The network infrastructure needed to run the business comes under pressure because of the ever-increasing SMBs, who rely on the cloud. The first thing that stands to challenge this pressure is MSP.

FREMONT, CA: The World Bank Group commissioned a recent study, which estimates there are around 365-445 million small to midsize businesses (SMBs) emerging around the world. These businesses need managed service providers (MSPs) to outsource their IT services. The study also reveals that 75 percent of the IT infrastructure of these SMBs is expected to move to the cloud in the next three years. The network infrastructure needed to run the business comes under pressure because of these ever-increasing SMBs, who rely on the cloud. The first thing that stands to challenge this pressure is MSP.

IT service providers, resellers, value-added resellers (VARs), and MSPs are widely using networking technologies from the last few years. The networking technologies are sold and supported on a project basis, where the support is delivered as needed, and the invoice is billed hourly. Managing the networks effectively and delivering networking infrastructure as a service have been the most conversed topics in the near past. Here are a few key considerations and components for MSPs to successfully deliver networking as a service.

Effective Pricing

Every MSP has its unique pricing strategies, which is dictated by the specific needs of the business and market demand of the region. A most common strategy that MSPs follow is per-device or per-user pricing, while others opt for a fixed price model. It is better to offer networking services in a similar way. The networking providers should consider the value they are adding and align it with a profitable and easy-to-understand model for the clients. A price must be set, taking into account all the cost plus margin based on the value a provider is delivering. The whole idea of selling a networking service is selling the expertise and value, and that must be charged effectively.

Value-Based Sales

Rather than focusing on individual networking devices–access points, routers, and switches, it is essential to pitch the value of networking while selling the network-as-a-service. Every client expects a reliable network. An improper networking service impacts the day to day life of clients. Hence the service providers should take it as a challenge to resolve these issues by properly understanding the needs of the client. It is essential to know how much a client relies on the connectivity to run the business, and accordingly, how much value do their network needs.

Ready-To-Go Marketing Strategy

The best strategy to sell managed services is to sell networking hardware along with an ongoing monthly service fee for that hardware. But, networking as a service cannot be sold in the same model. The strategy to sell networking as a service should be based on several factors, like the way of delivery of other managed services, market situations, financial concerns such as margin targets, cash flows, etc.

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