What is a Managed Service Provider (MSP)? What is the best solution for an MSP?

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1 Managed Service Providers An Introductory Overview

2 Agenda Managed Services What is a Managed Service Provider (MSP)? Why become an MSP? How do you become an MSP? What is the best solution for an MSP? Where do you get started? 2

3 What is a Managed Service Provider? 3

4 What is a Managed Service Provider? Managed Service Provider From Wikipedia, the free encyclopedia A managed service provider (MSP), also called a management service provider, is a company that manages information technology services for other companies via the Internet. Common services provided by MSPs include remote networking, desktop and security monitoring, patch management and remote data back-up, as well as technical assistance. Managed service providers sell managed services and offer several different price structures. Most commonly used is a per-month fee, but MSP's can also charge a time and material model as well as price per desktop, server, or network device. They promise to monitor their client's IT infrastructure and resolve any issues that arise within it. This provides ease of mind for the client, as well as predictable recurring revenues for the MSP. Remote tools allow MSP's to virtually control the companies entire network operations off-site without ever having to step foot into the company. This article is licensed under the GNU Free Documentation License It uses material from the Wikipedia article Managed Service Provider 4

5 Managed Services are Distinct from Other Service Offerings Traditional Services Attributes Break/fix Inconsistent revenue stream Opportunistic advisor Desk-side model drives low technician utilization Managed Services Attributes Proactive monitoring and maintenance Predictable revenue stream Trusted advisor Remote diagnosis/repair drives higher tech utilization 5

6 Services are Rapidly Shifting to the Managed Services Model Managed Services are Growing For solution providers, becoming an MSP could mean the difference between evolution and extinction. - VAR Business January, 2006 Forecast to grow ~35% annually Source: Gartner group 2006, IDC 2005 The fastest growing part of IT management is the remote operation and management of networks and IT infrastructure. - Gartner January,

7 Why become a Managed Service Provider? 7

8 Managed Services can Deliver Compelling Benefits to Service Providers Increased and Predictable Revenue Contractual revenue model 39% of service providers list as top benefit 1 Trusted Advisor Solution selling 38% of service providers list as top benefit 1 Increased Operational Efficiency More efficient service delivery 21% of service providers list as top benefit 1 1 Doxus, Channel Partner IT Services, August

9 Managed Services can deliver substantial business value over Traditional Services Service Provider Benefits Category Traditional Managed Revenue Customer Relationship Business Operations Feast or famine with break/fix approach Tactically focused Reactive, time and materials, lower technician utilization rates Stable and predictable with fixed fee, recurring revenue Proactive monitoring and planning leads to becoming a trusted advisor (82% MSP clients renew contracts 1 ) Increased technician utilization, less truck rolls, higher customer reach (Services margins of up to 35% margin 2 ) 1 MSP Alliance Ahizer Rasheed, CEO of Netfusions and 24x7Managed.com in March 2007 Channel Insider.com 9

10 Managed Services help Create New Revenue Streams and Contain Costs Drive Revenue 1 2 Grow Services, Add Projects w/ Existing Customers Stabilize Existing Service Revenue 3 Target New Customers Manage Costs 4 Variable Costs Fixed Costs 10

11 More Small Business are Choosing Managed Services for Good Reasons 3 of the Top SMB Computing Priorities Are * Enhancing data security Data back-up and disaster recovery solutions Return on Investment Increased Security and Data Protection #1 reason SMBs choose managed services 1 Increased Productivity and Focus on Revenue 67% surveyed SMBs report productivity increases 1 Improved Budget Consistency 50% surveyed SMBs report IT budget savings 1 more than half of the companies surveyed saved 25 percent on their IT costs when they let someone else -- service providers or value added resellers (VARs) -- handle their technology with managed services these numbers are dramatically improved with the added benefits of predictable monthly costs and much more responsive service. - Jupiter Research, MSP Alliance 2006 survey 11

12 How do you become a Managed Service Provider? 12

13 Many Forms of Managed Services Security Monitoring & Management Storage Others Virus protection Firewall Spam blocking Intrusion detection Client Server Network Patch Repair Data backup Disaster recovery Compliance Print-on- Demand VOIP Hardware-asa-Service VPN 13

14 There are Different Models to Building Managed Services Hosted Deployment On-Site Deployment ISV MSP (Reselling Services) ASP (Hosts NOC) NOC MSP (Builds and hosts NOC) NOC SMB SMB SMB SMB SMB SMB MSP sells service to customers usually MSP branded Infrastructure is outsourced to the ASP (hosted NOC) MSP provides service and support through hosted tool MSP sells service to customers usually MSP branded ISV provides SW, updates & support to MSP MSP responsible for infrastructure build up/out 14

15 Which Model you Select depends on your Business Goals and Objectives Service Model Comparison Category Hosted On-Site Time-to- Market Initial Investment Margin Opportunity Customer Data KTBR (Keep the Business Running) days Up to 240 days Training, grow-asyou-go Lower due to hosting fees Shared liability. Who owns data? Lower easy integration Hardware, software, offerings, training, etc. Maximized Wholly owned data and data liability risk. Higher (NOC, maintenance, training costs) Stability Vendor reliable? Provider owned services infrastructure 15

16 How will your business change? Define Service Offerings Develop Business Processes Employee Roles and Skills Sales and Marketing Prioritize current customers Define service packages Services planning Services product marketing Services sales process and tools Value reporting process Product marketing skills Solution selling skills Demonstrating value Technical Support Collaborate with Sales and Marketing on: Service definition Cost of services Service package development Setup and training on tool Define service delivery process Define & redefine efficiencies Cross functional support vs. 1:1 Documentation role Demonstrating value 16

