How MSPs can Generate New Revenue from Performance Monitoring
Managed Service Providers (MSPs) have two options for combatting margin pressures:
- Drive costs out of their operations
- Increase revenue through new business or upsell opportunities
While cost reduction remains a critical activity, let’s focus on the second option -- increasing revenue.
Candidly speaking, many MSPs leave money on the table when it comes to billable performance monitoring services. They may have a monitoring platform with tremendous capabilities at their disposal. Yet, they struggle to find ways to monetize those capabilities and make them an attractive part of their service catalog.
In a market where MSPs tend to focus on fault management, strategic organizations have a window of opportunity. But they must show customers that performance monitoring provides more than just reactive services. How about capacity reports for resource utilization planning, or detailed traffic analysis with flow technologies?
Consider the chart below, which segments billable monitoring services into three tiers: Silver, Gold, and Platinum.
A tiered service offering such as this allows MSPs to serve the performance monitoring needs of two distinct customers:
- Those who lack internal IT resources and want to simply offload IT risk to an MSP
- Those who require more advanced solutions and want to find outside expertise to address complex challenges with infrastructure optimization
MSPs, for their part, are always on the lookout for new ways to generate revenue. One option is to deploy a performance monitoring platform that has a wide range of capabilities, reduces administrative work, and allows for rapid expansion. Performance monitoring can not only help MSPs reduce cost per customer, but also create opportunities for new revenue streams.
To learn more, download our whitepaper, “How Performance Monitoring Tools Enable MSPs to Create New Revenue Streams.” I’ll bet it spurs some ideas on how your company can combat low-cost competitors.