Why the 80/20 Rule Shouldn’t Apply to MSPs
The 80/20 rule runs deep in the IT industry, and it’s certainly making its mark on the managed services market with an estimated 80 percent of the managed endpoints being governed by 20 percent of the MSPs. As a sales executive, I hate seeing that math play out in our market, but why should it matter to you?
Two reasons: First, if you’re not part of the 20 percent, the math should beg the question “why not?” And if you are part of the exclusive group, your partners should be taking notice and seeking out ways to accelerate your success, whereas your peers should be trying to replicate it. Are they?
The health of the managed services market is better than it was a decade ago and yet it’s still not where it needs to be. Even so, the 80/20 rule shouldn’t apply to MSPs. The processes, technology and talent to be an elite MSP are readily available. And so are the opportunities. So what’s the miss?
What the Best MSPs Do Right
For most, the answer comes down to strategy, scale and service capabilities. Successful MSPs have a growth strategy in play and a refined set of processes and deliverables. They’ve invested in the right talent and technology to scale the business, expand their services and support their customers with ease, efficiency and measure. These elite MSPs were quick to adopt IT automation, embrace new technologies—and they continually invest in their people and culture.
The good news for up-and-coming MSPs is that business model transformation and growth are not as difficult as they once were. Today’s vendor community and MSP elite have paved the way, and the market is primed and ready for managed services adoption.
There are also a number of new technology tools that put world-class business management capabilities within reach and at a much more affordable price point. Many of these tools are designed to ignite efficiency and help standardize the way services are delivered, providing smaller MSPs with all the essentials they need to successfully emulate the MSP elite —from remote support and scheduling, to ticketing, invoicing and more.
Complexity Equals Opportunity
Looking at MSP opportunities from an industry perspective, the state of IT has never been more complex. The rise of mobile and cloud computing have brought about a dizzying array of new endpoints, and new classes of servers that make IT environments more challenging than ever.
Add to this the fact that businesses are gearing up to implement advanced technologies such as private cloud (which is complex not only to build but also to maintain), and it’s clear that the demand for MSP support is only going to grow.
To tap into these opportunities, now is the time to arm your MSP practice with the right strategy, the right expertise and business-building technologies. By investing in your future, your team will be better equipped to not only run the business, but to scale it and make it more profitable.
Whether your goal is to grow big and grow fast, or simply take things up a notch this year, don’t hold yourself back. The 80/20 rule shouldn’t apply to the MSP market. Opportunity and enablement resources are everywhere, and MSP technology has never been better or easier to use.