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6 Investments That Can Have a Big Impact on Your MSP Business

The work-from-home landscape has accelerated the digital transformation of businesses of all sizes, producing phenomenal results in the cloud technology market. Based on a recent report, Forrester expects the hypergrowth to continue as cloud technology powers recovery. They anticipate 35% growth in 2021, increasing the global technology market to $120 billion.

In addition to the increasing emphasis on the cloud, the IT channel is going through a transformation. As companies continue to rely more on cloud technology, they require additional solutions and services from their IT providers, evolving the MSP into a more consultative role. Small and medium-sized businesses (SMBs) who outsource most of their IT support are especially seeking the IT service providers’ help and advice when it comes to digital transformation. The shift in mindset is forcing MSPs to reevaluate their business models and adjust their approach to several processes. Fortunately, there is an opportunity in chaos.

The evolution currently impacting the IT industry presents an extraordinary opportunity for MSPs. Change produces new needs, creating additional solutions and increasing an MSP's impact and revenue. MSPs prepared and ready to adapt to the evolving market will experience excellent results and come out of the pandemic stronger than before. To do so, they must be strategic in their efforts and commit to investing in their company. Focusing on improving the following six key areas will enable substantial growth post-pandemic.

Enhance Your Services, Solutions Portfolios

A business’s migration to the cloud increases the need for services, including pre-sales consultation, post-sales implementation, and integration support. Therefore, cloud solutions create an excellent opportunity for MSPs to expand their work pipeline, add more margin, and service of work. According to a Channelnomics/Pax8 report, services margins range from 40% to 60%. MSPs who anticipate the new focus on services and prepare accordingly will realize tremendous results.

Much of the traditional hardware and software products used by clients and supported by their MSP can be growth catalysts. The associated services are a great place to start building a managed services practice. Network and security equipment require managed services, endpoint devices come with configuration and deployment services, and all hardware has some backup and cloud services involved. MSPs should promote their solutions through proper marketing and sales efforts to maximize the opportunity entirely. Additionally, any time a new service or product is added to the line card, educating, and training the organization is critical to their success. Services will be extremely advantageous for growth in the future, and the sooner MSPs incorporate them into their offerings, the quicker they can capitalize on the opportunity.

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