding that the hosted model has "lots of legs under it and continues to grow."

NetGain's own growth, however, is Jacobson's main concern. The company spent more than $150,000 in 2010 on training and certifications, and continued to add employees to NetGain's four locations.

In the end, a company's ability to create happy clients through effective technology solutions is the key to survival for MSPs, he said."The market is doing well with a tremendous amount of opportunity. It's larger than we perceive."

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