0
Staffing MSPs for GrowthPresented by Redmond Channel Partner MagazineSponsored by KaseyaNov. 6, 2012
Participants  Scott Bekker, editor in chief, Redmond  Channel Partner  David Castro, director, marketing, Kaseya  Partners...
Agenda Rules of Thumb for MSPs – Scott Bekker Metrics from 12,000 Partners – David Castro Panel Discussion – Howard Cohen,...
Rules of Thumb: Big Picture Central Insight for MSP profitability: Dedicate the fewest possible hours to support the most ...
Founding Employees The Professor (technical genius) Thurston Howell III (numbers person) Movie Star (charismatic salespers...
Technical Employees Customer service people (entry level) Highly sophisticated engineers Remote management tools specialis...
Business to Technical Headcount Two sales paths for MSPs   Sell through solution providers   Sell to end customers
Sell Through Solution Providers  Reduces need for headcount on the business  side  Can be a great way to scale quickly  Mu...
Sell to End Customers Need more marketing and sales employees right away Business to technical employee ratio will be higher
When to Think about M&A?1) Need capital for new hires2) Need capital to expand into new geographicalmarkets3) Need capital...
Endgame: Importance of Growth When selling an MSP business one metric matters most. Is it?   Technology and equipment   Em...
About Kaseya  • Enterprise-class IT systems    management for everybody  • Key Facts      – Founded 2000 & privately held,...
MSP KPIs: A Few 2012 Observations
Service Level KPI: 58% of Kaseya MSPs Improved IT Asset Uptimeby 10 to 20% or More                      Less than 5%, 20% ...
Profitability KPI: 60% of Kaseya MSPs Improved Technician Efficiency byMore than 100% but Only 25% Use Cost Basis in Their...
Services Mix KPI: The EARNINGS Generated from Managed ServicesAnd Project Work or Resales Are Quite Different     • MSPs a...
Firm Valuation KPI: MSPs are 3x to 10x More Valuable ThanTraditional VARs     KPI / Status             Break Fix          ...
Panelists  Scott Bekker, editor in chief, Redmond  Channel Partner  David Castro, director, marketing, Kaseya  Partners & ...
Audience Questions?   More Information from Kaseya:   For a free live product demo   www.kaseya.com/mspdemo   For a free t...
Upcoming SlideShare
Loading in...5
×

MSP Best Practice | Staffing for Growth and Core KPIs to Use

1,178

Published on

MSP best practices. How to sfaff your MSP with the right type and quantity of technicians for maximum growth and profitability. Examples of several core KPIs used by best in class MSPs. Presented by Kaseya and Redmond Channel Pro magazine. November 2012.

Published in: Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,178
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
42
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "MSP Best Practice | Staffing for Growth and Core KPIs to Use"

  1. 1. Staffing MSPs for GrowthPresented by Redmond Channel Partner MagazineSponsored by KaseyaNov. 6, 2012
  2. 2. Participants Scott Bekker, editor in chief, Redmond Channel Partner David Castro, director, marketing, Kaseya Partners & Service Providers Howard M. Cohen, columnist, Redmond Channel Partner, consultant & former MSP
  3. 3. Agenda Rules of Thumb for MSPs – Scott Bekker Metrics from 12,000 Partners – David Castro Panel Discussion – Howard Cohen, David Castro and Scott Bekker Audience Q&A
  4. 4. Rules of Thumb: Big Picture Central Insight for MSP profitability: Dedicate the fewest possible hours to support the most possible recurring revenue contracts. How do you staff MSP growth? Slowly and thoughtfully
  5. 5. Founding Employees The Professor (technical genius) Thurston Howell III (numbers person) Movie Star (charismatic salesperson)
  6. 6. Technical Employees Customer service people (entry level) Highly sophisticated engineers Remote management tools specialists Emerging: SLA management experts
  7. 7. Business to Technical Headcount Two sales paths for MSPs Sell through solution providers Sell to end customers
  8. 8. Sell Through Solution Providers Reduces need for headcount on the business side Can be a great way to scale quickly Must strenuously avoid appearance of potential channel conflict to succeed
  9. 9. Sell to End Customers Need more marketing and sales employees right away Business to technical employee ratio will be higher
  10. 10. When to Think about M&A?1) Need capital for new hires2) Need capital to expand into new geographicalmarkets3) Need capital to expand into new businesspractices4) Owners’ energy level
  11. 11. Endgame: Importance of Growth When selling an MSP business one metric matters most. Is it? Technology and equipment Employees Accounts Recurring revenue contracts
  12. 12. About Kaseya • Enterprise-class IT systems management for everybody • Key Facts – Founded 2000 & privately held, no debt, no external capital requirements • Consistent, profitable revenue growth – 33 offices worldwide in 23 countries with 450+ employees • 12,000+ customers • Millions of assets managed – 6 patents issued for IT service delivery processes & remote IT management processes • 37 patents pending – Common Criteria (EAL2+) certified and FIPS 140-2 security compliant – ITIL v2 and v3 compatible
  13. 13. MSP KPIs: A Few 2012 Observations
  14. 14. Service Level KPI: 58% of Kaseya MSPs Improved IT Asset Uptimeby 10 to 20% or More Less than 5%, 20% More than 20%, 21% Between 5% and 9%, 22% Between 10% and 20%, 37%Source: Survey of 1,098 Kaseya Customers
  15. 15. Profitability KPI: 60% of Kaseya MSPs Improved Technician Efficiency byMore than 100% but Only 25% Use Cost Basis in Their Pricing Strategy IT Asset Management Efficiency Improvement How Pricing Strategy Determined (per Technician) Value Based, More than 15% 300%, 21% CEO, 33% Less than 100%, 40% Cost Based, 25% By 200%, 17% Price Match, By 100%, 22% 27%Source: Survey of 823 Kaseya Customers
  16. 16. Services Mix KPI: The EARNINGS Generated from Managed ServicesAnd Project Work or Resales Are Quite Different • MSPs are more profitable than VARs – MSP typical gross margin is 50-80% – VAR is 5-10% • Pure-play MSPs are more profitable than mixed-model MSPs – Pure play MSP average gross margin is 75% – Mixed MSP is 55% • T&M work is 24% • Project work is 44% • VAR resale is 8%Source: Survey of 311 Kaseya Customers
  17. 17. Firm Valuation KPI: MSPs are 3x to 10x More Valuable ThanTraditional VARs KPI / Status Break Fix Reactive Proactive Managed Average Varies $100/hr $200 to $80/PC Deal Size $3,000 $275/server Gross Profit <10% 50% 70% >75% <50%/tech 50%/tech 70%/tech 90%/tech Utilization < 0.2 0.3 1.25 > 2.0 Firm ValuationSource: Survey of 148 Kaseya Customers (who merged or acquired others), SCORE Assn. (2011), and Service-Leadership Inc. (2011)
  18. 18. Panelists Scott Bekker, editor in chief, Redmond Channel Partner David Castro, director, marketing, Kaseya Partners & Service Providers Howard M. Cohen, columnist, Redmond Channel Partner, consultant & former MSP
  19. 19. Audience Questions? More Information from Kaseya: For a free live product demo www.kaseya.com/mspdemo For a free trial www.kaseya.com/trynow To speak with us www.kaseya.com/contactme /KaseyaFan /company/kaseya @kaseyacorp community.kaseya.com
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×