Why MSPs must ignore their instincts and embrace data
If 2020 has shown businesses anything, it's the value of their data. Those who have survived or even thrived in the last year did so because of their ability to use their data.
Yet businesses have been severely and regularly cautioned of what will happen if they mistreat it -opening themselves up to cyberattacks, breaching their industries' data governance and regulations, or breaking data privacy laws.
Many firms lack the resource to leverage their data at all, never mind doing so while ensuring full data safety.
However, this problem is an opportunity for MSPs.
MSPs need to transform themselves from supportive ‘maintain and secure' technology partners to experts who understand the complexities of data, who can advise how their individual customers can use it best and how they can ensure every data interaction is safe.
More than an opportunity, this is also a necessity. MSPs that don't adapt will soon be outpaced by those whose customers are already reaping the benefits of a more strategic partner. MSPs need to expand their skills and horizons, and quickly.
The limited ‘Technology Down' mindset
MSPs normally start conversations with customers by looking at their technology - what they're using, how it's installed, when to patch and backup and cost per seat.
This is the ‘technology down' world that most MSPs come from and understand best. It's usually also the path of least resistance - it's how the customer perceives the MSP's role, and this mutual understanding makes closing the deal easier.
But playing that role restricts an MSP's own immediate and future potential.
By only maintaining technology, you're limiting the value you can offer. The real worth to your customers comes from showing them the way to compliantly and securely use their data to drive innovation, commercial opportunities, and competitive advantage. Technology is just the transport system.
The ‘Data Up' Approach
The ‘data up' approach is clearly more strategic, beneficial, and valuable to the customer than the usual ‘technology down' approach. It follows three steps.
- Map the data workflows: Firstly , MSPs need to really understand the customer's data. How it's captured, where it resides, how it flows through the organisation, who has access to it, how it's being used, what datasets are available and how it'll eventually be removed. Seeking this visibility is a defining trait of a data services provider and is valuable in itself.
- Show the customer their weaknesses: This visibility is valuable because it'll highlight vulnerabilities. And once a suitably-skilled service provider knows the problems, they can fix them. The traditional network diagram - commonly seen in a ‘technology down' approach - doesn't show where to increase efficiency and productivity, remove costs, strengthen security, or close governance gaps. But data workflows do.
- Then fix: All of these vulnerabilities and inefficiencies are opportunities for an MSP. Start by making the data safe - not just secure. This data management discipline will create a solid foundation for any of the more adventurous improvements, such as automation or using datasets that the data workflow analysis revealed for machine learning.
Final thoughts
It isn't easy to become a valued data advisor. Doing so goes against the instincts and decades-long experience of the MSP industry and will also be challenging from a customer point of view. Many won't expect this approach from an MSP, normally leaving these practices to a systems integrator or consultant. But customers will already see the MSP as a trusted advisor, from a technology standpoint. This is the open door - MSPs must change their customers' perceptions by presenting them with more opportunities and capabilities.
MSPs will of course need to develop new skills. They'll still need cloud and infrastructure skills and a support desk because data availability, security and productivity are key. But they now need new expertise in data science, compliance and privacy best practices and regulation. Ideally, developing their current staff as well as hiring in new individuals.
The costs of acquiring these new skills could be high but by sticking to technology services only, MSPs will then miss out on the opportunity. The world has quickly woken up to the value of data and want to make progress. MSPs just have to be in a position to serve them.
Julian Box is CEO of managed data services provider Calligo