Adapt or Die: Why MSPs are Turning to Software as a Service

Managed Service Providers (MSPs) are facing mounting pressure to ‘evolve or die’ as our technological world advances. New technologies can no longer be ignored, and economic pressures and increasing customer demands mean MSPs need to be taking a fresh look at their business if they hope to go the distance. Customers are demanding so much more of their MSPs, and margins have been slowly driven down, so MSPs must adapt […]

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Madi joined Blancco in June 2018, bringing a wealth of content experience to the fold. As Content Manager, Madi strategizes and executes on all content across our site and social channels, as well as heading up email communications. Almost five years into her content career, Madi has worked with myriad global companies on their content and creative strategy, and has a passion for all things literary.

Managed Service Providers (MSPs) are facing mounting pressure to ‘evolve or die’ as our technological world advances. New technologies can no longer be ignored, and economic pressures and increasing customer demands mean MSPs need to be taking a fresh look at their business if they hope to go the distance. Customers are demanding so much more of their MSPs, and margins have been slowly driven down, so MSPs must adapt their service offering and opt for offerings that will best serve their bottom line.

So, what have MSPs been doing to transform their business offering? They’ve undergone a silent revolution. We can see in the market that there’s been a significant shift to Software as a Service (SaaS) offerings as pressures on margins have mounted – a recent study from CompTIA found that almost 75 percent of MSPs surveyed said that some or all of their cloud-based revenue came from SaaS-related activities.

Why SaaS?

SaaS is fast becoming a major profit booster for those MSPs responding to change. Securing a competitive place in the market is becoming increasingly difficult, and it is those with flexible solutions that have more generous margins that will prosper. MSPs need to meet a range of client demands that is only intensifying over time, and by offering SaaS services, these MSPs have a better chance of maintaining their client relationships. Fulfilling client needs is integral to survival, and clients are demanding SaaS.

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Internally speaking, SaaS allows MSPs to offer faster deployment times and to benefit from recurring revenue. Reselling SaaS as a channel partner is a healthy way to boost product offering while looking after your bottom line – IDC project that 70 percent of SaaS revenue will be generated via the channel by 2020.

Flexibility is another key advantage of SaaS and indeed any cloud-based solution – SaaS is scalable to fit both the budding startup and the Fortune 500. And what with the flexibility of margins offered by offering SaaS services via the channel, SaaS has the power to transform one into the other, propelling that budding startup into profitable lands.

Blancco offers Erasure as a Service to its channel partners, enabling MSPs to add secure, auditable data erasure to their product suite. With no limit to the margin you can make on this offering, EaaS from Blancco could boost revenue indefinitely, adding to your arsenal of software services. Remember: data erasure is essential to any and every business that comes into contact with sensitive data – help your customers comply with global regulations and keep their own customers safe and secure with EaaS.

Discover more about Blancco’s EaaS offering here, and begin your journey as a channel partner here.

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