Niraj Tolia, CEO of Alcion, enters the MSP Zone.

The deployment of AI in MSP backup tools addresses several critical challenges in the managed services industry. By integrating AI, MSPs can automate routine and repetitive tasks, such as system monitoring, patch management, and backups, which significantly reduces human error, enhances efficiency, and optimizes resource allocation. This automation leads to cost savings and improved service delivery, which is essential in a competitive market where talent is scarce and operational efficiency is paramount.

The adoption of AI was driven both by MSPs' desire to stay ahead of technological advancements and by internal motivations to improve service quality and reliability. AI has made a substantial positive impact on MSPs and their service delivery by enabling proactive issue resolution.

Niraj discusses his thoughts around AI in data backup, what MSPs need in a modern-day backup solution, why he decided to enter the legacy MSP backup marketplace, and how AI will empower MSPs to succeed.

In the evolving landscape of IT services, the distinction between Managed Service Providers (MSPs) and other IT service models, like break/fix or security consultancy, has become increasingly important. 

MSPs offer a comprehensive suite of services that manage and assume the responsibility of a defined set of day-to-day management services for their clients, proactively and under a subscription model. This is in contrast to break/fix services that operate reactively, or security consultants who may focus solely on specific aspects like penetration testing. 

The confusion arises when companies misrepresent their services as managed services, which can lead to a misunderstanding of the value and scope of what an MSP truly offers. It's crucial for businesses to recognize the signs of a genuine MSP, such as a proactive approach to IT management, a broad range of services beyond just security, and a partnership mentality rather than an adversarial one. 

Understanding these differences can help businesses make informed decisions when choosing an IT service provider that aligns with their needs.

I had the opportunity to play golf with an executive who shared some very insightful perspectives about risk, cyber insurance, and MSPs. The interaction was completely by accident but the information I got was invaluable.

There is a lot of wiggle room when it comes to knowledge and implementation of compliance in a managed services environment. More precisely, MSPs must understand and operate with accurate knowledge of the difference between preparing for an audit or certification and the testing or auditing of an environment. Both components are important, but the MSP is more suited to one and not the other.

Here's what MSPs need to know.

For a lot of MSPs, trying to convert reactive (i.e., break/fix) clients into proactive (managed services) clients can be a struggle. No matter how hard you try, those reactive clients just won't budge.

Fortunately, there is a pretty effective technique you can use to begin to impress upon your reactive clientele all the benefits and reasons they would be better off as a managed services client.

Step 1: Communication. You have to have a conversation with your reactive clients about everything. Times are changing. Everyone is taking cybersecurity more seriously these days. Explain how reactive IT management isn't IT management at all; it's IT disaster cleanup. And, it can get pretty ugly. The point is, talk to your clients and let them know what's about to happen.

Step 2: Put your reactive clientele through some sort of security baseline. Don't get fancy. You can use something like the CIS framework. CIS does not have a certification so you just will be assessing the client's existing controls, policies, and procedures against the CIS controls. By the way, this technique can also be used quite effectively for all new managed services prospects.

For clients below the CIS level, you can let them know where the gaps are, that you can fix those gaps, but that a managed services relationship is what is needed.

Finally, if the reactive client still won't budge, you can raise your rates due to the provable increase in risk they represent to your MSP practice.

 This technique is a combination of compliance baseline plus risk-based pricing, and it can be a very powerful and persuasive tool in getting reactive clients to understand the modern cyber world in which we live. 

Ep 276 - The term EBITDA is not something a lot of MSPs fullly understand or use regularly. As a financial tool, it is worth knowing how it is used and why. But, should you use EBITDA as a metric for managing your MSP practice? Maybe, maybe not.

To answer this question, we must define EBITDA, look at how it is used within general accounting, and more specifically how it is used within MSP M&A and investing. Only then can you know whether EBITDA is something you should use regularly as a guidepost for running your MSP practice.

Recently, at the MSPAlliance Inspire meeting, I witnessed something I've never seen before, something I'm now calling the "great MSP reset." This reset is an accumulation of several different things happening at roughly the same time and I think it bodes well for the future of the managed services profession.
Here's what I witnessed.

These activities, taken in their totality, represent a very clear sign that there is a lot of positive change taking place in the managed services profession.

A lot of MSPs spend the majority of their time focused on revenue growth, and for good reason. If you're not growing, you're shrinking.

Revenue Mixture and Why It's Important