The response to the MSPA's announcement of Managed Services Professional Liability Insurance has been overwhelming. This low-cost professional liability insurance program offers advanced protection for MSPs and is available exclusively to MSPAlliance members. The coverage is underwritten by Lloyd’s of London and brokered by Hilb Rogal & Hobbs (HRH).
The MSPAlliance Professional Liability Insurance™ program offers a comprehensive errors and omissions coverage for claims made due to alleged negligence in the performance of services and provides numerous value-added coverage features including:
A broad definition of “Insured”
A broad definition of “Technology Services”
Intellectual property coverage (copyright, trademark)
Multi-media content coverage (libel, slander, defamation, virus transmission), and
Low, low pricing for members of the MSP Alliance
The MSPA also offers additional coverage options for Network Security and Privacy, General Liability, Directors and Officers and Employment Practices Liability coverages. Anybody interested in recieving a price quote or an application should contact.
888-850-6772 or info at mspalliance.com
Friday, May 23, 2008
Wednesday, May 21, 2008
Lessons Learned from the Boston Summit
Another great Managed Services Summit is behind us and I learned a lot, as usual. One of the biggest differences between Boston and Atlanta (held only a short while ago) is the increased sense of optimism amongst the attendees. Atlanta had a noticeable hint of reluctant acceptance of the economic status and its affect on managed services.
In Boston, however, I did not sense this at all. Instead, there was a sense of unity I have never experienced at our events (or I should say I have never experienced as much unity at our events). The members were united in their common goal of making the managed services profession a better place and this commonality was quite tangible to me.
This was our first official MSPAlliance event in New England despite the regional focus, we still had MSPs from as far as Lonon and Puerto Rico. We had a great panel discussion led by Chris Loringer, Editor at Business Solutions Magazine. Perhaps the most moving part of the entire Summit was Greg Donovan's keynote address on Tuesday morning. Greg challenged the membership to always strive to improve their service to clients and encouraged MSPs to seek accreditation.
At one point in the conference a gentleman came up to me and asked for help as he was a new MSP just getting started. After referring him to another more mature MSPA member to talk to I felt a sense of immense pride as one MSP transferred knowledge to another MSP. After all, MSPs helping MSPs is what makes this profession great.
In closing, I felt better after this conference than I have felt for the last 6 months. While the ongoing economic issues may still pose problems, the state of the managed services profession remains strong.
In Boston, however, I did not sense this at all. Instead, there was a sense of unity I have never experienced at our events (or I should say I have never experienced as much unity at our events). The members were united in their common goal of making the managed services profession a better place and this commonality was quite tangible to me.
This was our first official MSPAlliance event in New England despite the regional focus, we still had MSPs from as far as Lonon and Puerto Rico. We had a great panel discussion led by Chris Loringer, Editor at Business Solutions Magazine. Perhaps the most moving part of the entire Summit was Greg Donovan's keynote address on Tuesday morning. Greg challenged the membership to always strive to improve their service to clients and encouraged MSPs to seek accreditation.
At one point in the conference a gentleman came up to me and asked for help as he was a new MSP just getting started. After referring him to another more mature MSPA member to talk to I felt a sense of immense pride as one MSP transferred knowledge to another MSP. After all, MSPs helping MSPs is what makes this profession great.
In closing, I felt better after this conference than I have felt for the last 6 months. While the ongoing economic issues may still pose problems, the state of the managed services profession remains strong.
Tuesday, May 20, 2008
MSPA Board hard at work
Some people may wonder how all the great programs and initiatives get accomplished at the MSPAlliance; it is because of the the dedication and hard work of the MSPAlliance board.
Friday, May 16, 2008
Shred that data
This story was really scary, especially when you consider how many individuals and businesses don't have a policy for securely destroying data on hard drives which are no longer used.
This is a story of a race car driver whose hard drive found its way into the hands of a person who tried to sell the data to the press. While the person did not steal the data they did wind up with the actual hard drive and tried to sell it. It kind of makes you wonder about all those hard drives you've thrown out over the years and how much data is still residing on it.
If you are a MSP you may want to consult with your clients and help them develop a data destruction plan for all their hard drive and removable storage devices.
