ConnectWise Partner Summit – What I’d like to know..

Events
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ConnectWise Partner Summit starts in a few days and it’s one of the biggest MSP-centric events of the year that brings together all walks of IT life.

Last year the vibe was very positive, attendees were excited and everyone was “trying to move my clients to managed services” but since then we’ve had a catastrophic collapse of the banking industry, something damn near a stock market crash, record streak of unemployment growth and a slowdown of all measurable economic growth indicators.

Looking over the numbers that we track, pure play MSP’s have been hit the hardest. They led the pack in the percentage of closed shops and they were overwhelmingly the ones that lost the largest number of seats.

In the same time span, OWN has had an all time record growth in accounts, revenues and profits (unfortunately we’ve also had to do a lot of collections and longer DSO as economy spares no one). Today is our biggest $ day, ever. Our partners at MSP University, ConnectWise, Autotask, CharTec have also posted record numbers and the MSP solution provider presence at conferences and events is bigger than it’s ever been.

What Vlad would like to know is….

It’s obvious that the only people making significant money in the MSP industry are the software and outsourcing companies providing managed service providers with services that they use to manage end customers. MSPs aren’t doing so hot. Some are even losing out to their suppliers that compete for MSP business, such as Dell.

With the space getting crowded and the deliverable/value very difficult to differentiate and distinguish between MSPs.. which other lines of business are MSPs going into to actually generate profit growth?

So where is the money at? Let me know, we’ll have a booth at both HTG and ConnectWise events next week, would love to hear some really good MSP stories and ideas for a change.

2 Responses to ConnectWise Partner Summit – What I’d like to know..

  1. Mike says:

    I really think that the problem with profit and growth in the MSP area is showing the value to the small clients. For instance, the supplier we use says you will pay for X machines minimum. While it helps them deffer their costs, for clients with under X it becomes a case of not being able to see a value in it.
    Now adding on items such as true BDR setups with virtualization of servers can bring value in, but the costs again tend to be a bit on the large size for a lot of companies, especially in this economy.
    I tend to rely on the old school thinking to bring in the extra growth and profit needed (full on consulting) to keep my job. I would prefer to focus on MSP, but its just a real tough position out there to succeed in.

  2. vlad says:

    You hit the nail on the head there, it’s tough selling when people can’t determine the value.

    And if the business goes on even after the service is cancelled then it’s really a tough game trying to explain the other billion things that were done to bring the network to the state where it just works and why they signed the MSP agreement in the first place.

    But that goes for every business, know what you’re selling and know what the user is buying. And if you can’t agree on it then it’s just a matter of time.

    -Vlad

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