By Grady Gausman, Product Marketing & Analyst Relations Manager, BitTitan

Managed service providers have seen their industry landscape shift dramatically in 2020. The coronavirus pandemic has ushered in a new reality, forcing companies around the world to pivot to remote operations. Consequently, many companies have turned to MSPs in their hour of need.

As MSPs deliver managed services that enable their customers to maintain business continuity, there is a continued appetite among MSPs to adopt a competitive pricing model and provide the best service package. A recent survey, commissioned by BitTitan, revealed key insights into how successful MSPs are generating revenue. Below is a behind-the scenes look into the market drivers of their success.

Cloud is king

With the transition to the cloud, more services, security and software are becoming cloud-based. The survey revealed the most profitable services from MSPs include SaaS, networking, cybersecurity and business continuity. MSPs also indicated that their most critical investments include cybersecurity, information security and disaster recovery. All of these have grown in importance as people are now working remotely, indicating there remains much opportunity for MSPs.

To ensure they're delivering the right products and cloud-based services, MPSs are taking steps to make their offerings stand out in the marketplace. Large MSPs are beginning to invest in new skills and processes such as cloud services delivery platforms, which will benefit their business down the line. They're also starting to invest in training and education around cloud-based business processes. Small MSPs are making similar investments-but at slightly lower rates.

Address marketing pain points

A number of MSPs expressed they encounter the same pain points regardless of their size. The survey revealed that design and pricing of service offerings is one area in which many small and large MSPs struggle. In addition, marketing and sales remain a major challenge for many MSPs, indicating that these areas require more investment and support. Because these companies are hard-pressed for developing business leads and often run by people who are more experienced in tech, areas like sales and marketing don't come as naturally and require a more concerted effort and training. For MSPs to get ahead of the competition, priority needs to be placed on further developing sales and marketing proficiencies.

Be ready to sell security

Security remains a paramount concern, and MSPs continually look to increase their offerings and expertise in this space. MSPs understand they need to protect their end users and close security gaps, particularly now as more workers and students have turned to remote options and devices. However, the survey identified a difference of approach to security offerings between small and large MSPs. For example, smaller MSPs tout increased sales in the areas of network security and endpoint security with standard, branded-security products. They are exploring opportunities to move upstream with more complex, higher-margin products. In contrast, larger partners are more likely to value areas such as security operations, threat hunting, application security, fraud protection, and other complex, higher-margin services.

Partner with vendors to drive profitability

Profitability drivers were also different among MSPs of different sizes. These drivers play a large role in how small and large partners make vendor choices. In general, large partners value selling training and sales support while smaller MSPs focus on program support and the vendor's ability to fit with their customers' businesses.

To strengthen their product and service offerings - with technical training, IP transfer and field support for higher-margin services - MSPs look to vendors for assistance. Knowing that vendors play a critical role in MSPs' success, there are a number of important characteristics that all MSPs look for in vendors. For example, if sales is an area where MSPs struggle, vendors have an opportunity to provide more support here. This could include pre-sales consultations, technical support or even onboarding. They should also complement team strengths and help your business achieve operational efficiency. Vendors must keep in mind what MSPs are looking for and clearly demonstrate exactly how they can provide value from day one.

Identify opportunities ahead

The current market landscape of COVID-19 presents a number of challenges-and opportunities-for MSPs. In an increasingly digital and cloud-based world, the services provided by MSPs are needed now more than ever. MSPs can differentiate themselves through a deep and committed understanding of their customers' businesses and by being proactive about helping their customers navigate remote work or learning realities. MSPs can firmly establish themselves as trusted partners, enable their customers to continue business operations, and ensure continued business growth.

To read the full survey results, visit the BitTitan website.

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About the Author

Grady Gausman is a Product Marketing & Analyst Relations Manager at BitTitan, where he works closely with sales, marketing and product management teams. He specializes in the areas of SaaS, cloud technologies, product strategy and go-to-market initiatives.