Changing to MSP Model

[Product Team]

I plan to transition from computer maintenance services at the client's site to managed services. Can anyone shed some light on this transition, what are the main things I should follow and is it worth the effort? (received from a RangerMSP user)

Post your comments..

[jtfinley]

This type of information may be something of value.

[midnightblue]

We made the transition three years ago and Managed Services has been our best business move. Be careful to make sure that you are using some good tools, we use N-able, and stress the value - increased uptime, improved performance, etc. Otherwise, all you are doing is swapping hourly pricing for a fixed price and still working just as hard. Also, not every client is a great fit for Managed Services.

[paulNZ]

I would agree with Midnightblue ... when we moved from break/fix to the MSP model our mindset remained around the cost plus mentality and/or hourly charge it was a struggle selling MSP contracts until we switched our mindset to selling value and business cost savings ... things like increased productivity when staff receive no spam (email filtering), increased server uptime with a proactive approach and not reactive (monitoring), guaranteed business continuity (not data backup solutions ... although this is included ... but 'boxes' that can virtualise the downed server in minutes).

To start on the MSP road 1] choose your tools (kaseya, zenith, n-able, level on, etc) 2] purchase and install CommitCRM (there are others some might say better some might not ... but you will NEVER EVER get the quality and speed of support that the CommitCRM team prove) 3] change your mindset to the value position 4] reap the rewards of a regular flow of residual income.

[digitalminds]

I concur with the previous posts. I would just add, when you decide to make the move to the MSP model, start talking with your existing client then. You can begin developing your sells pitch and your confidence. You are starting with a supportive and known market. Then branch out to new clients.

[wtbservices]

We made the switch just over a year ago and I can tell you we made some right decisions and some wrong ones. Karl Palachuk's book on the subject was very helpful. I would say that the one thing we did right was to take our time. We spent three months reading anything and everything we could and talking to other people who were already doing it. We started with two smaller clients as a shakedown cruise to see how things worked out and test our procedures. We adjusted and then added a few more, then a few more. Selling this to our existing clients was remarkably easy.

I would caution that the tool wars can be brutal and can turn out poorly. Sorting through and evaluating N-Able, Kaseya, Zenith, Level Platforms, Hound Dog and the half dozen others is a long drawn out process. You can sit through hours of sales presentations and install all of the demos but they aren't much help until you actually start using them with MSP clients. I would suggest picking a tool that looks like it will meet your needs but has the option to pay as you go. A year later you can look back and re-evaluate from a better perspective. Otherwise you may be stuck with a tool you spent $20,000 on but doesn't fit well in your organization.

You will agonize over pricing because there are no hard set rules. Here is a brief summary of how we based our initial estimates. We added up what a client paid for things that would have been provided in our plan over the last 12 months and averaged it out to a monthly cost. We then cut this by 15%. When we did this over several clients a pattern emerged based on their total number of servers and workstations.

This is why it was such an easy sale, the clients are paying less now than they were before. The upshot is that we are making more money. Once you take over the network, get it cleaned up, install your automation tools and start doing proactive maintenance the network really settles down. There are far fewer support calls and the overwhelming majority can be handled remotely.

[pyro77]

For the MSP's out there, what would you say is the best monitoring tool that strikes a balance between low initial investment, features and manageability? (maybe one that is similar in fashion to the features and pricing ofCommitCRM?)

We are evaluating Level Platforms at the moment and it seems powerful enough but lacks a bit of user friendliness at least in initial setup. Another one I stumbled upon is Spiceworks MSP -totally free! (if you can handle the adds from Dell and HP) and has minimal hardware requirements. Kinda cool...

[chrisits]

We use Zenith and we're happy with both the system (hosted) and its pricing.

[allenc]

ditto with Zenith, also the NOC 24/7 server monitoring and telephone alerts are working great for us, especially during the night (server downs)

[pyro77]

I ordered my Zenith Eval BDR device today, we will see how the setup goes from there. I will have to look into their monitoring service next.

[bkendall]

We use Labtech and love it. It is a lot cheaper than the others and offers a lot of functionality. I suggest you give it a try. Also, if you are considering switching to a MSP This book is a must have: http://www.amazon.com/Guide-Successful-Managed-Services-Practice/dp/0978894308

Brad Kendall
www.bradkendall.ca
bkendall@ccrtech.ca

[pyro77]

Thanks for the info on that book. I checked out Erick Simpson's website as well. He runs WWW.MSPU.US and has bootcamps on becoming an MSP. The next two are free if you signup through his website!

[bkendall]

No problem, that book changed my business and my way of thinking dramatically. I am planning on doing an overview of the Guide to a successful managed services practice and a few other really books on my blog in the next couple of weeks. The book also comes with a lot of nice templates and calculators to really help get you started. If you need any other info or assistance, don't hesitate to contact me.

Brad Kendall
www.bradkendall.ca
bkendall@ccrtech.ca