ChannelLife Australia logo
Industry insider news for Australia's technology resellers
Story image

Four ways MSPs can stay strong and profitable in 2020

By Contributor
Wed 7 Oct 2020
FYI, this story is more than a year old

Article by StorageCraft director for Asia Pacific Leo Lynch.

COVID-19 caught everyone by surprise in 2020 and changed the world as we know it. While remote access has been available for decades, the concept of an entire company’s workforce operating remotely has forced organisations—and their Managed Service Providers (MSPs)—to rethink the meaning of remote access, collaboration, and security.

The good news is that MSPs have been up to the task, playing a vital role in assisting organisations and their employees in getting up and running as quickly and seamlessly as possible. 

MSPs have made remote work happen, whether it was helping clients resolve bandwidth issues, set up laptops, ensure connectivity, or bolster security.

Indeed, the switch to widespread work from home has gone remarkably well. Employees have managed to remain as productive and collaborative as ever—and some employers have even discovered they can save money in the process.

In many cases, the switch helped accelerate digital transformation, with many organisations investing in new cloud applications that make it easier to work remotely.

While MSPs have done a great job, it has not been easy, and they now face new questions. How do they keep the ball rolling? How do they continue serving their customers and focus on customer acquisition?

The current environment is challenging for MSPs in terms of how they operate and stay profitable. The truth is that many MSPs will have to find new ways of operating. 

Most obviously, there will be a growing need to support a distributed workforce, which will require many MSPs to redesign their managed offerings and support their customers in more creative ways.

Given the significant impact of the evolving pandemic, there has been the inevitable loss of clients, especially those hardest hit by the crisis, such as customers in entertainment, retail, and travel industries. As a result, some MSPs have experienced a reduction in their workforce due to waning demand for their services.

The following are four tips for overcoming these challenges to grow stronger and stay profitable in this uncertain environment.
 

Embrace a recurring revenue model

Channel partners should offer more flexible service subscriptions to their customers. In today’s precarious economy, few companies are eager to pay for MSP services a year or two in advance - especially since many companies don’t know if they’ll still be in business a year or two from now.

Organisations want the latitude to turn essential services on and off as needed. In this environment, subscription services that deliver consistent revenue, feature easy integration and are aggressively priced will be the winners.

That makes monthly subscriptions more relevant and more in sync with today's environment. MSPs should look to providers that offer the most flexible pricing options. It will make life easier for MSPs and their customers by providing a more relevant setting to manage today's challenges.
 

Mitigate against future disasters

SMBs rely on outsourced technology providers to ensure their data and IT infrastructure are always available and accessible. They also expect a rapid response in the event of a data or business continuity vulnerability.

Once we rebound from the pandemic, there will still be plenty of other threats to address. At the top of the list is ransomware. 

MSPs that effectively manage the ransomware problem — and help their clients implement strategies around data backup and recovery — will be at a significant advantage.

Natural disasters such as bushfires and floods will continue to present a significant challenge to businesses, especially as climate change intensifies. MSPs need to have systems to help their clients protect and recover their data in an emergency.
 

Offer services geared toward the new normal

A remote-working environment requires different tools to manage remote workers and enable them to thrive - data backup and storage services, for example. Remote employees are working in unmanaged environments, and on new networks, so backup becomes more critical than ever. 

System glitches and downtime will be increasingly frequent in a remote-working environment. MSPs can effectively differentiate themselves by backing up data and promptly getting customers back online without hindering their productivity. 

Plus, by rolling out new data-recovery features, MSPs can better monetise the work-from-home trend.
 

Look for vendors that can be great business and technology partners

MSPs are under tremendous pressure to resolve complex customer problems while avoiding increased costs for the technical assistance needed to fix them. That’s why they should partner with vendors that help share the load and show they have skin in the game.

The most responsive vendors are currently extending 24/7 global channel support services to alleviate this problem for MSPs. This 24/7 support eases the added pressure that working from home places on MSPs while allowing them to extend their revenue potential without additional costs.

This year has required MSPs to adapt in ways they could never have imagined. Those that successfully adjust to the new normal will ultimately regain stability, stay operationally efficient, and increase profitability for many years.

