Tough Times? MSPs Say "Bring Them On"

Here are some media headlines I’ve come across recently:

  • “Markets Plummet”
  • “Enough Already!”
  • and my personal favorite, “Ouch!”
Given all the bad economic news, you would think that managed service providers are cowering in a corner these days.  While there is certainly lots of economic pain to go around, I’ve had discussions over the last few weeks with MSPs who are paradoxically optimistic about the future of their business in this difficult economic climate.  So what’s behind all this optimism?  Here are a few of my gleaned insights from those in the trenches:

1. Expense Reduction is good for MSPs: When a company lays off employees in an effort to reduce expenses, its IT staff is not immune. Since almost all companies are dependent upon IT to run their business, they must adjust and look for more cost effective methods of meeting their IT needs.  MSPs are the obvious choice as they are able to provide a tailored, low cost service to meet an SMB’s IT needs.

2. Certainty in the face of Uncertainty: What’s the perfect cure for a churning stomach and sleepless nights?  Managed Services is like a glass of warm milk and cookies before bed to soothe the most nervous SMB.  A Managed Service contract allows a business owner to accurately predict their IT costs in any given month and stop worrying about unexpected IT costs.

3. Quicker, Cheaper, Better: well not exactly the Olympic motto, Managed Services allows MSPs to provide a higher level of service, at a reduced cost.  Businesses that were reluctant to sign a long term managed services contract when times were good, are more apt to sign a contract that reduces expenses when times are bad.

4. Thank Goodness for Long Term Contracts: Since Managed Services are sold over as a multi-year contract, MSPs do not need to worry how short term market conditions will affect their monthly revenue.  Existing customers who are being managed well are unlikely to cancel a long term contract as a knee jerk response to the current economic climate.

While MSPs are not 100% immune to the ups and downs of the market, the inherit benefits of the Managed Services model bodes well for weathering our current economic storm – prompting one MSP to say “tough times, bring them on”!  Now if only there was a Managed Services model to address the rest of the economy's problems...

You can learn more about the advantages of the Managed Services model and many other Managed Services related topics on our website at

Jim Hamilton is executive director of MSP Partners. MSPmentor is updated multiple times daily. Don’t miss a single post. Subscribe to our Enewsletter, RSS and Twitter feeds.
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