This is a story of a race car driver whose hard drive found its way into the hands of a person who tried to sell the data to the press. While the person did not steal the data they did wind up with the actual hard drive and tried to sell it. It kind of makes you wonder about all those hard drives you've thrown out over the years and how much data is still residing on it.
If you are a MSP you may want to consult with your clients and help them develop a data destruction plan for all their hard drive and removable storage devices.
Tuesday, May 13, 2008
Process without People
For many years I've been hearing about ITIL (Information Technology Infrastructure Library) and its healing powers for whatever ails the modern IT department. ITIL, for those of you not in the know, is an IT management process that started in England and has made its way throughout the world with a mixture of results.
In a recent Techworld.com article the author talks about how ITIL is not always met with fanfare or praise. In fact, an IDC analyst states that ITIL will actually cost the company more money by requiring more staff and other resources. While this may seem a bit odd to some, it is important to understand why this statement is true and why it actually bolsters the case for managed services.
In order to implement ITIL (these are now my opinions, not the IDC analyst's) the company needs to have enough IT staff in order to document the processes and see that they are executed properly. It is important to understand that ITIL, while an important step in bringing IT management under control, is not the only component. Without the right human talent, tools, and leadership, no process in the world will run an IT department.
For any company that is reading this and wondering if ITIL (or any other IT process) will solve your IT management problems, don't discount the other necessary components in this equation.
In a recent Techworld.com article the author talks about how ITIL is not always met with fanfare or praise. In fact, an IDC analyst states that ITIL will actually cost the company more money by requiring more staff and other resources. While this may seem a bit odd to some, it is important to understand why this statement is true and why it actually bolsters the case for managed services.
In order to implement ITIL (these are now my opinions, not the IDC analyst's) the company needs to have enough IT staff in order to document the processes and see that they are executed properly. It is important to understand that ITIL, while an important step in bringing IT management under control, is not the only component. Without the right human talent, tools, and leadership, no process in the world will run an IT department.
For any company that is reading this and wondering if ITIL (or any other IT process) will solve your IT management problems, don't discount the other necessary components in this equation.
Thursday, May 8, 2008
Who Controls Managed Services Pricing?
This article got to me, mainly because I don't like to see companies bullied around. Now, when a company like Dell does something as inconspicuous as publish its managed services pricing I have to wonder why. To be honest, I know why they did it. My real question is why are so many people playing into their hands? Let's take a closer and more honest look at the situation.
Dell is a relative newcomer to the managed services world. They bought themselves a few technology tools and presto, they are calling themselves a MSP. Fine, let's assume this is true. Just because Dell (or any MSP for that matter) decides to publish their pricing should not make an ounce of difference to any other MSP. In this specific regard, Dell is absolutely right. Don't worry about Dell making a downward plunge in pricing. It shouldn't matter at all to any other MSP how another MSP prices their services.
Now, what should matter to every MSP is whether Dell insists on selling its managed services direct to the end-user. If Dell, or any other company for that matter, insists on a direct end-user play and wants the MSPs to be a faithful channel for their other products, well, that's just pushing things a little too far.
Dell is a relative newcomer to the managed services world. They bought themselves a few technology tools and presto, they are calling themselves a MSP. Fine, let's assume this is true. Just because Dell (or any MSP for that matter) decides to publish their pricing should not make an ounce of difference to any other MSP. In this specific regard, Dell is absolutely right. Don't worry about Dell making a downward plunge in pricing. It shouldn't matter at all to any other MSP how another MSP prices their services.
Now, what should matter to every MSP is whether Dell insists on selling its managed services direct to the end-user. If Dell, or any other company for that matter, insists on a direct end-user play and wants the MSPs to be a faithful channel for their other products, well, that's just pushing things a little too far.
Tuesday, May 6, 2008
Master Service Agreements
The master service agreement for MSP's defines the terms and conditions of the relationship between the MSP and its client related to all managed services and project based work. There are several critical provisions that are necessary to protect the MSP's legal rights in a master service agreement. The indemnification provision of the master service agreement is one of the most frequenty negotiated by MSP's and their clients.
