As the tide shifts, so must the swimmer. And in the technology industry, the tide shifts constantly.
With the ascendancy of SaaS, the tide shifted dramatically for the Managed Service Provider (MSP).
They once enjoyed exclusive on-premises customer relationships offering their customers a host of services and support, hardware, software, network, application, infrastructure and security solutions.
They still do that, but with an important distinction. With the success of the SaaS business model, MSPs risk losing direct control of their customers. And that implies extinction.
"MSPs fulfil a significant need for businesses for their IT requirements. They are trusted advisors," said Scott Anderson, Chief Marketing Officer at Intermedia. "But the SaaS providers usually want to bypass the MSP and own the customer relationship," he said.
That leaves MSPs with difficult choices. They can exit the business entirely or continue like they always did. The latter option is hardly an option because it portends the eventual end of their business.
Have Your Cake While Being a Successful Reseller
Where there's a will, there's a way to morph, shift and adapt. And that means MSPs still have options to retain and gain customers in a SaaS world.
"When the MSP adopts a reseller model, he gets the best of both worlds," Anderson said. "Reselling a SaaS platform creates rapid top-line revenue while retaining the customer. They buy it wholesale and control the bundling and pricing. It's a win-win," he explained.
White Labels Keep It Real
Instead of relying solely on recognized SaaS brands, consider a white-label SaaS approach. White-label arrangements allow MSPs to wrap their brand name around their SaaS offering, which optimizes profits while enhancing their unique technical brand image as a total solutions supplier.
