ChannelTrends: Platforms or Point Solutions for Managed Services Delivery?

Life as an MSP isn’t easy. That’s not to say it isn’t an appealing business opportunity. With a steady monthly cash flow and a host of automation and remote management tools available, the managed services model certainly has its upsides. But those come with end-user pressures to strive for continual improvement and the need to make constant operational changes to remain competitive and profitable. The latter issue can be compounded, at least in some part, by their vendor partners. When suppliers frequently modify their programs and offerings, it tends to take precious time and attention away from MSPs’ critical business activities. The same principle applies to the tools.

Vendors are often in a no-win situation. When they don’t adapt their offerings to meet their partners' needs, they get criticized, or worse, dropped. When they do innovate based on the MSP community’s feedback, they often find themselves under attack as well. That conundrum is just one of the reasons many vendors are adopting a more comprehensive suite of managed services tools to offer partners.

What were originally developed and marketed as professional services automation solutions are quickly becoming all-in-one platforms with the addition of remote monitoring and management capabilities. Things have gotten just as complex on the opposite side of the technology spectrum—or should I say simplified? Several RMM companies have similarly added ticketing and management functionality over the past few years. What used to be point solutions have become do-it-all tools MSPs can use to run many aspects of their businesses. Many of the players have been part of the MSP landscape for quite some time (though their capabilities have grown significantly), including Autotask, ConnectWise, Continuum, Kaseya, LogicNow, Solarwinds N-able and Tigerpaw. Newer entrants Atera, Karisoft and Vorex have also invested a lot of time and effort to build out their channel programs and services.  

Through extensive development and a host of acquisitions, these tools have been honed and tweaked to meet the needs of more partners. Those vendor investments often include the development of robust APIs that allow MSPs to integrate their other favorite options with the platform, even if it already has similar capabilities. The other advantages?

1. Convenience
   All-in-one is a simple enough concept. These platforms allow MSPs to work with fewer vendors, thus minimizing the processes and people they have to work with. That saves time, training and, perhaps most importantly, billing issues.

2. Interoperability
   Each element of a platform is typically designed to leverage other system features. With access to the full code, developers have an opportunity to build in more bells and whistles than those using an API can.

That all sounds great, but some MSPs continue to ask if reliance on a single vendor for their critical business operations is really a good thing. As recently as five years ago, the jury was mixed. A number of MSPs were using the Swiss Army knife analogy: while an all-in-one can be handy, you might need a sharper or more specialized blade at some point in time. But that was then, and many of the vendors listed above have since added capabilities to hone their offerings to overcome those perceptions. Of course, there are still potential disadvantages each provider will have to evaluate before implementing an all-in-one platform. Those include:

1. Dependence on a single vendor’s tools
   This is the “all your eggs in one basket” concern. MSPs are effectively building their business on these systems, so they have to be comfortable with the supplier’s ability to support their long-term needs, as well as their customers’ long-term needs, before signing on. While PSA capabilities are often a major part of the purchase decision, many providers rely on multiple RMMs and other tools to support their clients. Finding the right mix in an all-in-one is harder, but not impossible.   

2. Flexibility
   This is only a negative if the platform doesn’t allow MSPs to link in their preferred tools. Some vendors extend robust APIs to other managed services vendors to integrate their functionality, while others offer a very limited set of connection options, if any. Providers should discuss all their available tool options with potential platform vendors, including what their API can (and can't) do.

3. The Relationship Equation
   A great CAM is invaluable to an MSP, helping them navigate through the vendor’s onboarding processes, training, implementation and other parts of the channel program. Inversely, a bad CAM can be a nightmare for a provider that relies heavily on that company’s tools to make his or her business successful. Before locking into a single vendor with an all-inclusive platform, MSPs need to be comfortable with the people they’ll be working with. They need to extensively vet the company, speaking with peers who partner with that specific vendor and check out online forums (which can be useful, as long as you realize the negative reviewers are often more vocal than supporters).

Is an all-in-one right for every managed services business? That’s really a personal choice that every MSP has to decide for himself (or herself). But the good news is they are getting easier to live with, with more flexibility and features. It’s really good to have options…