Why You Should Be Selling Business Continuity Services (5 MSP Tips to Get Started)


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5 MSP tips for selling business continuity and disaster recovery services. Presented by Kaseya. April 2012.

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Why You Should Be Selling Business Continuity Services (5 MSP Tips to Get Started)

  1. 1. Why You Should Be SellingBusiness Continuity Services5 MSP Tips to Get Started April 2012
  2. 2. Agenda • Introductions • Our speaker • Why BC/DR? • How Kaseya MSPs do BC/DR • 5 Tips to get started with BC/DR • Recap • About Kaseya • Q&A2
  3. 3. These are business opportunities for you and your customers.3
  4. 4. This is one, too.4
  5. 5. Our Speaker Alex Brandt Director , US Sales Kaseya About Alex: 20 years IT management experience. 4 year Kaseya veteran. US Team Lead for inside sales organization at Kaseya. Former director of alliance partners at CA. Former network administrator at Nestle.5
  6. 6. About Kaseya Patented #7,827,547 #7,620,707 #7,895,320 • Enterprise-class IT systems management for everybody • Value Proposition – A single Kaseya user can proactively manage 1,000s of automated IT systems and network tasks in the same amount of time required by a team of technicians using other techniques • Key Facts – Founded 2000 – Privately held, no debt, no external capital requirements – 33 offices worldwide in 20 countries with 450+ employees • 12,000+ customers • 60%+ of top Global MSPs use Kaseya • Millions and millions of assets managed – Patented IT service delivery process & remote IT management process • 24 patents pending – Common Criteria (EAL2+) certified and FIPS 140-2 security compliant – ITIL v3 compliant6
  7. 7. Why BC/DR?7
  8. 8. Industry Experts Say • More than 90% of companies that experience one week of data center downtime go out of business within 12 months – National Archives and Records Administration, 2010 • 89% of IT managers test their disaster recovery/failover systems only once a year or not at all – Brilliant Ideas LLC for Scalent Systems Inc., 2011 (via @IngramMicro)8
  9. 9. Analysts Say • 70% of ALL successful attacks on computer networks were carried out by employees and insiders • Companies lose an average of $84,000 for every hour of downtime Business continuity services remains one of the biggest focus areas for today’s CIO…for every firm9 Source: IDC, 2011
  10. 10. End User Customers Say Average recovery time from major outage is 4 hours 70% of respondents said it would take at least four hours for their servers to recover completely from failure, including restored software, configuration and network and storage connectivity. Kaseya Survey of 435 Global5000 IT Executives, 201110
  11. 11. 4 Big Impacts of IT Disruptions • Decreased access to key data – Compromised operations – Data corruption – Transaction loss • Decreased business momentum – Delays in processing – Delays in order delivery $25K per event • Decreased revenue – Lost sales (too!) • Increased risk of “credibility hit” – Jeopardize reputation – Impact customer service – Impact customer support11 Source: Kaseya Survey of 435 Global5000 IT Executives, 2011
  12. 12. But Is “Going Horizontal” Too Hard to Solve, Too?12
  13. 13. It’s real. 13
  14. 14. What Our MSPs Are Doing • Verticalizing & specializing (horizontal) • Delivering Business Continuity Services; it’s the #1 growth opportunity – Sites – Systems – Data (& recovery) • Gathering certs & creds • Presenting as gurus14 • Publishing as thought leaders
  15. 15. What They Say BC/DR Is Found money • Business continuity services • Designing and installing reliable networks • Proactive monitoring • Proactive maintenance • Helpdesk with rapid problem-resolution • “Problem prevention” • The “implemenation” of the plan for dealing with disruptions & disasters • “Client velcro”15
  16. 16. BCS Elements Local or On Site at Data Center or Cloud • Assess & analyze • Systems • Plan • Backup & replicate • Communications • Report • Restore • Data • Train – Failover & failback • Processes16 – Recover & continue • Functions
  17. 17. Kaseya for Business Continuity Services • “All-in-one” • KOB for file level backups • KBR for systems backups • KID for image management • Preconfigured scripts, monitor sets, and reports17
  18. 18. MSP GTM Strategy Focus Target most profitable services Engage in strategic planning Quantify business impact and align with goals Deliver Increase staff expertise and optimize network Reduce risks and costs Facilitate highest standard of service delivery Accelerate Increase demand for services and expand market share Connect customers faster Accelerate time-to-revenue18
