Even More Good News About Managed Services

It almost can't get any better than this. In Computerworld today there is even more evidence that managed services will grow despite a lagging economy. Just thought all of you out there could use some good news for a change :)

More Good News About IT Spending

While a slowdown in IT spending growth would normally be a bad thing, taken in context of today's economic malaise I would say this is about as good a piece of news as we could ask for. Several recent studies by a few analyst firms have indicated that 2009 IT spending would experience a slowdown in growth, but not see a decline.

For those of you in managed services this is probably nothing new since you already are experiencing an increase in your business as clients begin to offload IT management to you. However, this new report does validate what you are experiencing and provides even more evidence that IT management has left the realm of the "experimental" and entered the world of "necessity".

For an abysmal economy to barely shake the IT spending forecasts of several of the major analyst firms is quite a testament to the strong foundation upon which the managed services profession is based. Get ready for a busy 2009!

Smart IT Services passes MSAP exam

A few months ago Smart IT Services passed their MSAP exam.
Congratulations to the entire team there in Sterling Heights, MI.

MSAP Goes to Ireland

In a time when so many small companies are entering the MSP profession the importance of maintaining standards and best practices. During a recent trip to Ireland I visited the offices of PFH, a MSP based in Cork. At the entrance of the NOC area I saw this sign and remarked to myself that here was a company that has modeled its NOC after the Managed Services Accreditation Program (which is a good thing since I was there for the MSAP exam).

The point is, the MSAP standard has now become a truly recognized international standard. Particularly when companies in Ireland can now trust that their Managed Services Provider is abiding by accepted standards of security and IT practices. It was a great experience to the MSAP standard being practiced outside North America.

My congratulations to PFH on building a great managed services practice!

Credit Crunch and Managed Services

Two items that are worthy of mention today. First, Forrester is reporting that the global economy is creating a 'perfect storm' for the managed services sector. This is nothing new for MSPAlliance members but it is always good to see external sources verify what the industry is seeing.

The other bit of news is that large vendors are cutting their credit to the channel. Now some of you may be thinking that this is bad but there is some good that will come out of it. Hardware vendors are being squeezed right now. Reducing credit to channel companies is the first step in minimizing any potential loss due to defaulting end-users. So, what does this mean for the MSPs?

Nothing. If MSPs are being squeezed by reduced vendor credit, then alternative sources of funding will have to be cultivated (for those MSPs out there who don't sell product, please ignore this blog). Local banks, credit unions, distributors, and other lendors are out there and ready to do business, particularly if it is with one of the only thriving sectors of the economy. Even the MSPAlliance Leasing Program has seen a marked uptick in inbound applications for leases.

In closing, I know the market is very painful right now but managed services is doing quite well. Keep on doing what you're doing and help as many businesses as you can. That's the best thing anyone could expect from a MSP today.

"Outsourcing" outlook positive

This article from CIO Update may not use the term managed services but there should be no mistake that the 2009 outlook for managed IT services is looking very positive. While these end-user focused reports are good news (because they are preparing end-user businesses for the idea of seeking outside help for their IT management) the MSP community needs to educate their clients that BPO or generic outsourcing should never be mistaken for managed services.

More and more companies are going to be looking for ways to cut costs in the new year and one of the best ways they can achieve predictability in their IT expenses is to engage a MSP. If you are not having this conversation with your clients do so today!