Insight session -- Build Successful MSP Service Offerings

© 2015 N-able Technologies, Inc. All rights reserved. 1

David Weeks

Global Channel Sales Manager

Building Successful Services Offerings


SolarWinds N-able Fast Facts

Provide IT management software that is powerful, easy-to-use and affordable

• The Leading RMM & Automation Platform for MSPs

• Mission Statement:– “To make our Partners the world’s

most successful MSPs”

• Measured by:– Customer Retention – MSP Recurring Revenue– Customer Growth

• Channel-Only

• 3,600 MSP Customers

• 160,000 Managed SMB’s

• Offices in North America, Europe, Australia, Singapore


Understand Your Prospect and Existing Customer Base

• Who are your best customers?

• Who are your most costly customers?

• Are you missing market opportunity?

• Do you want to sell up market?

• What is your average size of customer today?

• What is your average customer spend monthly?

• Do you have any specialized verticals or niche markets?


Target MSP Market

4

5,000+Enterprise

1,000- 4,999

Upper Mid-Market

100-999

Mid-Market

6-99

Small Business

1-5

SOHO

Mid-Market & Upper Mid-Market• Mid-market Managed Services

• Managed Monitoring • Supplemental• Resell• Average IT Spend $15,000-$17,000 per user annually

SMB

• Managed Services

• Proactive Services• A la Carte• Average IT Spend $2000 per user annually


SMB Market Reality

• 25% of SMB’s are candidates for advanced service models associated with verticals ‒ Professional Services, Medical , Financial, Manufacturing, Energy

• 75% of SMB’s do not want or have the need for managed services instead they want to buy products and services on a monthly basis such as: ‒ Anti-virus, Patch, Anti-spam, Backup, Assessments, Migrations, Hours, Projects

75%

25%


Where do your customers fit?

• Ad Hoc

• Software/hardware

• Break Fix/T&M

• Contract based

• Project based


Successful Conversion Strategies

Existing Customer To MSP Program

Break-Fix Essentials A La Carte

Block Hours Proactive or A La Carte

Proactive Proactive or Managed

IT DepartmentsResell or Supplemental

or Midmarket MSP

New Acquisition Programs # of Customers to sign in 12 months

Essentials A La Carte xxx

Proactive xxx

Managed xxx

Supplemental xxx

1.

2.


Define the Customer Needs

• Service centric customer

• Limited service requirements

• Primarily reactive

• Primarily proactive

• Directly attribute revenue to downtime


Where Should the Focus Be?

• End user is the catalyst to growth for MSP’s

• Cloud is reducing device counts but creating new project opportunities and revenue potential

• Span the full infrastructure coupled with expectations of the organization

• Relate all productivity and revenue per employee in your ROI discussions


Average MSP has 100 to 200 customers in in their database

Average SMB = 20 Employees• 20 Desktops| 100% • 2 Servers | 10% • 2 Network | 10%

25% | Proactive or Managed

Successful MSP ProgramsFULLY MANAGEDPROACTIVEESSENTIAL A LA CARTE

Server - $100• Advanced Performance Monitoring• Key Application Maintenance• Scheduled Preventative Maintenance• License & Asset Management• Managed Anti-Virus• Managed Backup• Additional Support Billed at T&M Rates

Network - $25• Quarterly Network Health Review• Firewall Management & Maintenance• Router Monitoring• Switch Monitoring• Additional Support Billed at T&M Rates

Workstation - $20• Availability Monitoring• OS & 3rd Party Patch Management• Scheduled Preventative Maintenance• Managed Anti-Virus• Hosted Anti-Spam

$650/month $32.50/user/month

Proactive Options• Hosted Backup - $70 + $0.75/GB• Managed Mobile - $5/device• Managed Compliance - $4/IP

Server - $250• Advanced Performance Monitoring• Configuration Management• Key Application Maintenance• OS & 3rd Party Patch Management• Real Time Server Optimization• Scheduled Preventative Maintenance• License & Asset Management• Managed Anti-Virus• Managed Backup• Managed Audit• Unlimited Remote & Onsite support

Network - $65• Firewall Management & Maintenance• Router Monitoring• Switch Monitoring• Unlimited Remote & Onsite support • Monthly Network Health Review

Workstation - $60• Advanced Performance Monitoring• Configuration Management & Enforcement• OS & 3rd Party Patch Management• Real Time Workstation Optimization• Scheduled Preventative Maintenance• Managed Anti-Virus• Hosted Anti-Spam


