Why MSPs Are Moving to Standardized, Bundled Services | Total Securit Software

Selling and managing Microsoft 365 is a breeze for MSPs, but the profits that come from it aren't as compelling. For many MSPs, the solution is to offer additional software like total security software and services beyond Microsoft 365. 

However, a la carte offerings can add complexity, not to mention time and resources. For many MSPs, the answer is bundled services.

The explosive growth of Microsoft 365

Microsoft 365 was a popular software suite for businesses even before COVID-19 but saw 19 percent revenue growth in the three months ended June 30, 2020. MSPs were able to experience this firsthand and were in the unique position of having more than enough work at the beginning of the lockdown as customers were forced to set up home offices quickly.

Microsoft Teams recorded a daily high of 200 million meeting participants during this time. In the words of Microsoft CEO Satya Nadella, such growth represented "two years of digital transformation in two months".

Despite the growth of Microsoft 365, the sales increases at Microsoft cannot be compared with those of the MSPs. Profit margins are thin and the hours spent marketing, selling, and managing Microsoft 365 are long. MSPs want to benefit from the growth of Microsoft 365, but to significantly increase profit margins, their offerings need added value.

Service bundling for Microsoft 365

Bundling Microsoft 365 with complementary software and services does just that. Some MSPs get along well with à la carte services, for others they add complexity. Standardizing the offering simplifies the process for both MSPs and customers.

For MSPs, a standard offering that can be expanded to new customers and existing customer bases facilitates both sales, provisioning, and management. A standard offering could include Microsoft 365 as well as backup, recovery, and email security. In contrast to the à la carte model, this package and the associated providers would be standard in all areas.

This eliminates the need to sell each product and service individually to the customer; the MSP doesn't even have to specify exactly what is in the bundle. Positioning the service as an offer that contains a multitude of solutions and covers all of the customer's needs is much more convincing than the suggestion of purchasing five to seven individual à la carte solutions and services, which are then explained in detail that the customer is unlikely to fully understand anyway.

Customers turn to their MSPs to make IT decisions for them. If you put this burden on customers, you run the risk of making decisions based on cost alone. Choosing from an a la carte menu of products and services can be daunting, if not confusing. Think of it as a menu in a restaurant: With an extensive menu, it is difficult for the customer to make a decision; for restaurants, on the other hand, a large menu means that more products have to be transported and managed, which often leads to additional waste.

The admins also benefit from a standardized, bundled range of services. With the à la carte model, they have to master numerous software programs and systems. By downsizing, standardizing, and sticking to a few select solutions, admins have the opportunity to become real experts on these systems instead of just knowing them. This also helps the MSPs: fewer systems require fewer expert resources.

Create a bundle

The above example of a bundled service offering for Microsoft 365 includes backup, recovery, and email security, but MSPs can extend these services with additional offerings. Security offerings are particularly suitable for Microsoft 365 for two reasons. First, Microsoft is the most frequently impersonated brand in phishing attacks. Second, security is the primary driver of MSP sales growth. According to Kayesa's 2019 MSP Benchmark Survey, two-thirds of respondents reported increased revenue from managed security services, and 75 percent offered Microsoft 365 managed services.

When choosing software and services for your package, consider the resources you currently have and whether you have the experts at managing the software and services.

Complex solutions require time and resources, so solutions that require minimal intervention, are easy to implement and manage, are ideal for MSPs. Protegent360's Total Security Software for Microsoft 365 was developed with this in mind. Thanks to its API-based architecture, it fits perfectly into a bundle and does not require complex setup or configuration and no changes to the MX record. Also, built-in functions enable MSPs, such as B. Automatic correction and automated phishing awareness training to add value to your service offering without the additional costs for third-party platforms.