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

How to achieve your monthly recurring revenue goals

By Contributor
Wed 29 Jun 2022

Article by BitTitan Asia Pacific director Brad Rosairo.

Monthly recurring revenue (MRR) is the ultimate goal, the most important issue on which anyone in the IT channel should focus.

As the developer of a comprehensive migration toolset for the complete MSP, my company aids the service provider who goes far beyond monitoring and actioning alerts to complete administration and proactive management of customer networks.

We only succeed when MSPs make money.

Thousands have expanded their businesses dramatically by offering their customers certainty that their data, email, documents and all other migrations are complete and accurate when moving from on-premises to

Microsoft Office 365 environments. Beyond this, they provide the training and ongoing support required to keep users productive.

So let’s examine how MRR works, then explore the services customers need in assessing their network’s current state, data assets, user communities, and steps for determining their future state.

They will need help selecting their preferred Office 365 plan and the cloud subscriptions that support it, configuring those options, planning and designing their new cloud-based environments, and developing an initial project plan. All of these are fee-based, revenue-generating activities.

Executing the project plan will require various services, including ordering subscriptions, provisioning and configuring the services, upgrading client devices, migrating data and applications, integrating cloud providers’ services, and more.

Then address users, ensuring they are trained in using Office 365 and related applications effectively. Ensure they are comfortable with self-service portals and support options.

Fee-Paid Planning Services

It shouldn’t be so common to add value at no charge, yet resellers, cloud sellers, systems integrators and others still give away value-added services. These include initial system design, upfront consulting, planning, and order management.

My company’s most successful partners charge for these services. Their first offering to a new client provides the planning and design required before Office 365 or any other cloud service can be ordered.

Other fee-paying examples include initial consulting, application inventory and evaluation, solution architecture and cloud service selection, information architecture and capacity planning, security with cloud integration design, and application and environment transition planning.

Ultimately, customers want to enter their first day with their new services ready to produce.

Today’s cloud integrators combine hardware, software and services from various cloud providers. They are responsible for ensuring that services from multiple cloud providers interact well.

The integrator must provide customers with complete, superior solutions. Data must be backed up. The network and data must be secure and protected. Access must be secure and reliable. User collaboration must be facilitated, and applications must achieve desired functions and results.

An MSP’s value depends on awareness of shifts in the cloud services market, its impact on customers, and recommendations for their business.

Growing Revenue on Migration and Deployment

Most channel partners have had customers seek help after trying to deploy Office 365 themselves. Some find many cloud services challenging to implement. They need expert help since many find provisioning and deployment challenging to configure IP addresses, DNS servers and other internet services.

Data migration is even more challenging. A project might be a simple cutover with a migration app or require tons of conversion, re-mapping and account manipulations. Again, a customer should be completely ready to use the new services on day one.

MSPs can’t remain reactive. This requires confirming the functionality of every user device, plus the preparedness of every user. Training on the applications, the platform, best security practices, and self-service portals should be completed before rollout.

Services that should be incorporated into a complete program during the transition include user transition training, cloud service provisioning, email system migration, email archiving, data migration, and user deployment and rollout.

Initiating MRR

MRR is generated from Office 365 licences, data backup services, online security services, and all other cloud services that pay commissions.

Some of these services are familiar, such as help desk and field support. Most MSPs already offer network monitoring, including alerting and actioning of anomalies, monthly performance reporting, regular reviews, improvement recommendations, and more.

Every cloud-delivered service requires monitoring. We can almost guarantee that an SLA performance report from the provider will always match their invoice. Customers need an objective third party to keep those providers honest.

In the cloud, add capacity management. A significant value of cloud computing is that users pay only for what they use. But someone must keep an eye on the storage, memory, and processor services that users request to determine when they’ve finished using them and left them idle instead of releasing them.

Customers save unbelievable amounts of money when MSPs keep them from paying for services they never use. When MRR is generated from support services, an MSP keeps 100% of the profit but needs to calculate the fully loaded burden to compute a total cost. Even so, income will far exceed the subscription commissions. This is the MRR on which most want to focus: customer fees for ongoing support services.

After the launch of the subscription, these services include day zero transition support, user support program, network and cloud service QoS monitoring and management program, and capacity management.

Improve the Process

There is a danger in remaining completely reactive in executing a support agreement. The system alerts you, you determine a course of action, and then resolve the problem. But what if there are no problems?

There is danger in remaining reactive in the execution. The problem with having no service events is that the customer never sees the MSP in action. The issue emerges at renewal time when a customer asks why they should bother renewing.

So MSPs must be proactive and predictive, anticipating problems and working on them before they occur. When reporting on activities to a customer, the MSP becomes highly visible.

