Far too often, the focus of monitoring tools and of Managed Service Providers (MSPs) has been on the technical capabilities. For example, the number of metrics collected, the types of applications and devices monitored, the number of reports available, etc. have tended to dominate any MSP’s monitoring offering. Faced with increasing competition and intense price pressure, MSPs have to look at alternative sources for revenue growth. MSPs will need to move up the service provider food chain and closer to their customer’s business in order to offer value-added services.
The greatest value and greatest revenue potential is when the service provider can influence the key business services of an enterprise. Consider the figure below. This figure indicates that a minute of downtime for a business critical infrastructure supporting ERP services is around $13,000. Now consider if the MSP can reduce the average down time of an incident from 60 mins to 30 mins. They will he helping the customer save $390,000 for one single incident. If the MSPs proactive monitoring can avoid say three outages of one hour each in a year, that’s a saving of over $2.3 million. It is such savings that MSPs need to strive for.
In the next wave of managed services – Managed Services 2.0 – MSPs need to focus beyond CPU, memory, disk metrics and start to deliver demonstratable business value to their customers. It is such MSPs that will become trusted advisors to their customers and will survive the competitive market of today. To succeed, MSPs need to have the right monitoring tools, the right processes, and the right people. It is this combination that you should aim to develop for success in the MSP marketplace.
We have just published a new whitepaper that discusses how MSPs can move to delivering managed services 2.0 and how the eG Enterprise suite can help MSPs get there. If you are interested in a free copy of this whitepaper, click here >>>