17 What is the best PC solution to build your Managed Services? 17

18 What Keeps you up at Night with your Managed Services? Key Concerns Maximizing Operational Efficiency Reducing truck rolls Maximizing technician utilization Improving update processes Doing More with Less Increase customer base Increase service levels Becoming a Trusted Advisor Gaining New Customers Overcoming objections Proving value Demonstrating cost savings 18

19 The Best Solution for Delivery of Managed Services Maximizing Operational Efficiency Doing More with Less Gaining New Customers Key Concerns Reducing truck rolls Maximizing technician utilization Improving update processes Increase customer base Increase service levels Becoming a Trusted Advisor Overcoming objections Proving value Demonstrating cost savings Intel vpro technology Benefits Reduce truck rolls with out-ofband remote diagnose and repair capabilities More accurate asset tracking and hardware information regardless of system state Improve remote patch updates and maintenance with remote power on/off capabilities Differentiated/targeted services Document value w/ Intel case study program Access to SMB proof points Exposure on msp.intel.com it doesn't matter where you are, you can do this remote management with vpro turning systems on and off. Marc Harrison, Silicon-East, Feb 2007 Intel Active Management Technology requires the computer system to have an Intel(R) AMT-enabled chipset, network hardware and software, as well as connection with a power source and a corporate network connection. Setup of Intel AMT requires configuration by the purchaser and may require scripting with the management console or further integration into existing security frameworks to enable certain functionality. It may also require modifications of implementation of new business processes. With regard to notebooks, Intel AMT may not be available or certain capabilities may be limited over a host OS-based VPN or when connecting wirelessly, on battery power, sleeping, hibernating or powered off. For more information, see 19

20 Optimized for Business Proactive Security Protect your PCs and your data infrastructure with built-in security technologies Built-in Manageability Reduce your support costs with builtin management technologies Energy Efficient Performance Improved performance with reduced power consumption with the Intel Core 2 Duo processor inside Improved Mobility for Notebooks Great battery life, smaller form factor, n support Intel Active Management Technology requires the computer system to have an Intel(R) AMT-enabled chipset, network hardware and software, as well as connection with a power source and a corporate network connection. Setup of Intel AMT requires configuration by the purchaser and may require scripting with the management console or further integration into existing security frameworks to enable certain functionality. It may also require modifications of implementation of new business processes. With regard to notebooks, Intel AMT may not be available or certain capabilities may be limited over a host OS-based VPN or when connecting wirelessly, on battery power, sleeping, hibernating or powered off. For more information, see See backup for more information. 20

21 PCs with Built-in Remote Maintenance Capabilities can help Reduce support cost and Increase Up-time with Remote Diagnostics and Repair Intel vpro technology-enabled Desktop PCs 1 2 PC unable to boot MSP management appliance alerts MSP PC sends an alert to MSP appliance MSP remotely reboots PC from standard OS image on MSP appliance 6 MSP technician at console diagnoses problem and repairs issue as appropriate Small Business Network Managed Service Provider Console at Remote Location MSP In-House Management Appliance MSP appliance creates a secure network connection between MSP and broken PC through firewall Firewall Firewall Internet Intel Active Management Technology 2.5 requires the platform to have an Intel AMT-enabled chipset, network hardware & software, and a corporate network connection. Corporate network connection is either cable or wireless inside company network. Intel AMT has limited capabilities over VPN when traveling outside of company network. Intel AMT capabilities are not available over wireless or on battery when the notebook is sleeping, hibernating, or powered off. 21

22 PCs with Proactive Security can help Push Security Updates to PCs even at night or powered off Intel vpro technology-enabled Desktop PCs 1 Managed Service Provider Console at Remote Location MSP In-House Management Appliance MSP appliance constantly reviews software versions on clients and compares to version on MSP console New security update on MSP console discovered by MSP appliance 2 Unique encrypted power-on command issued by MSP appliance to wake up PCs* Virus DAT file on PC updated and rebooted if necessary Encrypted power-off command sent to PC Small Business Network 4 MSP management appliance contacts MSP console and downloads security update Firewall Internet Firewall *Can be accomplished by script on MSP appliance or by secure connection with MSP console Intel Active Management Technology 2.5 requires the platform to have an Intel AMT-enabled chipset, network hardware & software, and a corporate network connection. Corporate network connection is either cable or wireless inside company network. Intel AMT has limited capabilities over VPN when traveling outside of company network. Intel AMT capabilities are not available over wireless or on battery when the notebook is sleeping, hibernating, or powered off. 22

23 Where can you get started? 23

24 General Resources Intel msp.intel.com Whitepapers, demos, solution briefs Whitepapers, case studies, demos, ROI calculator MSP Partners MSP Community - Training, product overviews, information sharing CompTIA MSP Alliance Professional association - events, webcasts, podcast SMB Nation Consultant association workshops, conferences, articles 24

25 25

26 Legal Disclaimers Copyright 2007, Intel Corporation. All rights reserved. Intel, the Intel logo, Intel. Leap ahead., the Intel. Leap ahead. logo, Centrino, the Centrino logo, Intel Core, Core Inside, vpro, the vpro logo, Intel SpeedStep, Pentium, Pentium Inside and Celeron are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. Intel Active Management Technology requires the platform to have an Intel AMT-enabled chipset, network hardware and software, connection with a power source, and a network connection. Other names and brands may be claimed as the property of their respective owners. 26

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