Funny how history repeats itself…ten years ago VOIP was the prominent emerging technology, similar to the way Managed Services is today. There was serious confusion back in the day in terms of what VOIP really was…was it the same as IP Telephony or was it different? Then how was IP Telphony different from unified communications? Reminds me today of cloud computing and private cloud, public and managed services. In the VoIP days there were new players and old players like Cisco and Microsoft getting into the game (and you know that when Cisco and Microsoft get in the game there is serious money to be made). Well, they are back in the game again. Even Best Buy and Staples are getting into the managed services game.
Managed Services is similar to IP Telephony in that it’s a game changing technology. The solution provider business model is getting turned upside down as companies try to become more sales-oriented organizations. Credibility is a huge deal too, as you are potentially taking over an entire network and need to provide your customer with a solid comfort level.
IP Telephony made VARs go beyond just networking and expanding their offerings. It really started the wave of selling “solutions” rather than just pushing boxes. Decisions were no longer being made by the IT guy, but became business decisions in many cases.
Early adoptors rule managed services today. Back in the days of cold calling for IP Telephony (IPT), very few thought the technology was ready for prime time. We’d always get responses like “call me back in 18 months when you can prove to me the technology works.” ROI didn’t even come up at that point, it was all about the technology being too immature to trust. Financial services were the early adaptors of IPT, and research shows they are doing the same with managed services.
Back in the day, telecom managers were not happy about IPT. They owned the legacy PBX and were the only ones who knew how to fix the darn thing. With the PBX on its way out, the IT guy was going to take over and they were all going to be put out to pasture. Now, with managed services on the rise, the IT guys are seeing that same pasture in their future!
Managed Services…try prospecting it to an IT manager. It isn’t pretty, but essentially the same fear is holding people back. So what is the moral of this story? Why do we care that history repeats itself? Everyone is in the game today. Everyone! So you have to be ready to take on anything and learn from the past. Know who your competitors are and why you should win. What makes you different from Staples? Wow, you might have to address that objection. So be prepared.
Have your story, your unique managed services value proposition down. Go beyond just saying you are a “trusted advisor”. Why? 3 out of 4 VARS position themselves as “trusted advisors”. (Not sure if Staples does yet…)
Also, know what type of managed services you are an expert in, what you can do for customers, and how you can help them grow their business. Show a case study highlighting success you’ve had working with businesses similar to theirs.
If you want to learn more and keep up with the game, here are a couple of great blogs and sites for you to follow and learn more about managed services….
www.thevarguy.com
www.mspmentor.net
www.msppartners.com
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We’ve been doing managed services in some form for over a decade. We started with the RMM part of it more than six years ago, using a tool from a company called Oculan (no longer with us!). I agree that in the early days, it was a tough sell beyond the idea of selling block time (retainers and the like) for regular onsite visits. The development of RMM and the maturation of remote access tools like LogMeIn have been the top reasons that managed services are now generally accepted and generally fast becoming commoditized. That means those of us who have been in the game the longest have the most to change; a lot of legacy systems and processes that will have to be reinvented quickly.
I’m not too concerned with the likes of CA (who just bought Nimsoft) or Best Buy getting into the game. Witness the pathetic efforts of Dell to get into the MSP game after acquiring Silverback. To this point, the sale of managed services is still largely built around trust and relationships. That may change in time as the market gets saturated with new players.