Managed Options• Hosted Backup - $70 + $0.75/GB• Managed Mobile - $5/device

INTERNAL IT DEPARTMENTS

Billable Services - $100-$150/hour• End-user support (Helpdesk)• Onsite & Remote Support• Moves, adds, changes• Project Planning• Upgrades & Hardware• After hours Support

Billable Services - $100-$150/hour• Project Planning• Upgrades & Hardware


Essential IT Support – Free• Light Monitoring• Asset/Software/Hardware Reporting• Branded Sys-tray Icon• Remote Control

Managed Anti-Virus - $3/device• Integrated AV deployment• AV Monitoring• AV Updates• Threat/Status Reporting

Managed Patch - $3/device• Windows Patch Management• 3rd Party Patch Management• Patch Reporting

Managed Backup - $100-$150/server• Integrated Backup Deployment• Backup Management & Monitoring• Capacity/Status Reporting

Hosted Backup - $40 + $TBD/GB• Offsite storage to a secure datacenter

Managed Mobile - $5/device• Mobile management, support & reporting

Managed Compliance - $4/IP• Monthly Vulnerability/Compliance

reporting

$50 - $250/month

Advanced Performance Monitoring• CPU• Disk Space• Disk Queue Length• Memory• Patch Status • Connectivity

Automated Preventative Maintenance• Check Disk • Defragment • Delete Temporary Files• Firmware Updates • Remote Access Enabled• Sync time with Domain

ControllerAutomated Preventative Maintenance• Check Disk • Defragment • Delete Temporary Files• Firmware Updates • Remote Access Enabled• Sync time with Domain

Controller

Advanced Performance Monitoring• CPU• Disk Space• Disk Queue Length• Memory• Patch Status • Connectivity

Cloud

Reseller • Full N-central access• Full Reporting capabilities• Internal Attended &

Unattended Remote Control• Advanced Performance

Monitoring• Automation management • Custom Services

$10/Server

$5/Network

$2.50/Deskto

p

$150/month/

Report Manager

Supplemental Services• Custom Dashboard Access• Performance Reporting• Attended & Unattended

Remote Control• Advanced Performance

Monitoring

$20/Server$8/Network$5/Desktop

Managed Monitoring• 24/7 Monitoring NOC &

Triage of alerts and notifications

• Automated Maintenance & Remediation

• Performance & Strategic Reporting

• Access to MSP support as needed

$250/Server$150/Network

Mid-Market MSP Server - 24x7 Full Outsourced ManagementNetwork - 24x7 Full Outsourced ManagementWorkstation - 24x7 Full Outsource Management

$350/Server

$100/Network

$60/Workstati

on

Outsourced Helpdesk & Project Support • 24/7 remote support

services for end users

$25/User$150/Hour

Managed Cloud Services

Cloud Services• Virtual Online Workplace• Application Management• Microsoft Office Suite• Hosted Exchange• Backup & Disaster Recovery• Secure Cloud Storage• Mobile Device Access $199/user/month

OnPremise Services• Workstation & Infrastructure Management• Managed Anti-Virus• Unlimited Remote & Onsite support • Guaranteed Service Levels

Cloud Services Options• Managed Mobile

$5/device

MSP PROGRAMS FOR SMBs


CORE DESKTOPCORE SECURITY SERVICE DESK MANAGEMENT




OPTIONALManaged Workstation Backup - $6.00/device

• Backup Deployment• Backup Management & Monitoring• Capacity/Status Reporting

Managed Mobile - $5/device• Mobile management, support & reporting


reporting

$6.00-$25.00/Device

A La Carte Offerings


Managed Anti-Virus - $6/device• Integrated AV deployment• AV Exchange mailbox management• AV Monitoring• AV Updates• Threat/Status Reporting


Managed Workstation Backup-$6.00/device

• Backup Deployment• Backup Management & Monitoring• Capacity/Status Reporting

OPTIONALManaged Mobile - $5/device• Mobile management, support & reporting


reporting

$15.00-$30.00/Device


Managed Service Desk- $15.00• Unlimited Remote Service Desk

support• Trending and Reporting Information• Capacity/Status ReportingOPTIONALManaged Anti-Virus - $3/user• Integrated AV deployment• AV Monitoring• AV Updates• Threat/Status Reporting


Mobile Support - $5/device• Mobile support & reporting

$15.00-$25.00/user


MSP Cloud LandscapeMANAGED INFRASTRUCTURE

Hosting Services - $100.00• Data Center & Service Management of core Server • Performance Based Monitoring• Application Maintenance• Automated Preventative Maintenance• Security Manager - AV and Patch• Guaranteed Service Level agreement on uptime

