Many companies are looking for ways to transition from a value-added reseller (VAR) into an MSP business. Managed service providers play an essential role in the IT world as they monitor IT services for clients at a set monthly fee. The use of a monthly fee is much different from the majority of VAR models that use one-time interaction charges. It may take a while to get used to this new model, but it will ultimately benefit your company in the long-term as it creates stability and offers more money at a predictable rate. The reduction of uncertainty will create less stress and help make budgeting for the future much easier. The adoption of managed service providers will continue to experience a high growth rate and will experience significant increases in revenue within the next two years. Here are a few more tips for value-added resellers that plan to transition into a managed service provider:
Create a Sales Pitch
Creating a clear and effective sales pitch is the first step into transitioning into a successful managed services provider. Transitioning existing VAR customers is not an easy process, and it is important to identify the clients who can benefit the most with the use of a managed service provider. Educating clients on the various benefits of an IT provider can play a crucial role in growing your consumer base. Clearly explaining the differences between the break-fix model and 24-hour monitoring can help differentiate you from your competition and ultimately help the transition process.
New Tools
Transitioning into a successful managed services provider requires the use of new tools. Remote monitoring and management is an essential tool for IT providers because it automatically monitors and analyzes the performance of your client’s computers and servers. It also allows you to update software and provide routine patch management from a remote location. Professional services automation is another essential tool that allows you to keep track of the various projects for each client. As you can see, the use of these new tools plays an integral role in the transitional period of an IT provider.
Standardization
The standardization of technology allows you to significantly reduce the time and effort that is required to provide IT services. As you know, one of the key steps in becoming a successful MSP business is the ability to perform at a high level and resolve problems in a quick manner of time. The vast majority of tech vendors offer product-specific educational programs that will help you develop a strong understanding of the various services that you will provide. The certification process also builds consumer confidence because they will be able to trust you in the management of their IT services.
Stability
One of the main benefits of moving from a value-added reseller into a managed service provider is the monthly payment model. Instead of relying on the break-fix model, you will receive payments on a regular basis. Ultimately, this will provide your company with much more stability and create a much less stressful environment for each employee. Budgeting also becomes much easier, and it allows you develop future plans without worrying about lost payments.
As you can see, transitioning from a value added reseller into a managed services provider offers a variety of benefits and many challenges. Over time, you will experience long-term success through creating an effective sales pitch, utilization of new tools, standardization procedures, and a stable program. Begin today the process of transitioning into a successful MSP business and enjoy the immense benefits of the IT world.
