Defining value is key to unlocking fresh MSP business, says Kaseya

Securing fresh customers has always been a challenge, but it is becoming increasingly difficult for many managed service providers (MSPs) facing the current competitive market.

Kaseya’s State of the MSP report saw the channel place landing new logos as its main concern, with pressure increasing on those hoping e a pitch will hit the mark if it concentrates on a technology rather than business outcome approach.

Dan Tomaszewski, executive vice-president of channel at Kaseya, said sales and marketing had been a challenge for the MSP community for years, with the latest challenges set against that background.

“MSPs said it’s getting really hard to acquire a customer. It tells me that we’re getting at bats, but we’re not winning the deal,” he added. “They’re starting to get in the door more, but now they’re losing when they’re in the boardroom.”

The report stated that with competition intensifying, some channel players are missing out on gaining customers as they are not showing how they could add value.

“They say competition is intensifying,” said Tomaszewski. “Buyers are demanding more measurable proof and not just promises like ‘We’re the fastest IT support, we’re the best around.’ Buyers are wanting actual, tangible proof. That’s where I believe, when you go back to acquiring as the top challenge, MSPs are struggling with delivering the value.”

He added that MSPs needed to be ready for the question of why they deserved to be chosen ahead of a competitor and to be able to talk about how they could deliver demonstrable value: “The MSPs that are doing that are winning and they’re growing. The MSPs that can’t go in and do that are finding it is harder and they are shrinking.”

Artificial intelligence (AI) emerged as an area where making the effort to differentiate could pay off, with many MSPs yet to really get behind the technology.

“Only 13% of the MSPs that responded in the survey said they’re generating meaningful revenue with AI,” said Tomaszewski. “That’s a big gap, but almost every one of their customers, whether they’re using it in Copilot, ChatGPT, Gemini or the thousands of SaaS applications that have AI built in.”

Tomaszewski said AI was a technology that was both sold and supported by MSPs, as well as used internally to help drive efficiencies and productivity gains in their own businesses. Hesitancy around adopting it themselves was undermining some MSP sale pitches.

“A lot of MSPs are struggling because they haven’t implemented it for themselves yet first. How do I go out to a customer and sell a service that I’m not even doing for myself?” he said.

Kaseya has long been a champion of the MSP community. Tomaszewski said that the company would be sharing the report to flag areas for improvement and provide peer-to-per opportunities for partners to share best practice.

“More MSPs are turning to peer groups. I get the opportunity of running that for us,” he added. “It’s a case of locking your feet down and figuring out why we’re winning or not winning. If you’ve been running the same play, maybe it’s time to change the play.”