The indemnification provision of a master service agreement sets forth the risks that each party will be undertaking in the event of a claim or loss arising out of or relating to the services being provided. The indeminication section of a master service agreement frequently will say "MSP agrees to defend, indemnify, and hold customer harmless for any and all claims . . . ." End-users frequenly seek broad indemnification language from the MSP defining the scope of claims covered as broadly as possible. The MSP should be careful not to assume legal risks that can be adverse to its business in the event of a claim by it customer or a third-party. We recommend that all MSP's carry professional liability insurance and that the indemnity provisions in the master service agreement are carefully tailored to the coverages provided under the insurance contract.
For example, if the MSP has Managed Service Professional Liability insurance, the indemnity provision in the MSP Master Service Agreement should be drafted so the MSP agrees to contractually provide the same indemnities that the insurance company covers. By tailoring the indemnification to the language in the professional liability insurance, the MSP is able to offer broad indemnification to its clients without undertaking risks for which insurance has not been obtained.
For more information about master service agreements, please visit http://www.scottandscottllp.com/.
The indemnification provision of a master service agreement sets forth the risks that each party will be undertaking in the event of a claim or loss arising out of or relating to the services being provided. The indeminication section of a master service agreement frequently will say "MSP agrees to defend, indemnify, and hold customer harmless for any and all claims . . . ." End-users frequenly seek broad indemnification language from the MSP defining the scope of claims covered as broadly as possible. The MSP should be careful not to assume legal risks that can be adverse to its business in the event of a claim by it customer or a third-party. We recommend that all MSP's carry professional liability insurance and that the indemnity provisions in the master service agreement are carefully tailored to the coverages provided under the insurance contract.
For example, if the MSP has Managed Service Professional Liability insurance, the indemnity provision in the MSP Master Service Agreement should be drafted so the MSP agrees to contractually provide the same indemnities that the insurance company covers. By tailoring the indemnification to the language in the professional liability insurance, the MSP is able to offer broad indemnification to its clients without undertaking risks for which insurance has not been obtained.
For more information about master service agreements, please visit http://www.scottandscottllp.com/.
MSP Service Level Agreements
MSP's need service level agreements that help acquire new customers, retain existing customers, and mitigate legal risks in the event that the relationship ends badly. Today more than ever, customer facing contracts such as service level agreements are critically important to the MSP's success. We typically suggest that our clients use a Master Service Agreement to deal with terms and conditions applicable to the customer relationship for all services and check list service level agreement describing the managed services available. Clear descriptions of the scope of managed services being offered is critical.
The MSP's client is provided the check-list with all offerings and given the option to clearly define the scope of the engagement by opting in or out of specific service offerings. The check-list approach to MSP service level agreements is a valuable customer acquisition tool as it serves the dual purpose of clearly defining the scope and demonstrating the level of effort and value of the services being proposed. The service level agreement can also be a customer retention tool because the MSP and its customer have a clear score card for how the MSP performed under the contract.
Finally, because the check-list approach to service level agreements cleary defines the scope of the services being offered, in the event of a dispute, the contract will be more clear offering a risk mitigation benefit to the service provider. The check-list approach to the service level agreement can be effective at attracting new clients, retaining existing clients, and mitigating legal risks. For more information please visit http://www.scottandscottllp.com/
The MSP's client is provided the check-list with all offerings and given the option to clearly define the scope of the engagement by opting in or out of specific service offerings. The check-list approach to MSP service level agreements is a valuable customer acquisition tool as it serves the dual purpose of clearly defining the scope and demonstrating the level of effort and value of the services being proposed. The service level agreement can also be a customer retention tool because the MSP and its customer have a clear score card for how the MSP performed under the contract.
Finally, because the check-list approach to service level agreements cleary defines the scope of the services being offered, in the event of a dispute, the contract will be more clear offering a risk mitigation benefit to the service provider. The check-list approach to the service level agreement can be effective at attracting new clients, retaining existing clients, and mitigating legal risks. For more information please visit http://www.scottandscottllp.com/
Monday, May 5, 2008
The MSP Parable
There was once a car company that had a dream of becoming an efficient, scalable, and profitable company. This company knew that if it could just get a handful of clients that life would become very easy and the money would begin to flow.
One day, the phone rang and a client was on the other end asking the company to build a car. The manufacturer was ecstatic. After getting the technical specifications the company went about architecting the perfect solution. The engineers were put to work, designers created the blueprints for the car, and the date was set for delivery. Some weeks later, the car company proudly rolled out of its factory a brand new car to the great pleasure of the client. The client was happy, and so was the manufacturer.