  19. 19. MSP Customer Reduced IT Cost by 44% Business Continuity Services provides cost savings from: Reduced recovery infrastructure requirements Reduced time needed to create and maintain DR plans and processes Reduced cost needed for DR tests; eliminates IT staff overtime and application impact Reduced financial exposure for customer during a major outage - recovery in a matter of hours, not days or weeks The below captures an estimate of the cost savings provided by BCS when used to recover from a major outage or disaster Company that does $41M in revenue a year = ~$160K/weekday. Assume that BCS can achieve RTO of 2 hours instead of 10 hours compared to traditional DR plan. Cost of Lost Revenue MSP BCS Fee 8.0 X $20,000 X 1 12 X $7,500 X + X = $ 70,000 Hours of Lost revenue per Number of web Number of Monthly BCS downtime hour stores months fee 44% savings prevented19
  20. 20. MSP Earned Incremental 17% Margin Business Continuity Services provides incremental revenue and profit from: Prevention of lost business revenue due to outages at mission-critical, high-revenue applications The below captures an estimate of the cost savings provided by BCS when used to recover from a major outage or disaster BCS annual contract (12m months) billed at $7,500 per month. Assume 1 Junior Technician manages 100 PCs and 1 server using Kaseya Managed Services Automation bundle. MSP BCS Fee MSP Cost 12 X X $7,500 - 1.5 X X $50,000 = 17 % Number of Monthly BCS Cost factor, Technician $15,000 months fee including salary per year setup, OH + software Using value pricing ($120K contract) effectively20 improves margin to 38%!
  21. 21. Why Wait?21
  22. 22. 5 MSP Tips to Get Started 1. Know competition 2. Decide on offerings 3. Target prospects 4. Qualify prospects 5. Execute on KPIs It’s possible.22
  23. 23. 1. Know Competition • National providers – These firms have one goal – get the customer on the hook for a 5 year “hot-site” hosting contract • Niche players in each region – They are few in number, but they do very well • Others – Many are more marketing than MSP • Status quo (ie, do nothing), where many companies are today23 Attack the weaknesses
  24. 24. 2. Decide on Offerings • What are clients drawn to? – What’s your service offer? – Local, data center, cloud? • What services can’t they live with? – Can you price those higher? • What services are least used? – Can you remove them and reduce cost? • Sell specialty services and consider a guarantee – Is your ITSM solution ready? • Earn non-IT certs (ie, DR Institute) • Learn about compliance and write/speak about it24 Create value
  25. 25. 3. Target Prospects • Firms with annual IT budget > $10 million are definitely spending money on BC/DR • Firms - with smaller budgets - that are highly regulated need BC/DR – Financial, healthcare, publicly traded – And retail • All companies need some level of recovery capability and smaller project sizes are common between $20K to $75K25 Be precise
  26. 26. 4. Qualify Prospects • Is your company prepared for any type of disaster that may strike the main worksite or data facilities? • Do you have a plan that covers both IT as well as the business for any interruption? • Do you have any business drivers (regulations) that require a comprehensive BC/DR plan? • What critical data do you depend on for operations or needs to be protected? • What is your backup strategy or process to ensure that this data is protect? • How sensitive is your business to security issues or compromises? • Do you anticipate any strategic changes taking place in the near term?26 Be consistent
  27. 27. 5. Execute on KPIs • Develop KPIs & SLAs – Define SLAs w/ your clients • Average Response Time and Average Time to Resolution • Client Satisfaction Score • No. of Tickets by Client and by Type • Average Wait Time & Abandon Rate • Average MRR per client27 Be disciplined
  28. 28. Ready? Go!Know competition See where you fitDecide on offerings Provide valueTarget prospects See who you wantQualify prospects Go get themExecute on KPIs Repeat
  29. 29. Kaseya Helps MSPs 60%+ use Kaseya • Higher revenue – Integration gives you more services to offer • Higher profit – Integration means fewer techs per managed machine and cloud means pay as you go & grow • Better service delivery – Automation provides standardization, which means faster responses with less errors • Better control – Integration means it all ties together so you can actually see everything you need29
  30. 30. Kaseya for Automated Managed Services • Comprehensive – Automates all systems management tasks – Expert RMM via Kaseya Live Connect & ITIL SD – Integration friendly (CRM & PSA) – Scalable and flexible • Uncomplicated – Lightweight, 1 agent – Cross platform – Thousands of pre-built scripts – Easy to install & use via a www.kaseya.com/msp single web console • Affordable – On-premise or cloud30
  31. 31. We Can Help Just for MSPs • Learn more about Kaseya blog.kaseya.com/blog/category/msp www.kaseya.com/msp • For a free live product demo www.kaseya.com/demo • For a free trial www.kaseya.com/freetrial • For a price quote www.kaseya.com/pricequote Visit With Kaseya @ The Exhibitor Zone • To speak with us www.kaseya.com/contactme31 /KaseyaFan /kaseya @kaseyacorp