Can MSPs succeed in a SaaS environment?
As the tide changes, so does the swimmer. And in the tech industry, the tide is constantly changing. With the rise of SaaS, the MSP (Managed Service Provider) landscape has changed dramatically.
They once enjoyed exclusive local customer relationships, offering a wide range of services and support, hardware, software, networks, applications, infrastructure and security solutions to their customers. They still do, but with an important difference. Due to the success of the SaaS business model, MSPs risk losing direct control over their customers. And that points to extinction.
MSPs meet the big IT needs of businesses. They are a trusted advisor But SaaS providers generally want to bypass the MSP and have a customer relationship. This leaves MSPs with difficult choices. They can shut down the business entirely or carry on as usual. The latter option is hardly possible, because it marks the end of their business.
When an MSP adopts a reseller model, they get the best of both worlds. Upselling a SaaS platform creates quick top-line revenue while retaining the customer. They buy it in bulk and control the package and price. It's a win-win.
White labels Keep It Real
Instead of relying only on well-known SaaS brands, consider a white-label SaaS approach. White Label agreements allow MSPs to co-brand their SaaS offering, optimising revenue and enhancing their unique tech brand image as a total solutions provider.
MSP as a Reseller
The MSP reseller model unlocks doors to new opportunities.
1. It retain existing customers with added SaaS benefits.
2. Increase business flexibility trust and strengthen the customer relationship at the same time.
3. Expands to other areas such as contact centre unified communications, manage print security, networks or general IT issues.
4. It increases the value of the company's assets through its strong customer base.
Intermedia is a cloud communications company that offers a single product line for voice, video conferencing, email, file management, information security and compliance. It aims to help businesses better connect, reducing the need to rely on multiple service providers. The company offers monthly contract options. Its products serve more than 130,000 companies in the healthcare, legal, financial, automotive and retail industries.
Where there's a will, there's an opportunity to change, change and adapt. And that means MSPs still have opportunities to retain and acquire customers in the SaaS world.