Wholesale VoIP Featured Article
What Makes for a Successful MSP
The managed service provider model emerged in 2000, according to IDC (News - Alert). The research and consulting firm defines an MSP as one that delivers subscription-based IT infrastructure management functions as a bundle of management tools and services.
But CompTIA (News - Alert) says that while having some basic remote management tools was enough to succeed as an MSP 15 or so years ago, things have changed and MSPs need to evolve and differentiate themselves in the marketplace. “Recurring revenue and remote monitoring and management are and will likely remain key elements of a managed services practice,” according to a CompTIA blog. “But competition, compliance, and new technologies are forcing providers to continually refine and enhance their customer approach and focus.”
Some of that new competition is coming from value-added resellers who are shifting to the MSP model. A recent VoIP Innovations blog says about 10 percent of VARs are undergoing such transformation, but it adds that only 10 percent of them are finding success as a result.
The VoIP Innovations (News - Alert) blog goes on to suggest that these entities might have better luck if they leverage real-time reporting and analytics, provide their customers with self-service portals, and do automated inventory. Analytics, it explains, can allow for better financial and operational performance. It notes that portals give end users more control, and MSPs more controlled costs. And it adds that automating the process of reordering things like DIDs can also add efficiencies.
Meanwhile, CompTIA says business continuity/disaster recovery and data backup has become a differentiator for some MSPs.
MarketsandMarkets estimates the MSP market will grow from more than $145 billion last year to $242.45 billion by 2012. “The major forces driving the managed services market include flexibility to match custom requirements, continuous upsurge in dependency over heterogeneous networks, and persistent rise in the complexity of technological solutions,” the research firm writes.
Edited by Maurice Nagle