Datto State of the MSP Report Top Pain Points Review 2019

Be Different. Deliver Excellence.

Jun 04, 2019

Annual Survey Shares Managed Services’ Challenges and Opportunities in the IT Channel

Every year, Datto surveys thousands of managed service providers (MSPs) to learn about their current challenges and opportunities in the future of the IT Channel. One section Collabrance focuses on in Datto’s State of MSP Report is the identified pain points to evaluate what solutions we can provide to help MSPs overcome challenges and scale faster.

Solutions to Overcome Top MSP Pain Points

PAIN POINT #1:

44% of MSPs confirm Sales and Marketing as their leading pain point (AGAIN).

For 3 years, Datto’s State of MSP Report has identified “Sales and Marketing” as the top challenge. We understand many MSPs wear multiple hats in the business and between being a tech, account rep and sometimes accountant, they have little time to focus on marketing efforts.

"Many MSPs struggle with sales and marketing because they lack in-house resources and often don’t have strong backgrounds in these areas." - Tracy Rock, Director of Marketing at Invenio IT (Datto State of MSP Report 2019)

A lack of a solid sales and marketing plan can result in stagnant growth and the inability to grow at the pace MSPs desire. Collabrance recognizes MSP’s ongoing struggle with sales and marketing, and continue to build solutions in efforts to help. Here are some of our sales and marketing resources our partners enjoy today:

  • Virtual Sales Managers: Dedicated Account Managers for Coaching, Best Practices, Role Playing, Compensation, etc.
  • Peer Group Opportunity: Access to Collabrance Partners, Vendors and Leaders for knowledge sharing, etc.
  • Sales Simplicity Seminar: How to Sell Everything-as-a-Service
  • MSSP Accelerator: Sales & Marketing Summit
  • Partner Portal: Sales tools and white-label marketing templates (i.e. Pricing Calculator, Target Customer Profiles, Vertical Value Propositions, Quick Qualifier, Assessment Forms, Talk Tracks, Infographics, Videos, etc.

Value-Add Services

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PAIN POINT #2:

38% of MSPs express attaining a Work/Life Balance as a top challenge.

Maintaining a healthy work/life balance can be really difficult whether you’re new to Managed IT Services, or trying to scale your existing MSP business.

Being busy is great as MSPs grow, but it can overlap and have a big impact to your work/life balance – negative or positive. Our goal is for growth in our partners business to be positive and achievable, while still allowing our partners to have a healthy life outside of work.

Collabrance wants our partners to be able to achieve whatever reason why you got in the managed services business.

"Collabrance makes things so much easier, you sleep better at night, and you're really able to focus on growing your business." – SDG Technology Group

In addition to vendor management and product development, the Collabrance Help Desk under our “Complete” offering consistently resolves 90%+ of end-user’s IT issues remotely. This means that MSPs are able to focus on scaling your business, maintaining a high-level of customer satisfaction and getting home for dinner at night (or whatever your personal goals may be!).

Benefits of Outsourcing

PAIN POINT #3:

33% of MSPs cite Revenue Growth as a business challenge.

Many MSPs will experience stagnant growth and a ceiling in their revenue growth. In our dynamic IT industry, things that worked well yesterday aren’t guaranteed to produce the same results tomorrow. Customer’s IT needs including their buying behavior changes, and MSPs also need to adjust the way they go-to-market and their technology stack and services to stay relevant.

“ETS has been offering managed services for about 12 years and recently decided to partner with Collabrance because we wanted to provide top-notch customer service, scale faster, generate more revenue, enhance our knowledge and expertise and really grow our resource pool." – Erb’s Technology Solutions

Every quarter, our partners can expect new and updated enhancements released at Collabrance. Changes are a part of our nature, and we work hard to be proactive and efficient to make it easier for both our partners and their end-user customers.

Collabrance is backed by our parent company, GreatAmerica Financial Services, which allows us the unique benefit to help our MSP partners provide custom financing solutions to end-user customers. This helps MSPs capture more monthly recurring revenue, build their business valuation, and provide the technology solutions their end-users seek and need.

Benefits of Outsourcing

PAIN POINT #4:

30% of MSPs share Ransomware/Cybersecurity keeps them up at night.

The demand for cyber security will only continue to grow, and it is evident that everyone is at risk. A cyber attack on a customer, or an MSP can be detrimental. It is too big of a risk to provide a cyber security solution you’re not confident in performing.

MSPs who aren’t enhancing their cyber security solutions are losing customers and missing opportunities. Those who are taking the leap to become a Managed Security Service Providers (MSSP)’s are capturing more by leading with their cyber security services customers now seek. In fact, MSSPs are able to charge $200+ per seat.

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Image above: 5% of MSSPs vs 87% of MSPs have lost business because their
security offering was lacking something a customer needed.

Collabrance made the leap a year ago to become a Master MSSP. Our Product Development Team is dedicated to vetting, implementing and managing vendors that are able to provide best-in-class cyber security products and services. Collabrance partners are able to go-to-market and differentiate as a MSSP with our private-label offering.

Become an MSSP



Next Steps and Solutions to Overcome MSP Challenges

The Datto State of MSP Report always teaches us new things about MSPs and the IT Channel. We enjoy the fun facts like confirming we both like science fiction, as well as the technical items like which security solutions you’re offering today. We couldn’t agree more that:

“[…] Now is a good time to be in the industry.” - Nearly 100% of MSPs in Datto Report

If your MSP business experiences any of the challenges above, apply for a Collabrance Partnership to see if there are opportunities we can help you overcome challenges and sleep better at night.

Partnership Application




Category: Business Practices

About The Author

Corey Kerns

Corey Kerns, Vice President and General Manager, is responsible for the overall vision at Collabrance, and oversees sales, marketing, operations, strategic leadership and financial performance. In 2015, Corey joined Collabrance as the Senior Finance and Operations Analyst. In this role, Corey was responsible for developing and monitoring key performance indicators, as well as assisting in the evaluation of profitability, efficiency and automation strategies. Prior to joining Collabrance, Corey started at GreatAmerica in 2011 and served as the Senior Business Unit Analyst for the Connected Technology Group. In this role, Corey led all activities with respect to financial controls and evaluating the financial implications of the business unit’s operating strategy. Corey received his B.A. in Business Administration from Wartburg College and earned an M.B.A. from the University of Iowa.