Remember in the early 2000s when there was no managed services model? When we were doing break fix work and hunting to kill practically every month?
I certainly remember never knowing how many team members I needed and had no clear way of predicting work.
Then came a revolution—the subscription-based managed services agreement. That completely revolutionized how services were sold. We were no longer just an hourly number. Our clients didn’t just hire us, as they might hire a plumber or exterminator.
We became integral to their businesses. They knew it and we reaped the benefits. If you had continued selling hours, your client and prospect base would become more limiting over time. Most good clients now recognize the difference between MSP services and hourly break-fix work.
If you continued to use the old model, you’d be hard pressed to grow (and more importantly, have a valuable business).
Over the past few years, MSP services have been further commoditized.
Today, you can find large mega MSPs selling services for ridiculously low prices. Under $30 per endpoint per month. The way you differentiated your value was in providing added services. Beyond having a responsive helpdesk or friendly team, you provided advanced security.
Security that these companies selling highly commoditized MSP services could not deliver (or at least deliver well). You gave your clients and prospects the peace of mind that you knew their industry, knew their regulations and had security solutions to protect them.
You had the upper hand. You were able to provide them enterprise security at a relatively affordable price, in a very personalized way.
Today your advanced security stack is at risk of becoming another commodity.
This year, we are seeing both compliance-as-a-service and advanced security stack offerings becoming commodities.
Compliance packages are being sold by software as a service providers looking to undercut your compliance services. They are selling direct to consumers and are so cheap, you would be hard pressed to make any margin, even break even, with a competitive price.
And advanced security stacks are following suit. Your clients are seeing the same stacks you are likely offering today at a deep discount. A handful of companies are starting to deliver volume pricing to the SMB marketplace, cutting into MSP sales of advanced security.
The concerning thing to me is that clients have not been educated on the difference between your advanced security stack and a commoditized stack. The only perception is a pocketbook decision.
These companies are selling security stacks for less than $10 an endpoint! How can you compete with that?
How can you make a margin and maintain an engaged and healthy team with those prices? How can you deliver personalized services your client expect?
In 2023, you have to think BEYOND your security stack. And certainly beyond your MSP services offerings.
You need to consider your cybersecurity War Chest.
The days of the advanced security stack is behind us. Unless you make the pivot to a war chest, you may be quickly surprised at commoditized the MSP services and security space is becoming.
This Friday, I am talking on this very subject. I want you to move above the compliance and security plays. There is a way to accelerate your growth and protect more users.
It will take a slight change in mindset. And it won’t be easy.
But it will pay off.
Join me Friday, December 2 at Noon Eastern for Beyond The Security Stack: Your Cybersecurity War Chest.
Sign up at www.galacticscan.com/friday.
