With mergers, acquisitions and transformations happening all around, it can be difficult to know which way to turn next.
Many resellers developed a break-fix service for customers as a means of shoring up revenues which were rapidly decreasing on the hardware and software parts of the business. But now, in an era of cloud ubiquity, this too is starting to look like a limited option. The next natural step is into Proactive Managed Services – an evolution of service delivery and of revenue and profit models.
Managed Service Providers (MSPs) make their money from keeping systems running rather than by charging to correct failures in the environment. The model is driven by being paid to ‘prevent’ the issues that once derived your income – a change with two key benefits to your customer:
|Increase Monthly Recurring Revenue|
Instead of being dependent on the hourly rate attracted when your services are enlisted to deal with a failure, your customers will be remunerating you each month with a guaranteed income regardless of the time and effort required of you to deliver the agreed levels of service.
By offering additional services and wrapping them up in an easily digestible monthly fee, your existing customers will get more services at a price attractive to them (with none of the nasty surprises inherent in a break-fix model)
|Win new business|
By offering proactive monitoring, you are well placed to take business away from your competitors who may still be satisfied (only as long as their customers continue to be also) to deliver point-of-failure services on a time and materials basis.
Encourage customers to convert to managed services based on favourable monthly charges versus the cost of the current monthly service plan. An MSP should be able to show a faster response and improved overall quality of service under the new regime for little more than the reactive service your customers currently enjoy.
Demonstrate in practice why Managed Services are more efficient/effective than pure break-fix.
ServiceNav allows you to create a picture of your customers and their key IT-driven business services. By prioritising IT services based on business impact (lost revenue or numbers of staff affected) you can react more appropriately to events. Prioritisation enables you to create different tiers of service.
Scheduled reports show the percentage availability of core services demonstrating and articulating the value of IT, and your services to the business. The ServiceNav platform can be shared with all your customers. This means that they can “buy into” the idea of managed services by validating for themselves the quality of service being delivered.
ServiceNav’s agentless operating technology means that it is easy to introduce into customer environments. The SaaS monitoring platform requires no investment in hardware, operating system licenses and resources to implement and administer and the simple per server charging model enables you, the MSP, to budget and build the costs of the monitoring platform into your own pricing.
Technical resources can be sweated on proactive, revenue-generating monitoring and continuous improvement initiatives rather than being benched waiting for issues to arise. The mobile application allows your field staff and end customers to keep abreast of current issues validate service quality at any time.