MSPs: Are You Fully Monetizing the Services You Deliver to Enterprise Clients?
Are you fully monetizing the services you deliver to enterprise clients?
This question may appear, on the surface at least, to be odd. You deliver services, and the clients pay for those services – of course, you are monetizing them.
However, the adverb of the day here is “fully.”
If your shop is like that of most MSPs, your clients are stuck with inflexible fixed cloud service contracts. These contracts, when they come up for renewal, would ideally shift into a mode that allows an enterprise to purchase the services they need with flexibility. Your shop would be able to offer quantity-based discounts, time-based discounts and the ability to make changes to individual services and resources throughout the contract period.
Anything is possible once a contract comes up for renewal, but can your existing business processes support it?
Trying to deliver a truly customized service package – a “white glove service” that only gives and bills clients for what they need and use – carries a high risk of failure if your business remains mired in labor-intensive manual processes. You lack the necessary provisioning, metering, and billing chops to consistently deliver on the promise.
In its “2018 Trends in Hosting & Cloud Managed Services” report, market research firm 451 Research cites among its top 10 trends the rise of “XaaS” – Anything as a Service.
To quote: “XaaS extends the range of potential services that providers can offer beyond the basic computer or low-margin operational services to other networks, storage, and security offerings. Disaster recovery, backup, monitoring, and reporting are all strong candidates for managed delivery, and provide higher-margin revenue as more enterprises seek cloud delivery that is transparent and integrated.”
Are you ready for that? You can bet a growing number of your competitors are.
Your business will sink in a sea of spreadsheets if you attempt to evolve in this direction while still relying on manual processes.
It’s time to upgrade and automate service provisioning and usage metering. However, DIY builds for a small to mid-sized MSP can be a significant drain on the business. Your best people should be dedicated to billable client work, not scripting code.
Instead, go shopping for a dedicated technology partner with the capability to enable clients to manage their whole order entry workflow in one place, provide your team with automated order entry and provisioning, and consolidate and simplify billing.
With this kind of system in place, you will, at last, be in a position to fully monetize your business.
If you’d like to talk to us about monetizing your billing process, or about how to deliver your cloud to customers more quickly and efficiently, we’d love to hear from you. Contact us today and let’s get started.
Contact us today and let’s get started.