Go further. Offer new ideas, as requirements, projects, initiatives, users and applications require the system to adapt. Talk with users to understand their experiences with the systems in place and surface fresh ideas to better serve each customer.

The ability to renew support agreements and drive continuing MRR depends on remaining highly visible. Do more frequent reports, hold review meetings, or convert these from phone to video.

Construct a plan for managing each account more productively. Maintain a ‘keep-in-touch’ culture and discipline by requiring every account team to report regularly on their latest contacts.

Keep improving their environment, and the MSP will enjoy more MRR for many years to come.

Related stories
Top stories
Story image
Tech job moves
Tech job moves - Cohesity, Equinix, IDC, Proofpoint & Xero
We round up all job appointments from July 29 - August 5, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
10 Minute IT Jams
Video: 10 Minute IT Jams - An update from Heidrick & Struggles
Graham Kittle joins us today to discuss how the company is helping organisations bring about change within their business.
Story image
Inde
Exclusive: Inde provides innovative solutions across the tech sector
Inde likes to call its approach the 'power of the collective', which essentially means that if a client approaches the company with a problem, they'll get the team's collective insight to help drive the best outcome.
Story image
Tablets & laptops
Hands-on review: Xencelabs Graphic Display Tablet
Xencelabs seemed to show up out of nowhere on the market. I had no idea who they were or what they were about, but I was very intrigued.
Story image
Tablets & laptops
Chromebook and tablet shipments see another rapid decline for the year
According to research from Canalys PC Analysis, Chromebook and tablet shipments have fallen for the fourth quarter in a row for Q2 of 2022.
Story image
i-PRO
VisualCortex and i-PRO partner for enhanced APAC deployments
VisualCortex and i-PRO have partnered to facilitate enterprise-wide Computer Vision technology deployments in APAC.
Story image
Artificial Intelligence
Runecast's award-winning platform future-proofs businesses
Runecast provides both security and operations teams with what a few industry experts have called a 'must-have' solution.
Story image
Partner awards
Vertiv recognises outstanding 2021 A/NZ channel partners
Vertiv has recognised the exceptional contributions that its Australia and New Zealand channel partners made to its IT and mechanical and electrical (M&E) businesses in 2021.
Story image
Cybersecurity
Optic Security Group on Australia recruitment drive
Trans-Tasman security integrator looks to meet the twin challenges of high client project demand tight & labour market supply with new opportunities.
Story image
Wireless
Hands-on review: James Donkey RS4 Knight Wireless Gaming Keyboard
I have always liked mechanical keyboards, and this is no exception. I find the action much easier to use than the modern keyboards with limited travel.
Story image
Data Protection
Video: 10 Minute IT Jams - An update from SearchInform
Alexey Pinchuk joins us today to discuss the role the company plays in helping organisations manage risk and provide better security outcomes.
Story image
Security vulnerabilities
Flashpoint says vulnerability disclosure ‘highly volatile’
Flashpoint has released The State of Vulnerability Intelligence: 2022 Midyear Edition, finding that the current state of the vulnerability disclosure landscape is ‘highly volatile’.
Wiise
Discover why cloud ERP is central to a growing business' tech stack. Sign up now for free.
Link image
Story image
CRM
Forrester names Pega a Leader in CRM Solutions 2022 report
Forrester Research has named Pega a Leader among 11 competitors in The Forrester Wave: Core CRM Solutions, Q3 2022 report.
Story image
Hybrid Cloud
The essential guide to digital transformation by SolarWinds
Digital transformation is a buzzword thrown around all the time by companies, but what does it actually mean and why is it important? SolarWinds breaks it down.
Story image
Artificial Intelligence
Why smarter healthcare depends on data and automation
The pandemic has acted as a fierce catalyst for change. It’s strong-armed industries across the globe to embrace a world of new. Nowhere is that more evident than in healthcare.
Story image
Product Management
TeamViewer and Siemens to innovate product lifecycle space with AR
TeamViewer's new partnership with Siemens Digital Industries Software to bring the power of TeamViewer's AR platform, Frontline, to Siemen Teamcenter software.
Story image
BAI Communications Australia
BAI Communications to help improve mobile coverage across regional NSW
Deputy Premier and Minister for Regional NSW Paul Toole said regional communities deserve reliable and affordable mobile services.
Story image
SAP
Microsoft unveils two new security products to help reduce attack surfaces
The products are set to give companies deeper insights into threat actor activity and help them successfully navigate the changing threat landscape.
Story image
Gaming
Hands-on review: SteelSeries Apex Pro Mini Keyboard
SteelSeries has taken the design of its range of Apex keyboards to create a smaller version, the Apex Pro Mini. Techday’s Darren Price checks it out.
