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

1. Why You Should Be Selling
Business Continuity Services
5 MSP Tips to Get Started
April 2012

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&A
2

3. These are business
opportunities for you and
your customers.
3

4. This is one, too.
4

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. 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 compliant
6

7. Why BC/DR?
7

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. 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 firm
9 Source: IDC, 2011

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, 2011
10

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 support
11 Source: Kaseya Survey of 435 Global5000 IT Executives, 2011

12. But Is “Going Horizontal” Too Hard
to Solve, Too?
12

13. It’s real.
13

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 gurus
14
• Publishing as thought leaders

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. BCS Elements Local or On Site at Data Center or
Cloud
• Assess & analyze • Systems • Plan
• Backup & replicate • Communications • Report
• Restore • Data • Train
– Failover & failback • Processes
16 – Recover & continue • Functions

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 reports
17

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-revenue
18

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
prevented
19

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) effectively
20
improves margin to 38%!

21. Why Wait?
21

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. 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 today
23
Attack the weaknesses

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 it
24
Create value

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 $75K
25
Be precise

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. 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 client
27
Be disciplined

28. Ready? Go!
Know competition See where you fit
Decide on offerings Provide value
Target prospects See who you want
Qualify prospects Go get them
Execute on KPIs Repeat

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 need
29

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 cloud
30

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/contactme
31 /KaseyaFan /kaseya @kaseyacorp