Staying Relevant – The MSPs Dilemma 

It’s just not fair.

When you offer a service that helps the customer so completely, 24 hours a day, 7 days a week, and 365 days a year that the customer no longer notices, it can be tough to be asked “What have you done for me lately?” at contract renewal time. 

Yes, it’s true that you can point to uptime stats, or the number of breaches prevented, or any other good-news metric, but let’s face it: We only notice electricity when it’s not there.  

The same goes for IT services provided by MSP’s. Sure, the IT lead at the customer site loves you, and if that’s the only person that needs to see your value then great! Unfortunately, as costs go up, you’re not only asking for a renewal, you’re asking for more money to provide the same service. That’s a difficult conversation a lot of the time. 

For IT Services, Invisible Efficiency Is Both a Blessing and a Curse

For many successful IT services, their seamless operation often goes unnoticed until there’s a problem. This reality was echoed in the experiences of one of our partners last year. Backups were flawless, breaches prevented, there was no ransomware (phew!), all the licensing was in order, new devices were brought online seamlessly, and old ones retired without a hitch, data migrations were smooth…so many things went perfectly!

Yet, in 2023, the landscape for Managed Service Providers is changing. With an average price hike expected to be up to 20%, it becomes increasingly challenging to justify this increase, especially when most end-users are unaware of the hard work that happens behind the scenes. The invisible nature of successful IT services is both their greatest strength and their Achilles’ heel.

A Differentiator is your Secret Weapon

For MSPs looking to stand out and justify their value, especially in light of potential price increases, forging strategic partnerships can be a game changer. Partnerships extend beyond mere service provision; they represent a collaboration that brings additional expertise, resources, and innovative solutions to the table.

P2P allows an MSP to extend their solution portfolio, without the related increase in headcount, expensive certifications, or other resource consumption.

Done with the right partner, a P2P play can also become a significant additive revenue stream, helping to offset the jolts and bumps of business life.

However, caution is key. Those are your customers, and your good name is on the line.

When evaluating potential P2P partners, consider these vital questions:

1. Are they well-established in the market?
2. Do they have a proven track record in P2P, or is this new territory for them?
3. How relevant is their solution to your customers’ needs?
4. Are they specialists in your industry vertical or generalists?
5. Do they have a robust partner program?
6. How much work will be required from your end? Do they offer marketing support?
7. What do their existing partners say about them?
8. Do they stand behind their work with guarantees?
9. Are they willing to work on terms comfortable to you?

Partnering with an advanced business solutions provider like Azamba can be a real market differentiator for an MSP. Imagine the impact of providing your “A” customers with a new, functional CRM system. Delivered on time and on budget, it breaks down data silos, accelerates sales cycles, and boosts customer success.

With such value-added services, discussing a price increase during contract renewal becomes a different conversation altogether. You’re not just a service provider; you’re a business enabler.

If you’re interested in providing high-value business solutions to your customers, safely, profitably, and easily, reach out today to book a call. We’re on a mission to help partners like you stay ahead of the curve.