MSPs versus End-user enterprises as customers

During a recent discussion with a 3rd party, I was asked the question “why don’t others have the same success with MSPs?” Then, I was asked the question “If your MSP business is so successful, then why don’t you just focus there?”

Interesting questions and I thought worth a quick discussion.

Why are other monitoring companies not successful with MSPs?

We are not claiming that we are the only game in town, but competition with MSPs comes from completely different companies than we compete with for corporate enterprise business. Most of the suppliers in this space are offering low-end solutions, because they are trying to reach the “mass market” of MSPs (estimated at tens of thousands in the US alone).

Nimsoft is several steps above this. Our product is a solution that can start small, but grow to be used in the largest, most complex of environments. In reality, the low end MSP-specific solutions are not competitive with us. For example, just last month, a very large MSP/Outsourcer selected Nimsoft as a replacement for their current monitoring solutions and as the partner of the future. This company has 65,000 devices under management.

So, smaller, ambitious MSPs can get in to Nimsoft easily and grow to become very very large, comfortable in the knowledge that they will never be lacking for scalability or feature set with their customers.

But, why don’t the big-4 compete in this space?

They try but, for Nimsoft to do business with MSPs, we changed our pricing completely, we changed our license agreements, we changed the way in which we compensate our sales executives, we changed the manner in which we approach the customer and so on. We changed almost everything from our corporate enterprise business in the way that we do business with an MSP. You have to realize that when we partner with an MSP, we are critical to their business and often times, we are dealing with the President of the company.

The big-4 just don’t get it and they are not flexible enough to “partner” rather than “sell”.

Why don’t we only do MSP business?

Simple, because by having end-user enterprise business from some of the largest organizations in the world, we are assured that our product meets the needs of the most demanding environments. Meetings the most demanding needs of end-users, means that we are well positioned to work with our MSPs on what those needs are, and help them to meet them also and learn from our experiences.

Seems simple? Well it is for us because we’ve done the work to understand these things.

But, I also understand how difficult this can be for companies that have never done it before or don’t have an open mind to new business models.

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