Workstation – $20.00• Availability Monitoring• OS & 3rd Party Patch Management• Automated Preventative Maintenance• Managed Anti-Virus• Additional Support Billed at T&M ratesOPTIONAL• Hosted Exchange• Office365• Proprietary Application Hosting


Managed Infrastructure Options• Hosted Backup – $TBD per gig • Managed Mobile - $5/device• Managed Compliance - $4/IP

Per User - $150/monthCloud Services• Virtual Online Workplace (DaaS)• Application Management• Microsoft Office Suite• Hosted Exchange• Backup & Disaster Recovery• Secure Cloud Storage• Mobile Device Access

OnPremise Services• Workstation & Infrastructure Management• Managed Anti-Virus• Unlimited Remote & Onsite support • Guaranteed Service Levels

$3000/month $150/user/month

Cloud Services Options• Managed Mobile - $3/device

MANAGED CLOUD SERVICES




Managed Server - $25.00/server• Server setup and configuration• Monthly automated maintenance• Monthly Reporting

Managed Backup - $100-$150/server• Integrated Backup Deployment• Backup Management & Monitoring• Capacity/Status Reporting

Cloud Applications• Office365 - $14.00/user/month• Hosted Exchange - $7.00/user/month• Web hosting • SaaS

Managed Mobile - $5/device• Mobile management, support &

reporting

$50 - $250/month

Billable Services - $100-$150/hour• Moves, adds, changes• Project Planning• Upgrades & Hardware• Workstation data backup• After hours Support

A LA CARTE CLOUD


MSP Programs for IT Department

MANAGED MONITORINGSUPPLEMENTALRESELLER

• 24/7 Monitoring NOC alerts and notifications

• Performance & Strategic Reporting

• Access to MSP support as needed (Billable T&M charges apply)

$100/Server

$40/Network

Managed Monitoring Automation and Triage (Optional)• Server- $250 (automation policy

development and execution)• Network- $100/device (automation

policy development and execution)

MID-MARKET MANAGED


Billable Services - $100-$150/hour• Project Planning• Upgrades & Hardware


• Full N-central access• Full Reporting

capabilities• Internal Attended &

Unattended Remote Control

• Advanced Performance Monitoring

• Automationmanagement

• Custom Services

$10/Server

$5/Network

$2.50/Desktop

$150/month/

Report Manager

• Custom Dashboard Access

• Performance Reporting• Attended &

Unattended Remote Control

• Advanced Performance Monitoring

$20/Server

$8/Network

$5.00/Desktop

Project Support• Engineering support to

assist with the planning, implementation, or support of a new project

$150/Hour

Custom Support• Customized Solutions

to meet customers’ needs and business requirements

Per engagement

Outsourced Helpdesk• 24/7 remote support


$15/User


Outsourced Helpdesk• 24/7 remote support


$15/User

Server• 24x7 Full Outsourced

ManagementNetwork• 24x7 Full Outsourced

ManagementWorkstation• 24x7 Full Outsource

Management

$350/Server

$100/Network

$60/Workstation

Managed Options• Hosted Backup - $70

+ $0.75/GB• Managed Mobile -

$5/device


Pricing Strategies

• What is the psychology of your customer and how they prefer to purchase

• Look at having several models i.e. annual, per month, per device, per user

• The shift will move to per user, it aligns with budgeting and ROI well

• Commoditization is happening, MSP’s require efficiencies and automation to continue to compete


Have Pricing Defined


Promoting and Selling the Services

• Sell to the business needs and requirements not the technology

• Managed Services is a pure business sale with the exception of supplemental services to internal IT Departments

• Understand that verticals require unique value propositions and unique selling propositions (USP’s)

• Talk to your existing customers understand why they purchased from you and relate that to your sales/marketing activities


Obstacles MSPs Face

• Sales!• Trying to sell the technology (i.e. RMM) vs the

value you bring• Making the sale about technical issues vs.

revenue protection and gains • Lack proper skill sets internally and oversell • Don’t separate NOC and HelpDesk functions

creating inefficiency • Don’t utilize automation and get caught in the

price game


Retention is Key

• Regular CSAT’s (customer satisfaction survey) are required on a regular basis

• Get to know your customer, relationship is one of the key USP’s you have as an MSP

• Get entrenched in their business through VCIO services, regular account management, assisting on growth etc.

• Contact and communication are key


Thank youDavid Weeks

Global Channel Sales [email protected]

Technology

Insight session -- Build Successful MSP Service Offerings