As 2021 unfolds, we’re seeing a business environment increasingly open and less burdened by the pandemic. But where do the opportunities lie for MSPs in today’s market?
To answer this question, Ed Hannan, senior digital content manager at The Channel Company, sat down with Gary Pica, president of TruMethods, LLC, a training, peer and accountability firm for MSPs and cloud providers. Pica was joined by Jeannine Edwards, senior director of channel marketing for StorageCraft, an Arcserve company.
Below are some highlights from the interview. See more in the full video of the interview here: Resiliency and Recovery Report: Doubling Down on Business Security and Business Continuity.
Q: Where do we see MSPs going in 2021?
Gary Pica: You’ll see more push of infrastructure to the cloud. Before, it was moving slower because MSPs move slow, but now the customers are pushing that to happen. You really have to think about what does that mean to me, the MSP, when I have more customers that have 30, 40, 50 employees and have almost no on-premises equipment? Everything is either “app-ified” or in the cloud. What services are you going to offer?
I’m a big proponent for the past 20 years of consulting VCIO (Virtual CIO) services. They (CIOs) need to be able to make better decisions and it’s also going to be more complex. You need to be able to help them—and some other things are starting to go away. We held on to those on-premises servers, and now even monitoring is being done a different way.
Jeannine Edwards: We asked partners: What are the four places you’re doubling down on when it comes to managed offerings? It came to supporting remote employees long-term, cybersecurity, migrating servers off-premises into the cloud and additional business continuity strategies. So, if you’re not doing (any of those) today, you’re missing an opportunity.
Q: How can MSPs sustain and drive profitability?
Gary Pica: They have to do something they haven’t been good at, in the past: They have to understand their cost drivers. You have to be able to look and understand based on not just your tools but based on the roles in your business: VCIO, support desk, governance, centralized services.
You have to know your average cost per seat so you can predictably set a price, regardless of what your pricing calc looks like. If you don’t have command over (that) you’re going to go sideways. That’s why 25 percent of the marketplace is at or below break-even after a true owner’s salary, and that’s not a good place to be.