March 25, 2020
Why MSPs Deserve a Huge "Thank You" Right Now
The global health crisis is creating new challenges for businesses across the world.
Global markets are already seeing the impacts of this with the possibility of a recession similar to 2008 becoming more likely. Of course, small businesses like restaurants and retail are already taking a hit.
When all this is said and done, I envision we will take a step back and all pat MSPs on the back. The value of the services MSPs are providing today is heavily under-appreciated. At any other point in history, we wouldn’t have been prepared (from a tech perspective much less a service delivery perspective) to help small and medium businesses be able to stay open and work from home. I can't fathom how many businesses out there would be out of business without their MSPs right now. Thank goodness for MSPs!
So post-pandemic, if we are looking for some silver linings and opportunities for MSPs, here are some thoughts:
- The Channel is Stronger than Ever Before: MSPs are in a significantly better position than we were during the 2008 recession. In 2008, the MSP model was still coming to fruition and many were hesitant if this was the true evolution of the SMB channel and MSP technologies such as RMM and PSA were still maturing. As the recession hit, that’s when the MSP model finally hit home for many. Converting from project-based work/one-time revenue/break-fix to an MRR model brought in a steadier and more predictable revenue stream for MSPs and it provided SMBs with a more digestible investment in IT with smaller, monthly invoices compared to lump sum, project-based bills.
Today, the channel is in a much healthier financial position than ever before as a result of recurring revenue contracts, and MSP who have adapted and evolved are better equipped to charter unsteady and trying times.
- Continued security opportunities for MSPs: This presents an opportunity for businesses to prepare, adapt, and grow. More than ever, MSPs who are familiar with the monthly recurring revenue (MRR) model will be in a much better position than other providers who rely more heavily on break-fix or project-based work.
Unfortunately, the current pandemic has not resulted in a decline of ransomware and other malware-related attacks. Cybercriminals are continuing to target businesses of all types, and often using the crisis to scam and prey on businesses when we are most vulnerable. MSPs will continue to protect businesses from these threats using technologies like SaaS protection and proper BCDR solutions to ensure they can operate without interruption.
- MSPs Recognized as Essential: Governments recognize MSPs as essential services to communities, and this necessity has only increased as many companies are working remotely. Thanks to MSPs, businesses are equipped with the technology and expertise to deploy their workforce remotely knowing they have the support of their MSP behind them.
- Finding Talent: Just weeks ago, MSPs were having a hard time finding good tech talent to bolster their team. While there may be staffing reductions in some MSP and end-user businesses, this will present an opportunity for some MSPs to bring in more tech talent and strengthen their teams.
- MSP Acquisitions: In recent years, we’ve seen a trend of MSPs acquiring and merging with other MSPs. Those MSPs looking to grow may be able to offer a lifeline to struggling MSPs through mergers and acquisitions.
We’re still in the early days of this pandemic and no one knows at this point how and when we come out the other side. I find it important to find the brighter side of any bad news. For the channel, I think plenty to be optimistic about.
Thank you MSPs for all the hard work you are doing in your communities.