National Cybersecurity Awareness Month Reminds MSPs of the Importance and Opportunity with Managed Security Services
The Cybersecurity Landscape for MSPs
Today’s managed service provider (MSP) clients are at risk whether they acknowledge it or not, and they all have different levels of awareness and appreciation of the cyber threats their businesses face. As their outsourced technology provider, they expect you to be responsible for their cybersecurity needs and help keep them protected. For the MSPs who view themselves as their clients' “trusted advisor," keeping them protected is even more critical.
In a TechValidate survey, 87% of respondents acknowledged they had lost customers because they needed more security services they were not yet providing - highlighting a clear need from customers and an opportunity for service providers. As the cybersecurity demand from end users continues to exponentially grow, so does the opportunity for Service Providers to expand their IT offerings with managed security services.
MSPs have the opportunity to thrive in cybersecurity and expand their IT business since they already serve customers who see value in outsourcing their technology needs.
Video Above: GreatAmerica and Collabrance present a webinar on the evolution of managed security services in the IT Channel.
In this blog, we will discuss the opportunity for MSPs to grow their IT business and enhance their reputation to become what is known as a Managed Security Service Provider (MSSP).
Comparing an MSP to an MSSP
There are no clear definitions of what distinguishes a MSP from a MSSP. One way to think about the difference is that an MSP offers solutions securely and considers security, whereas a MSSP offers secure solutions and leads with a security-first approach. A MSSP offering includes the basic security fabric that you will find with most MSPs and adds incremental security solutions to continue to strengthen that security fabric.
One of the benefits that is most appealing to offer more managed security solutions is the pricing. We see MSSP Offerings sold at $200+ per seat, whereas a typical MSP Offering sold around $110+ per seat. The key to pricing is truly having an understanding of your MSSP solution and the ability to support it, as support hours and incremental vendor costs can quickly absorb the additional pricing. Our Collabrance costs to Service Providers is approximately $100 per user, enabling them to achieve around 50% gross margin on an MSSP Offering while outsourcing the majority of the service support.
Related: How to Become a Managed Security Service Provider (MSSP): Your Customer Depends On It
Overcoming MSSP Pricing Objections
Competing on price means you lose on price. Pricing, cost justification and communicating the value of a sale is a top challenge for both MSPs and MSSPs.
Just as technology and security have evolved, the way we purchase as consumers is changing. An As-a-Service Financing Option has become more common and expected from buyers in today’s market.
Instead of presenting a sticker shock of the total cost, Service Providers are now leading with a manageable monthly payment option that buyers can easily budget for. GreatAmerica helps Service Providers bundle the hardware, software, cloud services, network services, consulting, training installation and managed services into one simple, monthly payment. The GreatAmerica Hardware-as-a-Rental (HaaR®) allows your customers to acquire the updated technology and security they need at a price they can afford.
Not only are Service Providers able to overcome customer pricing objections by presenting a monthly payment option, but they are also acquiring more managed recurring revenue (MRR), building their business valuation and scaling their IT business faster. With As-a-Service sales, customers are getting more frequent upgrades and in turn, they are able to afford more of your services. This results in larger and more frequent deals for you and reduced support labor as a result of newer hardware.
Get started with HaaR today with this step-by-step guide.
Security Concerns with Windows 7
There are plenty of reasons why users need to get upgraded from Windows 7 & Server 2008. However, the number one reason customers need upgraded from Windows 7 and Server 2008: SECURITY.
As their technology provider, they look to you to get them upgraded, or they may go to a competitor
who will transition them and proactively work to keep their business secure.
This also happens to be the largest IT upgrade opportunity in 20 years with almost a third of workstations still running on Windows 7. Regardless if you consider yourself an MSP or MSSP, customers need your help keeping their information and data safe by getting transitioned before the end of life date: January 14, 2020.
Use our Free Windows 7 & Server 2008 Toolkit to help create urgency and educate users on how you can help.
Check out our Windows 7 Hub for everything you need to know, plus more.
Building Your Business with Managed Security Services
The long-term route to position yourself as a security expert is to evolve your managed services business to become a MSSP. We anticipate Service Providers who don’t evolve their managed security offering will continue to lose more customers and may be left behind. However, we believe that MSPs who do evolve to become a MSSP in response to the demands of the market – will thrive. MSSPs will continue to capture more opportunities, deepen customer relations by differentiating from competitors who fail to make the transition.
Transitioning your business doesn’t happen overnight. However, we believe the fastest way to go to market, manage risk and remove barriers is to outsource with an experienced MSSP provider. To help Service Providers stay ahead of the curve, better navigate their IT offerings, and avoid missteps, Collabrance, a GreatAmerica Company, offers a private-label MSSP offering you can use to capture more opportunity and help better protect your end-user SMB customers.
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