A few weeks later, another client came knocking and the company was once again asked to build a car. Once again, the engineers were asked to design the car, the blueprints were created, workers were assembled and work began on this 2nd car. News of the car company's prowess and design expertise grew. Soon, many eager clients were wanting a car of their own. However, just as dreams of success and riches began to become a reality, a different form of reality began to sink to the company.
As the line of clients began to grow, the company quickly realized that it would not be able to create enough cars quick enough to satisfy demand. In fact, several clients began to withdraw their offers when the company could not make the cars fast enough. Panic set in and the company leadership called a meeting to fix the problem of inefficiency that was now endangering their growing business.
At the meeting, a young engineer suggested a radical new approach to building cars that would not only help the company make more money, this idea would help the company deliver more cars to more clients faster. Instead of designing each car for each client the engineer suggested the company design one car for all their clients and simply use that design over and over again. While there were sure to be a few clients who did not want the single car design, the company decided to implement a policy whereby if someone wanted a special design that was not mass produced the company would agree to build the car only if the client was willing to pay a higher price.
The company executives decided something needed to be done and so the single car design process was implemented and pretty soon everything changed for the company. More cars were being built than at any time in the company' s past. More importantly, the clients were receiving their cars must faster than before. As a result, more clients were happy and the company was making more money than they could count. Whenever a client made a special request (and they frequently did), the company no longer had to feel compelled to acquiesce. Instead, special car requests were contemplated only when the client showed a serious desire for the request and displayed the ability to pay for the project. After a short while, the company decided to create a new division just for creating special design cars that were not to be mass produced.
Now, for the moral of the story. If you are a MSP and you are building a new car from scratch for every client you acquire, how efficient do you really think you can be?
One day, the phone rang and a client was on the other end asking the company to build a car. The manufacturer was ecstatic. After getting the technical specifications the company went about architecting the perfect solution. The engineers were put to work, designers created the blueprints for the car, and the date was set for delivery. Some weeks later, the car company proudly rolled out of its factory a brand new car to the great pleasure of the client. The client was happy, and so was the manufacturer.
A few weeks later, another client came knocking and the company was once again asked to build a car. Once again, the engineers were asked to design the car, the blueprints were created, workers were assembled and work began on this 2nd car. News of the car company's prowess and design expertise grew. Soon, many eager clients were wanting a car of their own. However, just as dreams of success and riches began to become a reality, a different form of reality began to sink to the company.
As the line of clients began to grow, the company quickly realized that it would not be able to create enough cars quick enough to satisfy demand. In fact, several clients began to withdraw their offers when the company could not make the cars fast enough. Panic set in and the company leadership called a meeting to fix the problem of inefficiency that was now endangering their growing business.
At the meeting, a young engineer suggested a radical new approach to building cars that would not only help the company make more money, this idea would help the company deliver more cars to more clients faster. Instead of designing each car for each client the engineer suggested the company design one car for all their clients and simply use that design over and over again. While there were sure to be a few clients who did not want the single car design, the company decided to implement a policy whereby if someone wanted a special design that was not mass produced the company would agree to build the car only if the client was willing to pay a higher price.
The company executives decided something needed to be done and so the single car design process was implemented and pretty soon everything changed for the company. More cars were being built than at any time in the company' s past. More importantly, the clients were receiving their cars must faster than before. As a result, more clients were happy and the company was making more money than they could count. Whenever a client made a special request (and they frequently did), the company no longer had to feel compelled to acquiesce. Instead, special car requests were contemplated only when the client showed a serious desire for the request and displayed the ability to pay for the project. After a short while, the company decided to create a new division just for creating special design cars that were not to be mass produced.
Now, for the moral of the story. If you are a MSP and you are building a new car from scratch for every client you acquire, how efficient do you really think you can be?
Saturday, May 3, 2008
Say it ain't so
The sight of a Geek Squad van at MSPAlliance HQ was too good to pass up. And no, I haven't fired our MSP in favor of Geek Squad. I just so happened to have acquired a new television and needed someone to install it (since when did TV's become so complicated?).
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