Related stories
Top stories
Story image
Employment
Tech job moves - Forcepoint, Malwarebytes, SolarWinds & VMware
We round up all job appointments from May 13-20, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Vectra AI
Understanding the weight on security leader’s shoulders, and how to shift it
Millions of dollars of government funding and internal budgets are being funnelled into cybersecurity to build resilience against sophisticated threats, indicating how serious this issue has become.
Story image
Broadband
Telstra enters into new RSP agreement with Opticomm
Telstra has entered into an RSP agreement with Opticomm (A Uniti Group Limited subsidiary) to provide network fibre services to customers.
Story image
Ransomware
Alarming surge in Conti Ransomware Group activity - report
A new report has identified a 7.6 per cent increase in the number of vulnerabilities tied to ransomware in Q1 2022.
Story image
Nozomi Networks
Nozomi Networks, Siemens reveal software integration
Nozomi Networks and Siemens have extended their partnership by embedding Nozomi Networks’ software into the Siemens Scalance LPE local processing engine.
Story image
Lightspeed
Lightspeed launches all-in-one marketing platform in A/NZ
ECommerce provider, Lightspeed has launched a new all-in-one marketing solution, Lightspeed Marketing & Loyalty in Australia and New Zealand.
Story image
Gaming
Hands-on review: WD_Black SN770 NVMe SSD Game Drive
Western Digital expands its WD_Black range of NVMe solid-state drives with the WD_Black SN770 Game Drive.
Story image
Data Protection
Barracuda launches new capabilities for API Protection
"Every business needs this type of critical protection against API vulnerabilities and automated bot attacks," Barracuda says.
Story image
Remote Working
How zero trust and SD-WANs can support productive remote working
The way people connect with applications and data has changed, users are remotely accessing resources that could be stored anywhere from a corporate data center to the cloud.
Story image
Cybersecurity
Noname Security partners with Netpoleon to target API issues
Specialist API security firm Noname Security has appointed Netpoleon as its distributor in Australia and New Zealand.
Story image
Testing
Google and CSIRO use AI to help protect the Great Barrier Reef
Google has partnered with CSIRO in Australia to implement AI solutions that help protect the Great Barrier Reef.
Story image
Microsoft
New Relic enters multi-year partnership with Microsoft Azure
New Relic has announced a strategic partnership with Microsoft to help enterprises accelerate cloud migration and multi-cloud initiatives. 
Story image
Cybersecurity
Managed service providers: effective scoping to avoid costly vendor pitfalls
Managed security services are outsourced services focusing on the security and resilience of business networks.
Story image
Digital Transformation
Pluralsight and Ingram Micro Cloud team up on cloud initiative
Pluralsight has teamed with Ingram Micro Cloud to build upon cloud competence and maturity internally, and externally support partners’ capabilities.
Story image
Artificial Intelligence
SAS unveils AI experience to improve kids' batting abilities
SAS has created The Batting Lab, an interactive experience using AI, computer vision and IoT analytics to help kids improve their baseball and softball swings.
Story image
Remote Working
Australia’s remote workers face connectivity and security issues
SOTI's new report finds better video conferencing technology and improved security measures are top concerns for remote workers in Australia.
Story image
PaaS
New digital traffic light system to tackle construction defects
Smarter Defects Management launches its PaaS digital system and says it will revolutionise managing defects in the construction industry.
Story image
Ransomware
Cybersecurity starts with education
In 2021, 80% of Australian organisations responding to the Sophos State of Ransomware study reported being hit by ransomware. 
Story image
Cloud Security
Aqua Security createa unified scanner for cloud native security
“By integrating more cloud native scanning targets into Trivy, such as Kubernetes, we are simplifying cloud native security."
Story image
Artificial Intelligence
AI-based email security platform Abnormal Security valued at $4B
"A new breed of cybersecurity solutions that leverage AI is required to change the game and stop the rising threat of sophisticated and targeted email attacks."
Story image
ChildFund
ChildFund launches new campaign to protect children online
ChildFund says WEB Safe & Wise aims to protect children from sexual exploitation and abuse online while also empowering them to become digitally savvy. 
Story image
Mobility
Tyson Beckford partners with Element Case on new AppleWatch band
Celebrity Tyson Beckford has collaborated with STM Brands' Element Case brand to create a rugged new accessory.
