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How do MSP’s survive in a industry characterized by me-too products and frequent price cuts?

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Sep, 2016


All MSP’s need to work very smart in order to avoid commoditization and the best approach here is to maneuver price competition the right way. In fact, commoditization is seen as a major threat in the MSP industry because new players will always try to go lower. This will encourage the industry to get commoditized and that’s bad for business.

Sure!, having MSP monetization created the right way and dealing with the vendor management efficiently is the right way to do it.You should never try to justify the fees that you have, instead you have to focus on further expanding the current product offerings. This helps you improve automation and it will also lower the operational complexities. It can be very tricky to do so properly and with amazing results, so it all comes down to you to have a stellar attention to detail and a good approach to make the experience worth it in the end.

Real prices are starting to get lower and lower due to low quality MSP’s and their monetization which is not good at all. You have to do all you can in order to maintain a true focus on results and unfortunately the price wars in the industry are not very good at all.

As we stated earlier, the commoditization is killing the industry because it creates discrepancies that won’t really deliver a good set of results in the end. You have to focus on quality and a good attention to detail otherwise the experience will not be as good and as refined as you want it to be.

Traditional MSP providers should never justify their fees but unfortunately such an issue does tend to appear and they are basically forced by the others to showcase why these feels are larger. Recently, the prices managed to fall dramatically. The reason behind that is the fact that cloud services are getting more and more powerful and they are constantly lowering the prices which is very bad to say the least.

There are some MSP’s that do not compete on price and instead they focus more on the service quality and the value that they provide. But unfortunately that can’t be done all the time. With so many offerings on the market clients are always trying to get better and better results for the smallest amount of money that they can. It’s a challenging thing for sure, one that does bring in front an immense value and that’s what matters the most in the end.

Product portfolio:

In order for a MSP to stay competitive it has to expand the RMM as well as the offerings. They have to include the cloud and feature as many great results as possible and do the smart bundling as per the customer needs in order to generate a great user experience at the end of the day.

Cloud Strategy:

Combining the cloud vendor management with on-premise solutions can be a very good idea. Then there’s also the fact that a company can also offer a hybrid version as well. This should combine the two versions into a single, more reliable and professional one that would help companies obtain the user experience they want. That’s what most MSPs don’t have right now when it comes to monetization, and that is diversity.

Diversity is necessary if you want to take the user experience to new heights and while it might not sound like a mandatory thing at first, it really is very important so keep that in mind the best way you can.

Streamlining the process:

Aside from that you also have to focus on other improvements. You will need to improve the facility efficiency with help from automation or any other similar tool. That’s what it will help you obtain great results and it all comes down to you to focus on a very good user experience. Remember, automating a MSP will help you obtain a great ROI even if it might impose a few challevalue economicsnges and pricing issues, but you have to do that if you want to remain competitive in the online world. Plus, you will also have to focus the best way you can on things such as high value services.

Value Economics:


If you have high value services which are delivered in very high volume and with great efficiency then the outcome will be great and vendor management will be performed the right way for sure. Never refrain from investing into your services and making them deliver a very high value because that’s what matters the most at the end of the day. A good focus on efficiency will always pay off so you should check that out as it will help your business a lot.


Doing the drag and drop automation will help you deliver a much better operational efficiency. As you can expect, this is monetization key and it will helps you acquire a very good value with incredible results at the end of the day. If you have MSP automation you can really get that competitive edge that you want and in the end the experience will be well worth it for sure which is what matters the most.

You have to work as hard as you can in order to generate a good operational boost so just check that out and you will not have a problem in the end.

So, as you can see, MSPs have to focus on their pricing very well if they want efficiency and great experiences. It will definitely be a major challenge but with a good attention to detail the outcome can be well worth it. remember, it’s all about delivering the results that users want and if you do that then everything will be a lot better. Just try to figure out the user demands and address them the best way you can. It will be a challenge at first but with a good focus on results the outcome can be well worth it for all MSPs that engage in proper monetization and vendor management!

By : Vishal Pokala

Vishal Pokala is The Marketing Research & Strategic Manager of SURE! (a Magnaquest product). SURE! is an internationally acclaimed player in comprehensive end-to-end Subscription Business Solutions for PayTV, Broadband and Cloud Computing businesses – through deployment of Metered Billing, CRM, Service Fulfillment, Value-Added Services, and Managed Services.

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