MSP Partners - The Key to Success

MSPs have always had to choose their partners wisely. But the criteria MSPs apply to their technology partners differ from that of VARs and SIs significantly. Resellers are typically focused on attributes such as technical specs, brand power, and discount structure. That’s because they had to close purchase deals with customers who knew what kind of hardware and software they were getting.

MSPs like Henson Group are in a much different position. They are delivering services and optimizing customer satisfaction over time. Customers have less visibility into how MSPs deliver value—while MSPs have to be more concerned with the quality and efficiency of an ongoing engagement.

Here are my key criteria I use at Henson Group when choosing a MSP partner:

1. Solid technology. Technical excellence is important to MSPs, but reliability and simplicity can be more important than traditional “speeds and feeds.” That’s because MSPs need to avoid downtime and glitches that undermine customer satisfaction. They also need to avoid implementation and integration snafus that can eat into profit margins.
2. Ease of use. Ease of use has always been a desirable product attribute, but it has become much more so now that MSP operating margins depend on it. MSPs should look for partners providing solutions that are clearly designed to be as intuitive and self-configuring as possible.
3. Responsive support. Responsive technical support has also always been important to the channel. Customer satisfaction imperatives MSPs face make it necessary that they acquire fast answers on a 24x7x365 basis. The typical outsourced support model rarely cuts it when service to a customer is actively compromised. It may even make sense to work with a partner who can support the customer directly where appropriate.
4. Service-aligned cost structures. MSPs have to be very careful about the cost structure they build into service offerings. Cloud-based service providers that charge for every unit of utilization, for example, can put MSPs in the uncomfortable position of having to ask customers for extra money following an unanticipated spike in business activity. A better approach is one that handles such spikes with respect to long-term account retention.
5. Reporting and metrics. MSPs take full responsibility for service outcomes, they often require substantial insight into availability, utilization, and other aspects of the technical environment. They may also have to provide a variety of reports to customers. The right vendor should provide this kind of reporting.
6. Solution completeness. MSPs need to keep service delivery as simple as possible. It helps to limit the number of “moving parts” that need to be integrated, and to not have to manage an excessive number of vendor relationships or create complex cost structures. Partners that deliver complete solutions can help MSPs achieve all of these objectives.

My Key takeaways:

• MSPs need cost models that support their business model.
• Convenience and support can be as important to MSPs as they are to customers.
• The MSP model makes the MSP’s brand more important than the partner’s.