The Ups and Downs of Managed Services

The press has done a heck of a job hyping managed services. What many VARs and solutions providers need now is a a reality check to show them the highs — and lows — they’ll experience when they strive to become MSPs. Here’s a great reality check from Addicted to IT, a blog that caught my attention earlier today.


One thought on “The Ups and Downs of Managed Services

  1. I don’t think that being an MSP is ever going to be the “be-all-end-all” of SMB IT services. Because as soon as you figure out the MSP piece, you start trying to figure out HaaS, and then you starting trying to figure out hosted offerings and moving up the solution stack. Worse case, you ride the pendulum of pricing – from break/fix, to block-hours, to managed-services, to a hybrid offer to… whatever’s over the next horizon.
    At the end of the day, you can roll all kinds of stuff (and risk) into the contract, and have a very elaborate offering. But the bottom-line is still client satisfaction. Write-up the contract any way you’d like, but if the client can’t get someone on-site in a pinch, you’re the one who’s going to suffer – regardless of what terms or SLA’s are identified in the contract.

    The other piece to this is reaching a critical-mass where you’ve spread out your risk across a client base – and you can afford a bit more client turnover.

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