The New Partner Mentality in Managed Services
Submitted by Charles Weaver on Thu, 11/19/2009 - 08:09.
One of the lessons I learned from last week's MSPWorld in Las Vegas was that MSPs are finally embracing the notion of partnering with other MSPs. No, this is not a new concept but it is the first time I witnessed it happening on a mass scale. Of the nearly 300 MSP executives who converged on Las Vegas last week to tackle a wide range of issues, the most commonly repeated comment was the value of working with other MSPs.
In previous events, MSPs love to talk to one another, share ideas or have their own ideas validated. But only a minority of MSPs in years past have actually taken the time to explore real working relationships with their colleagues. Probably due to the economy, MSPs are being forced to look at new ways of expanding resources without access to capital or credit. Partnering witih other MSPs on service/help desk, sharing additional NOCs, on-site physical presence in new geographic regions, and access to service or vertical expertise are some of the more common ways MSPs can work together in a collaborative fashion.
Personally, I was really encouraged to see so many high level executives in the managed services industry get together and work together. Hopefully this is something that will not end when the economy turns around.
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When the economy turns around?
Maybe you know something I don't, but this economy is not going to turn around in the next 10 years. We have way too much debt and too little income to service it.
There is an unbelievable amount of private debt that that needs be "de-leveraged" over the next few years. The major money center banks are basically insolvent. Credit is being withdrawn from the market in massive amounts. Defaults on mortgages, commercial real estate loans, credit cards will continue for years. The BLS U6 measure of the unemployed, discouraged and under employed workers is at 17% or 26 million workers. One in four mortgages are "under water" and this number will rise as home values continue to fall despite massive federal efforts to re-inflate them. One in eight Americans is on food stamps (one in four children). The 50 states are looking at combined budget deficits of $350B projected over the next two years. Recovery? Recovery to what? Another cheap credit fueled bubble economy? I don't think so.
Small businesses will be financing their IT services out of their accounts receivable or barter. They will need to move their IT services into the cloud or they will go out of business. With fewer servers to "manage" in small businesses MSPs will find themselves looking for the next major play in IT, which is cloud computing. The time of the MSP has come and gone. Cooperative efforts among some MSPs may delay the inevitable but it isn't going to matter when all of the servers are in the cloud.
Partner Mentality = Alliance
Over the years I have taken advantage of my membership in the MSP Alliance in so many ways. The most effective use of my connections has been the partnerships, joint ventures, and relationships I have found in fellow members.
Members that are fierce competitors in there own segment of the industry are always looking for new ways to serve their customers, whether it is with new services, additional resources or expanding into new markets or verticals. Many times these members do not compete in the same region or territory and seldom are they a threat to your loyal customer base.
The way I look at it is an endless pool of talent with a common goal and code of ethics to draw from. I have always taken the word A l l i a n c e to heart and approached my customers without reservation, that I can draw from this impressive talent pool.
Need desktop expertise? Need an experienced firewall expert? Need a secure NOC for monitoring? Need a software tool or piece of hardware to accomplish something challenging in your architecture? Need fresh perspective on tackling a problem? Operating in a vacuum does not help your customers. Form an Alliance.
I'm so encouraged to see so many members embracing this way of getting things done for their customers. The momentum of the Alliance is impressive.
Use the MSPA
Mike - thanks for your kind remarks. I have found that a lot of members have used their membership in similar fashion and it has yielded many unforeseen benefits.