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Types of MSP models in play

In the era of Anything-as-a-Service, enterprises require service providers who are strategic partners and need to onboard those with capabilities to deliver end-to-end support. But with different MSP models currently in play, which is the best one to ensure both enterprise and MSP success?

MSPModels

Break /Fix

Break /Fix is a reactive approach to service management. A customer calls in when they are experiencing a problem, or they require an upgrade or installation. The service provider works on the issue until resolution and the customer is invoiced at a pre-negotiated rate. When the customer calls, their productivity is already suffering and generally, the service provider has limited personnel to manage issues. The inefficiencies created by cost-cutting measures are usually, but not always, a poor reflection on poor revenue performance. The vicious circle is experienced by both providers and their customers.

Many service providers have recognised that break /fix services are a thing of the past, and as technology has evolved so has the need to be technology-enabled to provide proactive management. However, many providers fail to make the change as revenue target pressures increase, resulting in the continuation of an untrue message of providing a “managed service” when they are in fact break /fix.

A La Carte

Customers select the services they need from the service provider’s portfolio to build their bespoke solution package. This customised packaging is an improvement from break/ fix however it often leads to operational issues due to the lack of integration between services. Customers can become overwhelmed with the choices available, which they may not fully understand, consequentially resulting in packages that don’t meet their needs.

Service providers are likely to spend more time in discussion with customers due to the individuality required during each engagement, as well as encounter problems with invoicing.

Bundled Managed Services

A completely outsourced IT department. When the service provider is completely responsible for their customer's infrastructure, taking a proactive approach to maintenance and management is essential if they wish to retain and grow a secure business partnership.

Downtime is limited as much as possible through 24/7 automated monitoring, alerting and reporting to reduce the mean time to repair and drive fault resolution before customers are impacted. Business costs for both the service provider and customer are reduced in the short and long term and the service provider can charge a premium price in return for a truly proactive “managed service”, taking full responsibility and mitigating risks to their customers business.

This is part one of a two-part blog series. Part two details the advantages of bundling Managed Services and why service providers should choose this model.