Monthly Archives: July 2017

MSP programJoining an MSP program can work wonders with channel partners’ balance sheets, as our friends at Trend Micro explain in this blog!

We’re always keen to share compelling insight from our vendor partners, and Trend Micro have nailed it with their blog Five reasons you need to join an MSP program….today!

 So with thanks to the guys at Trend, we’ve condensed it below. (And if you like what you see, come and talk to us about the MSP solutions we offer!)

Five reasons you need to join an MSP program… today!

1. Better margins

It is not uncommon for our partners to earn in excess of 100% profit margin on the security solutions they are providing to their customers as part of their managed service agreements, which is probably a much higher percentage than what you are earning now if you are just buying annual licenses when your customers’ licenses expire.

Let me explain how in two words: aggregate pricing. Put simply, MSP programs typically offer pricing on an aggregate seat count basis, which means that you are paying for licenses based on the total number of clients you currently manage. This can be a significant difference as business grows and you move in to cheaper and cheaper seat bands. To figure out just how much margin you are missing out on ask your vendor how much it costs per seat in the lowest price band (typically five to 25 seats) vs. the cost per seat in the price band that represents your entire customer base. That number is the extra margin you are missing out on.

2. Predictable revenue stream

Compared to the feast-or-famine nature of revenue in a break-fix business model, predictability is one of the primary benefits of being a managed service provider. Joining an MSP program helps you further streamline and predict both the revenue from your customers, as well as your service delivery costs.

This one is a bit of a twofer since you can more easily calculate revenue projections and do forecasting into the future. You can also calculate cost projections and get a much better understanding of the health and future growth potential of your business. The icing on the cake is that the value of your business increases as well as your revenue streams–a critical component of your exit strategy.

3. Multiple recurring revenue streams

The great thing about being an MSP is that you are forced to heavily focus on automation and repeatability since controlling costs directly impacts your bottom line. Once you’ve joined an MSP program, you will generally have the ability to create multiple recurring revenue streams if they have a broad product portfolio. Once you have created processes and trained your staff around the tools provided as part of the MSP program it’s very easy to “turn on” any additional products your vendor may offer across your entire customer base. This can be done in a very efficient and cost-effective manner, with each of these products representing an additional recurring revenue stream and more profit.

4. Moving from CapEx to OpEx

There may be some tax and accounting benefits to joining an MSP program and moving from purchasing annual licenses upfront for your customers to paying for licenses monthly or quarterly — or moving from CapEx to OpEx. The main benefit is the ability to recognize deductions completely in the current period vs. recognizing them over the useful life of an asset (that is, if you buy a three-year license and deduct it over those three years).

Disclaimer: We are a cybersecurity company, not tax experts. Therefore, we highly recommend discussing this with your accountant or tax professional to weigh the pros and cons and how it may affect your business specifically.

5. Elimination of renewals

Lastly, a good MSP program will give you complete control over license management and provisioning from a self-service portal. This allows you not only to provision licenses when you need them (think evening or weekend deployment when you forgot to place an order three days in advance), but also to eliminate all the hassles, complexity and costs associated with renewals. In essence, since you have complete control over the licenses, an expiration date is no longer necessary–you can simply cancel the license when you need to.

If you’ve never figured out what it costs you to track disparate expiration dates across your entire customer base for every product, to request quotes from your vendors, to create invoices for your customers, to follow-up on payments from your customers, and to submit payments to your vendors just to renew a product, then you probably should! Most partners we  meet who go through this exercise are shocked to find out they often lose money on smaller customers because they did not factor the costs of renewing into their pricing or business model.

Although there are so many more reasons to join an MSP program as soon as possible, these are our top five reasons you should be seriously considering becoming part of one…

Blue Solutions is a specialist security software distributor with many years’ experience in helping partners take their MSP security proposition to market. To talk to us about our range of MSP security solutions, get in touch.

Cloud SecurityCloud security is often as nebulous a term as the word ‘cloud’ suggests! We look into its various meanings and identify where it can add value to channel partners’ propositions.

Cloud security is one of those terms that has morphed rapidly to mean several different things in a very short time. Result? Confusion, more often than not.

Are we talking about security solutions delivered to users from the cloud? Or security around applications that live in the cloud (like Office 365)? Or security that’s targeted at businesses that make use of public cloud services like AWS?

You see the challenge. But actually, each of these is a valid scenario and a saleable cloud security solution. Here’s more info.

1. Security services delivered from the cloud

Your SME customer has few or no IT specialists in the organisation, no money to hire them, and nowhere to store servers. Where do they turn?

To the cloud, of course. Security products are delivered to them via the internet, as a service.

They can typically choose to pay only for what they use, on a monthly ‘rental’ (managed service, or MSP) model, so there are no prohibitive upfront costs.

Their security partner (you!) monitors their networks from a centralised console, makes technical adjustments, and implements patches and upgrades, but the user can retain some control over their security settings if they wish.

But what kind of security solutions can be delivered in this way? Many.

Hosted email security, for example, works with most hosted and on-premise email systems to protect what is stilll the primary route into organisations for most forms of malware and spam.

More comprehensive business security services solutions and cloud security solutions designed specifically for MSPs provide wider protection to end-users, and also enable partners to sell into organisations who have some on-premise systems, but don’t wish to overburden them by adding security software into them.

In this scenario, end-users can run everything else on-premise, but get their security from the cloud!

2. Security for applications that live in the cloud

Solutions like Office 365 have revolutionised office processes, with powerful tools delivered to end-users’ desktops straight from the cloud.

But although the delivery mechanisms for these applications are secure, the content delivered by the applications can still contain threats that the application’s own in-built security can’t detect, as we explored in this cloud apps post a while ago.

Plugging these holes is still a big opportunity for resellers and other security channel partners – and the cloud app security solutions that can help them deliver this critical service are already ‘out there’.

3. Security for public cloud services

SaaS, IaaS, PaaS – businesses’ ability to build their entire proposition on a public cloud provider is no longer the preserve of large enterprises.

In fact, Forbes has ascribed the growth of AWS, for example, to their “Reaching out to all kinds of customers – startups, SMEs and big companies”.

It is this that has driven, in turn, a new kind of security need amongst end-users, as we explained not so long ago in this post - namely, the ability to spin up an AWS virtual server and know that server will immediately be protected by security software that has been specifically designed from the ground up for virtual environments.

We had a bit of fun defining these virtualised must-haves in this security opinion paper recently, but the message is deadly serious: if end-users are building a business on public cloud, and relying on virtual servers, security partners need to be able to reassure them that they can secure it!

Cloud security – evolving meanings, evolving opportunities

As the cloud billows ever more energetically within businesses’ operations, it drives the security agenda in many different directions at once. Cloud security is coming at us from many different angles, and is morphing into multiple meanings.

It’s a wise security partner who has got a handle on them all – and knows the security solutions that play strongest to each definition.