Outsourcing IT is the norm?
In recent years, many companies have taken their IT environment off-site. The reasons vary, but the IT complexity and difficulty in hiring qualified staff are two primary motivations.Also, the increasing use of SaaS applications makes owning your infrastructure less obvious.Often the decision is then made to outsource this to a local MSP. Reasons for this are diverse but increasing IT complexity and difficulty in hiring suitable personnel have been two essential motivations. But also, the increasing use of SaaS applications makes owning your infrastructure less obvious.
The corona pandemic has added to this the need for everyone to be able to work from home.Add to that the growing number of cyber security incidents, and outsourcing the IT seems obvious.
Most customer organisations, especially those that no longer have their own IT department, are looking for a partner to support them in making the right choices within IT and simplypick up the phone if there are unexpected problems.
The word Cloud is often used as a kind of Haarlemmerolie. Still, in practice, it usually turns out to be a delivery model for IT capacity and the necessary knowledge is required to deal with it properly. The decision is then often made to outsource the IT to a local MSP.
Promising collaboration with partners
All in all, a fertile environment for MSPs, you might think. That is true, but the situation at the MSPs is also becoming more complex. Especially the changing demand for support from the customer and the requirements regarding, for example, regulations play a role in this. But also, for the MSP, the IT specialist, to find well-qualified personnel. Smaller MSPs find it challenging to keep all the balls in the air.
And then, of course, there is enormous competition from the hyperscalers regarding price and continuous innovation.
A distinctive value proposition with a strong focus on your customer group prevents a downward spiral with only price as a distinguishing factor—a so-called Red Ocean instead of arriving in the sought-after blue variant, the Blue Ocean.
If you still want to bring a solid and competitive value proposition to the market, then cooperation with other parties to still deliver a complete service is obvious.
The most important asset that MSPs have is the relationship with the customer and the position of trust, which often goes back years. But to keep the same customer, innovation and change are crucial as said the customer changes, so as an MSP, you will have to keep up.
The value of a Partner ECO system
Building a so-called partner ECO system offers many advantages:
- A grander scale in terms of infrastructure and associated tooling of the partners can be used.
- Own investments can be made in customer success to strengthen further and expand customer relationships.
- New value propositions are quickly tested and/or built, no or limited upfront investments are necessary.
- Specialist knowledge, for example, insecurity, can be purchased from a partner and integrated into its services.
- Expensive (ISO, NEN, ISAE) certifications no longer must be obtained by the company itself; you can also use those of the partners in the chain.
- The offer to the customer is much more complete, which further strengthens the relationship.
All in all, there are plenty of reasons for MSPs not to do everything themselves anymore but to work with an ECO-co system of partners actively.
And where is the customer?
But most importantly of all: what is the benefit for the customer?
The dependence on IT is constantly increasing, and the complexity is growing. The application of IT to support the primary business processes is also changing rapidly.
New Kretologies developments such as AI, IoT, Digital Twin and many more are the order of the day. As a customer, the entrepreneur (you) has a strong need for a partner who understands your business well and can support you in this. Also, as an entrepreneur, you don’t want to speak to a different supplier for each partial solution and become responsible for the integration yourself.
As a partner, the MSP will have to connect more to the business and elaborate less on technology. By offering your client a total solution from an ecosystem of partners, what are you as an MSP integrating, you can add the correct value for your client.
How can Force21 help
This phenomenon is already present in the MSP market but has only recently started to emerge, partly due to the many acquisitions. The benefits of such a model are apparent. At the same time, this does require a change in the MSP. Where perhaps doing everythingyourself was the standard, such an approach opens up a lot of new possibilities and opportunities. However, this does require a different way of thinking.
The Force21 team can support you in this.
As specialists in MSPs, we know no other.