Story image
Data solutions
South Australia state satellite makes significant progress
South Australia’s first state satellite has successfully completed the Critical Design Review (CDR), moving it closer to providing tangible data solutions.
Story image
Artificial Intelligence
SAS announces new products amid cloud portfolio success
Analytics and AI company SAS is deepening its broad industry portfolio with offerings that support life sciences, energy, and martech.
Story image
Manufacturing
HINDSITE wins Aerospace Xelerated Pitch Challenge with solution to support Boeing
Brisbane-based startup HINDSITE was the winner of the first ever Pitch Challenge organised by Aerospace Xelerated in partnership with Queensland XR Hub. 
Story image
Cybersecurity
The 'A-B-C' of effective application security
Software applications have been a key tool for businesses for decades, but the way they are designed and operated has changed during the past few years.
Story image
Cybersecurity
Infoblox's State of Security Report spotlights Australian remote work hazards
Attackers exploit weak WiFi, remote endpoints, and the cloud, costing 50% of organisations over $1.3 million in breach damages.
Story image
Digital Transformation
How to modernise legacy apps without compromising security
At a time when digital transformation has become central to business, even the most important applications come with a ‘use-by’ date.
Story image
Wireless
Hands-on review: Technics EAH-A800 Noise Cancelling Wireless Headphones
Designed in Osaka, Japan, these headphones just exude quality. They aren’t heavy, but they feel well built and solid.
Story image
trust
9/10 Aussies to stop spending if personal data compromised
"Based on the patterns we are seeing among Australian consumers, it is evident that trust in a brand is exceptionally important."
Story image
Fintech
Airwallex launches new bank feed integration with NetSuite
Airwallex has launched a new bank feed integration with NetSuite, developed in partnership with NetSuite solution partner, Onlineone.
Story image
Telstra
Telstra, Google and Accenture launch 5G AR experience for AFL
Telstra, Google and Accenture are developing a new 5G powered augmented reality (AR) experience at Melbourne's Marvel Stadium for the footy season.
Story image
Workato
Workato unveils enhancements to enterprise automation platform
"The extra layer of protection with EKM, zero-logging, and hourly key rotation gives customers a lot more visibility and control over more sensitive data."
Story image
Wireless
Cradlepoint expands its Cellular Intelligence capabilities
Cradlepoint has announced additional Cellular Intelligence capabilities with its NetCloud service.
Story image
Application Security
What are the DDoS attack trend predictions for 2022?
Mitigation and recovery are vital to ensuring brand reputation remains solid in the face of a Distributed Denial of Service (DDoS) attack and that business growth and innovation can continue.
Story image
Surveillance
Motorola Solutions acquires Videotec S.p.A for security portfolio
Motorola Solutions has acquired Italian ruggedised video security company Videotec S.p.A, along with its portfolio of highly versatile cameras.
Story image
Cybersecurity
BlackBerry offers Kaspersky replacement cybersecurity for the channel
BlackBerry advises that users of Kaspersky software in Australia and New Zealand undertake a rigorous risk analysis of their current security posture.
Story image
Alteryx
Decision Inc. Australia enters partnership with Alteryx
Independent data and analytics consultancy Decision Inc. Australia has partnered with automated analytics company Alteryx, expanding its offering to clients.
Story image
Application Performance Monitoring / APM
Why SolarWinds Partners will have big wins in 2022
We summarise the key recent changes that the monitoring software vendor has made to accelerate its channel business.
Story image
Artificial Intelligence
SAS launches human-focused responsible innovation initiative
SAS has launched a responsible innovation initiative, furthering its commitment to equity and putting people first.
Story image
Gaming
PNY launches XLR8 Gaming EPIX memory products in A/NZ
PNY has launched its XLR8 Gaming EPIC-X RGB™ DDR4 Silver 3200MHz and 3600MHz memory products in Australia and New Zealand.
Story image
Sift
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Ransomware
A third of companies paying ransom don’t recover data - report
Veeam's report finds 76% of businesses who are victims of cyberattacks paid the ransom to recover data, but a third were still unable to get their information back.
Story image
Amazon Web Services / AWS
RedShield leverages AWS to scale cybersecurity services
"Working with AWS gives RedShield the ability to mitigate significant application layer DDoS attacks, helping leaders adopt best practices and security architectures."