Is your MSP addicted to the deal?

Our latest thought leadership piece by Group Revenue Director Andy Portlock, has been published on Digitalisation World, and it tackles a question we think every business should be asking of its IT provider: is the advice you’re getting shaped by what your business needs, or by what generates the biggest invoice?

Read the full article on Digitalisation World: Addicted to the deal: why the MSP model is broken and how we could fix it

A model built for a different era

The traditional managed service model took shape at a time when technology changed in predictable cycles. Servers reached end of life every five or seven years, customers budgeted for a refresh, and a sizeable project followed. That rhythm made sense back then, but it no longer reflects how technology works today. Security controls, compliance requirements and cloud platforms now evolve constantly, which means keeping an environment secure and fit for purpose calls for regular, ongoing change rather than a big transformation every few years.

The problem is that many MSPs still treat that change as a separate project with a separate bill. When every improvement needs its own budget, businesses end up making technology decisions based on what they can afford this quarter rather than what they actually need, and important work gets pushed back again and again.

Why the habit is hard to break

In the article, we look at why this model has persisted even though it isn’t working well for customers or for MSPs. Project revenue has become built into the economics of many providers, and sales incentives that reward large one-off deals can pull recommendations in a direction that doesn’t always serve the customer. We also explore the vicious cycle that follows when needed work is delayed: an ageing environment becomes less reliable, confidence in IT drops, the appetite to invest falls further, and the relationship between provider and customer starts to break down.

What a better model looks like

The piece argues for rethinking what a managed service is there to do. When professional services, project delivery and ongoing improvement are built into the service itself, businesses benefit from predictable costs, continuous rather than stop-start progress, and technology that keeps pace as the organisation grows, changes direction or adopts new ways of working. It turns a transactional arrangement into a genuine partnership.

This is the thinking behind ASCEND, our all-inclusive IT service agreement. ASCEND brings consultancy, project work, innovation and always-on security together for one simple per user cost, so improvements can happen when your business needs them instead of waiting for the next budget cycle.