Last week’s IT Nation Connect event, ConnectWise’s annual users conference, held in Orlando, Fla., hit on a few of the core trends that channel partners grapple with today.
Trends included the need for partners to specialize their businesses, an imperative sparked by the commoditization of basic IT services. ConnectWise also called on partners to better align with the as-a-service model — as well as key sales and marketing metrics that executives tend to neglect or ignore. Another trend highlighted at IT Nation Connect 2018 was the need for managed services providers (MSPs) to revamp cybersecurity practices. ConnectWise, for its part, said security will play a large role in its product roadmap going forward.
As the IT services industry matures, MSPs need to differentiate themselves, whether it means specializing in vertical and niche markets or a particular branch of technology such as managed security.
According to ConnectWise, the managed services industry is poised to reach $154.5 billion globally by 2021, representing a 13% compound annual growth rate. The drivers behind the growing demand include customers seeking cost efficiencies, technological innovation, agility and continuous improvement. Additionally, as customers increasingly cope with a scarcity of internal technical resources, they will look to outsource to IT services providers — an opportunity for MSPs with specializations.
“The days of the generalist — I don’t want to say are dead — but all of us are going to find a need to specialize and differentiate ourselves in some way,” said Arnie Bellini, CEO of ConnectWise, during his IT Nation Connect keynote.
As-a-service model proficiency
In the near future, Bellini said, all technology will be delivered and managed as a service. This means channel companies should understand the as-a-service model and develop business strategies accordingly.
Craig Fulton, chief product officer at ConnectWise, said the subscription-based, as-a-service model is essentially “a customer experience” where customers own the relationship. “The sale doesn’t end when they sign that quote; the sale begins then,” he said.
He emphasized a handful of metrics that subscription-based services providers should pay close attention to: churn, retention, customer acquisition costs and customer lifetime value.
ConnectWise’s cybersecurity posture
Fulton said ConnectWise has focused on aligning its platform with the National Institute of Standards and Technology (NIST) Cybersecurity Framework. He noted that ConnectWise had an audit done against the NIST Cybersecurity Framework and identified areas of success and improvement.
Security, because of its constantly shifting landscape, represents a top challenge for ConnectWise going forward. “We are aligning our roadmaps to adhere the products to the NIST Cybersecurity Framework, and so there will be challenges there in getting that work completed and educating our partners on how to use the system to adhere to that,” Fulton told us in an interview.
He added that ConnectWise remains committed to its vision for a connected ecosystem, showcased at the IT Nation 2017 conference. “It is such a priority, we have created a business unit within the company that is focused on that,” he said.