Why are solution providers shifting to managed services models?
In order to be more proactive in identifying and addressing issues in customer environments before they have a chance to become work-stopping outages, an increasing amount of service providers are moving toward a managed services model. Service providers differentiate themselves from their competitors and scale their services by utilizing tools and technology to deliver repetitive services such as patch management and disk optimization.
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In addition to an increase in profitability, managed service providers (MSPs) also receive annuity-based revenues that compound monthly as new managed services customers are brought on board. This eliminates the peaks and valleys of reactive break-fix or transaction-based professional services billing over time. Furthermore, invoicing for managed services occurs in advance of service delivery which positively impacts cash flow for the MSP.