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Managed Service Providers (MSPs) provide client organizations with outsourced IT. Similar to other business models, if MSPs can’t find a way to sustain client contracts and generate enough revenue to cover their costs, the business could collapse. To offset this possibility in 2019, more than 80% of MSPs have found subscription services to drive a portion of their revenue, as reported in Datto’s recent State of the MSP Report. “To keep revenue flowing, MSPs should consider expanding their portfolio with services they might not typically think to offer as a recurring service,” explained John Tippett, VP of Product at Datto.
As MSPs look to identify and provide core recurring services for their clients, a key consideration is the ability to deliver them profitably.
Identifying Sustainable Recurring Services
An ideal recurring service attracts new customers, generates additional revenue in the form of service sales, and helps the MSP improve efficiency in the delivery of their services. Of course, very few services offered by MSPs achieve all those benefits, but it’s important to realize some actually do. These services are often critical for organizations to grow from, and are therefore required by virtually every small to medium-sized business (SMB). When technology shifts and these fundamental services can be delivered in a new, more cost-effective manner, MSPs are in a prime position to benefit.
For organizations of all sizes, the need for directory services can be categorized as foundational. Traditionally, the identity provider has been a cost center for MSPs because of the on-prem implementation of the legacy solution, Microsoft® Active Directory®. Now, however, innovative MSPs are realizing that a shift to the cloud-based Directory-as-a-Service® platform provides opportunities for significant revenue and profit increase.
How JumpCloud Amplifies Revenue for MSPs
Streamlining multi-client management continues to be central to growth throughout the managed services industry. Through product-led design, JumpCloud centralizes identity and access control for any client from anywhere. Adding customers, introducing new services, providing professional consulting, increasing margins and efficiency — JumpCloud Partners are generating revenue while enabling their clients with modern, cloud productivity.
By Adding Customers
MSPs can leverage the Directory-as-a-Service platform to enable their clients to shift to the cloud, reach for digital transformation efficiencies, and increase network/cyber security. All of these benefits are critical to adding new customers and encouraging organizations to outsource IT infrastructure to MSPs.
By Introducing New Services
JumpCloud’s Directory-as-a-Service platform has enabled MSPs to offer new services that address managed security to compliance to endpoint protection. Because the cloud directory service touches virtually all aspects of an organization’s network, MSPs have a number of new revenue streams available to them.
By Enabling Professional Services/Consulting
Implementing JumpCloud with related capabilities can create significant professional services and consulting opportunities. These range from network deployments and management, cloud transformations, full disk encryption (FDE), security training, and more. For MSPs that end up becoming the complete outsourced partner for a client, the Directory-as-a-Service platform can help increase professional services projects.
By Leveraging Margin on JumpCloud Sales
Many MSPs rely on the monthly margin that JumpCloud’s platform offers them. The strong margins just continue to add up as MSPs deploy the platform to more and more customers.
By Increasing Efficiency
Through a Multi-Tenant Portal, MSP admins can easily and remotely manage their entire client base’s identity management needs. With strong automation capabilities including RESTful APIs, a PowerShell module, and a scaled UI, MSPs can save money and time while delivering enhanced security and productivity to their customers.
Contact the Partner Program
Top-rated MSPs leverage JumpCloud’s SaaS-based directory service to their advantage and generate significant revenue and profit from it. Check out the Partner Program today and contact JumpCloud’s MSP experts for more information on how to amplify your managed services business.
Learn More
The JumpCloud Partner program is dedicated to supporting MSPs and resellers, providing resources to streamline their Directory-as-a-Service, both for themselves and their clients. Check out our new Partner learning courses, where you can watch videos tutorials to learn how to leverage DaaS for your clients, how to sell DaaS to your clients, and our guide to selling as a Partner.
