Joseph Mileo

By: Joseph Mileo on January 31st, 2019

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How to Grow Your MSP Business With a Data Center

Data Center | Channel Partner

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Managed service providers (MSPs) are important players in today’s fast-moving digital business landscape. The push to expand technological infrastructure and compete in emerging markets has caused many companies to rethink their IT deployments. Without the resources or expertise to implement the changes necessary to take advantage of new opportunities, they are increasingly turning to MSPs that provide the services they need to push their business to a new level.

Although MSP businesses have the skills and experience necessary to implement these solutions, they often do not have the physical infrastructure in place to accommodate them. In many cases, they’re forced to work with their clients’ existing on-premises solution, which is rarely up to the task. By forging partnerships with data centers that provide data center as a service (DCaaS) options, top managed service providers can access the infrastructure and connectivity options they need to build IT solutions that make a difference.

Connectivity

Data centers provide a variety of connectivity options to their customers. For MSPs, regardless of what type of managed services they provide, these options make it possible to construct bundled services that address the specific needs of their clients. Hybrid and multi-cloud deployments, geodiverse data backup, and blended connectivity that guards against distributed denial of service (DDoS) attacks can all be easily set up in a data center environment. The DCaaS model allows MSP businesses to adapt their services to an individual client’s needs, allowing them to be more competitive and make a name for themselves as a top managed service provider.

Scalability

Like any other business, an MSP wants to grow. Forging a relationship with a trusted data center partner puts top managed service providers in a position to scale their services over time. With a DCaaS partner, transitioning from small to medium-sized clients is a simple matter of adding more personnel and provisioning more resources. Data centers already offer high levels of uptime and provide the remote hands support that can accommodate MSP growth, even allowing them to hand off some routine tasks to data center personnel. This allows all types of managed service providers to focus on servicing new customers to generate higher revenue and better profit margins.

Marketability

Despite the pressing need many companies have for innovative IT solutions, MSPs often struggle with lead generation and sales conversion. Even the top managed service providers can fall into a trap of maintaining their existing client base along with the occasional new referral rather than taking a more aggressive approach to growing their MSP business. Establishing a strong relationship with a data center allows them to expand their marketing reach by offering a broader range of services and potentially positioning themselves as a facility’s preferred MSP partner.

Compliance

When an MSP business grows, it generally takes on bigger clients with more complicated IT needs. In many industries, this includes complex compliance requirements that govern how sensitive customer data must be handled. Getting up to speed on compliance standards can be a daunting task, but DCaaS facilities build their infrastructure with these regulations in mind. A good data center partner maintains a full suite of certificates and attestations to demonstrate their compliance with legal standards, allowing an MSP business to pass those same assurances on to their customers. For clients in high-stakes industries like healthcare and finance, finding an MSP partner who can provide peace of mind when it comes to avoiding the expensive fines and damaging lawsuits that come from compliance violations is a huge benefit.

With the wide range of data center as a service offerings available today, MSP businesses have plenty of opportunities to establish the relationships they need to position themselves for future growth. A good DCaaS facility allows the top managed service providers to address the needs of different types of customers as they grow and scale their service offerings as needed. Without a data center to help deliver their services, MSPs will find it difficult to grow their business predictably over time.

 
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About Joseph Mileo

Joe Mileo is the Vice President for Alliance Channel Development and Service Provider Sales for vXchnge. Joe is building and continues to revamp a successful and strategic channel business for vXchnge.

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