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Technology Success: The next
MSP business modelPresented by Gary Pica
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Copyright 2013 TruMethods, LLC
On today’s Webinar
Presented By:
Gary Pica
President, TruMethods
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Free TruMethods training video
Becoming a
Technology Success Provider
Hand me your business card
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Today’s MSP Market
• Crowded
• More mature
• More technology that is more affordable
• Price can become a factor
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The Result of Market Conditions
• Many MSP’s struggle with MRR sales
• AISP too low
• Average profit margins are flat
• Low leverage
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IT Solutions Provider
business model evolution
• The ITSP business model is always evolving
• Every decade or so a new shift begins
• Its time for the next evolution
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What signals the next evolution?
• Market maturation
• Commoditization
• Average provider profit margins
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• Technology advanced
• More complicated
• Internet growth
• Global economy
• Software shift to cloud
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Hourly Service: Fix and replace technology
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• Cloud applications
• Virtual environment
• Mobile work force
• Security and compliance requirements
• MSP model acceptance
• MSP market maturity
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MSP Practice: Manage technology
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The Next Evolution
• Roles and process aimed at the business results of
technology and technology decisions
• The focus is your customers business results
leveraging technology
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Technology Success Practice
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Hourly Service: Fix and replace technology
MSP Practice: Manage technology
Technology Success Practice
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• Creating “separation” within the
MSP model is no longer enough
• We need to separate from the MSP model
• World Class is built on top of MSP
• It’s time to move up the Value Stack!
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MSP Service Delivery Areas
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SupportCentralized
ServicesProfessional
Services
vCIO
(vCO)
• Current MSP service delivery areas
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Low
Perceived
Value
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SupportCentralized
ServicesProfessional
ServicesTechnology Alignment
Strategy Roadmap
Technology
Success
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Would you and your customers
benefit from a greater degree of
technical standardization?
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Technology Alignment vCIO
Technology Success Practice
StandardsTechnicalAlignment
BusinessImpact
ClientStrategy
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Your client’salignment against
your standards
Standards
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Standards
• Backup
• Windows Servers
• Anti-Virus
• Desktops
• Power Management
• Wireless Access
• Patch Management
• Firewalls
• Routers
• Switches
• LOB Applications
• Cloud Services
• Disaster Recovery
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Standards
• Example: Password Policy
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TruMethods Provided Standards
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• National Institute of Standards and
Technology (NIST)
– Security and Privacy Federal systems 800-171
– Protecting controlled unclassified info. SP 800-53
– Cyber Security Framework (Rev 1)
• Health Insurance Portability and
Accountability (HIPAA)
– Administrative, Physical, and Technical Safegaurds
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TruMethods Provided Standards
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• International Organization of Standards (ISO)
– ISO/IEC 27001:2013
• Center for Internet Security
– Critical Security Controls for Effective Cyber
Defense 6.1
• Payment Card Industry Data and Security
Standards (PCI DSS) 3.2
– Self assessment questionnaire A
– Self assessment questionnaire C
– Self assessment questionnaire D service providers
– Self assessment questionnaire D Merchants
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Technical Alignment
• Don’t leave room
for interpretation
– Yes or No
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Technology Success Provider
• Technical to business relationship
• Business Strategy
• Business goals, challenges, risks,
vision, core values, competition,
competitive advantage, market position,
margins…
• Technical Alignment and Business
Impact are the foundation
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Business Impact
• How could
misalignments
affect their
business?
• What do we
recommend?
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Low
Perceived
Value
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SupportCentralized
ServicesProfessional
ServicesTechnology Alignment
Strategy Roadmap
Technology
Success
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The Value Stack
Budget
Strategy
Impact
Alignment
MSP
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Technology
Success
Technology Success Provider
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Value Determines Price
ExampleAvg.
Seats
Avg.
AISP
Avg.
MRR
MRR with
50 clientsSeats
Right
Customers-
Right price20 $150 $3,000 $150,000 1000
Right
Customers-
Wrong Price20 $100 $2,000 $100,000 1000
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What are the reasons clients do
business with you?
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Sales Separation
Current process
Their results
Our results
Technology Success
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Three things in our bag…
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Centralized Services
Reactive Support
Technology Alignment
vCIO
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Technology Success Provider
• Build stronger business relationships
• Increase the value of your service offering
• Drive down reactive noise
• Sell more MRR at a higher prices
• Increase profit margins
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Training Software
Why TruMethods
• myITprocess is a proven Framework to build
your Technology Success Practice
• Over 200 hours of role based training content
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