Story image
Gaming
Logitech G’s new Aurora collection looks to help change gaming stereotypes
The company’s new Aurora collection is designed to be gender inclusive, not gender exclusive, addressing the needs and wants of women gamers while also still appealing to a wider general audience.
Story image
Malware
Nozomi Networks Labs identifies impacts on 2022 threat landscape
Nozomi Networks’ latest research finds that wiper malware, IoT botnet activity, and the Russia/Ukraine war have had the biggest impact on the threat landscape in 2022 so far.
Story image
Sustainability
Green hydrogen company Hysata raises AUD $42.5 million
Global investors are supporting Hysata's hydrogen electrolyser technology as the organisation closes its oversubscribed Series A funding round of AUD $42.5 million. 
Story image
Phishing
Phishing, software vulnerabilities cause 70% of cyber incidents
The heavy use of software vulnerabilities matches the opportunistic behaviour of threat actors who scour the internet for vulnerabilities and weak points.
Story image
Cybersecurity
More than a fifth of cybersecurity teams ban the use of public WiFi
Verizon’s fifth annual Mobile Security Index report has revealed a continued rise in significant cyberattacks in the last year involving a mobile/IoT device.
Story image
Mobile Device Management / MDM
Claroty's Team82 uncovers two vulnerabilities in FileWave’s MDM system
Claroty’s research arm (Team82) has uncovered and disclosed two critical vulnerabilities in FileWave’s Mobile Device Management (MDM) system.
Story image
Cheetah Digital
Privacy, data ethics and the ‘seismic shift’ in consumer trust
Aussie consumers have low levels of trust for advertising, but will pay more to purchase from a trusted brand, a new report from Cheetah Digital reveals.
Story image
Printers
Comedy legend Jimeoin fronts Epson advertising campaign in NZ and Australia
According to Epson the company’s EcoTank models now account for 74% of all printers sold in the category in New Zealand, alone.
Story image
Wireless
Wave Audio spices up portfolio with first ever party speaker
Australian-based pioneers Wave Audio are enhancing their extensive range of groundbreaking new audio products by adding one of the most versatile speakers on the market to their growing portfolio.
Story image
Infrastructure
Rimini Street announces new suite of security solutions for enterprises
Rimini Street has announced the launch of Rimini Protect, a new suite of security solutions set to provide a more comprehensive layer of security.
Story image
Check Point
Ransomware now impacts 1 out of 40 organisations a week
Retailers and the wholesale sector saw the largest spike in ransomware attacks, with an alarming increase of 182%.
Story image
Appointments
Tech job moves - Checkmarx, Kinly, Syniti, Trellix & WalkMe
We round up all job appointments from July 22-28, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Phishing
Top universities lagging on basic cybersecurity - report
Universities in Australia, the US and the UK are lagging on basic cybersecurity measures, creating higher risks of email-based impersonation attacks.
Story image
Digital Transformation
Macquarie Telecom rolls out SD-WAN services for mycar Tyre & Auto
Macquarie Telecom says it has rolled out NBN and SD-WAN services to more than 270 mycar Tyre & Auto stores across Australia. 
Story image
Microsoft
SaaS sector in NZ thriving as a result of trans -Tasman partnerships
New Zealand's Software-as-a-Service (SaaS) sector is on track to be the biggest contributor to GDP this year, generating more than NZD$20 billion for the New Zealand economy.
Story image
Biometrics
AU biometric security company achieves B Corp cert
Australian biometric security firm Daltrey has announced it has become the first cybersecurity vendor in AU to achieve the B Corp certification.
Story image
Compliance
Why security needs to shape your journey to the cloud
It's estimated that 80% of workloads could be in the cloud in the next few years. How can you make all that data secure?
Story image
Identity and Access Management
Pitney Bowes launches rebranded management offering in A/NZ
Pitney Bowes has launched Smart Access Management (SAM), its rebranded digital visitor and contractor management offering in Australia and New Zealand.
Story image
Sustainability
Phronesis Security achieves B-Corp certified status
Phronesis Security has become the first cyber security company in Australia to achieve the coveted B Corp certification, having been certified since June 2022. 
Story image
Wireless
Wave Audio delivers ultimate immersion with new wireless earbuds
Wave Audio, one of Australia's best new audio brands, has recently released a set of landmark noise-cancelling true wireless earbuds, the Immersive Pro.
Story image
SAP
OutSystems joins SAP PartnerEdge program, integrates solutions
OutSystems has become an official member of the SAP PartnerEdge program. This will make it easier for other businesses within the SAP ecosystem to discover and connect with OutSystems.
Story image
Data
Consumers will stop doing business over data practices
“Data privacy remains a concern for consumers when it comes to sharing their information with an online retailer with an unclear view of privacy laws."