The term “win on the transition” has been a noteworthy concept in business discussions for several years, especially as industries navigate changes driven by innovation, economic shifts, and global events such as the COVID-19 pandemic.
In the managed service provider (MSP) sector, some companies have notably excelled by rapidly adapting to secure their clientele and facilitate digital transformation. Conversely, those slower to adjust have found growth more challenging.
Digital Transformation in the MSP Sphere
In recent times, digital transformation has been a key success driver for MSPs. By embracing change, many have enhanced their ability to protect customer data and improve service offerings. This proactive approach has enabled them to flourish, while their less adaptive counterparts face stagnation or slower growth.
Adapting to Pricing Changes
A pivotal transition looms for the MSP community with Microsoft's impending price increase on its Microsoft 365 services, effective March 1, 2022.
As most MSPs offer Microsoft 365, this price adjustment represents a critical juncture for these companies. The ability to manage this change will significantly impact their future trajectory.
Becoming a Trusted Advisor
The notion of becoming a "trusted advisor" has long been an aspirational goal among MSPs
The notion of becoming a "trusted advisor" has long been an aspirational goal among MSPs, and the upcoming Microsoft 365 price change presents an opportunity for MSPs to achieve this status.
By demystifying Microsoft’s complex licensing programs and offering informed recommendations, MSPs can align customer needs with the right plans, optimizing both protection and cost-efficiency.
Understanding MSFT 365 Licensing Packages
Microsoft 365 licensing packages comprise various features, many of which users are unaware of or do not fully comprehend.
These include Litigation Hold, auto-expanding email archive, and sensitivity labeling options. MSPs can capitalize on the current transition by becoming well-versed in these offerings, ensuring that customers select the appropriate features for their needs.
Opportunities Amid Change
The price shift benefits MSPs with the chance to re-evaluate MSFT 365 needs for their SMB customers, considering options like MSFT 365 for Business versus Enterprise, and comparing Basic, Premium, and Standard plans.
By efficiently navigating these options, MSPs can provide strategic insights that maximize functionality while maintaining cost-effectiveness.
Achieving Cost Efficiency
SMB customers increasingly depend on MSPs for guidance on software use and cost management
SMB customers increasingly depend on MSPs for guidance on software use and cost management. For instance, SaaS Alerts' SASI Report from June 2021 noted that many SMBs use Zoom with their MSFT 365 credentials, often unaware that MSFT Teams offers similar functionalities.
MSPs can leverage such insights to recommend more cost-effective solutions, like transitioning solely to Teams, mitigating the impact of the price hike.
Educational Initiatives for MSPs
Throughout February, SaaS Alerts is focused on educating MSPs about Microsoft 365 plans, feature comparisons, and pricing options. This initiative aims to equip MSPs with the knowledge to right-size customer plans, fostering their role as trusted advisors.
As part of these efforts, SaaS Alerts invites stakeholders to join its webinars on Microsoft 365 Price Increase scheduled for February 15th and 23rd. Participants will gain valuable insights and receive access to an MSFT 365 calculator designed to help navigate price increases and margin expectations.
“Win on the transition” is a term the author heard for the first time several years ago. The author has written about it and I have conducted numerous public presentations on the topic. Since then, they have observed companies both win and lose on “transitions” across various industries.
Some of these transitions are brought about by innovation, economic conditions, or, most recently, a worldwide pandemic. SAAS Alerts can all think of companies that have supercharged revenue and profits during COVID-19, while they have seen others wither away.
Digital transformation
Within the MSP industry, the author has witnessed some MSPs thrive in the last couple of years. They have adapted quickly to better secure their customers, and they have empowered digital transformation.
At the same time, other MSPs have been slow to evolve. As a result, they are either struggling or growing at a slower rate than their peers.
Change is Coming
How MSPs handle this price increase will prove to be a transition point for many
The author believes users are on the verge of another transition point in the MSP community. Over 90% of all MSPs resell Microsoft 365 and, in case users have not heard, Microsoft is implementing a price increase on 365 starting March 1, 2022.
How MSPs handle this price increase will prove to be a transition point for many.
Trusted advisors
For years, the term “trusted advisor” has been waved about in MSP circles as an aspirational title. While many have struggled to live up to this designation, MSPs are presented with an opportunity. They can become their customers’ “trusted advisors” with the impending Microsoft price increase that will affect most, if not all, MSP customers.
The MSFT licensing programs are very confusing and even most IT professionals have a difficult time understanding them. By understanding the new prices and the different plans, MSPs have an opportunity to right-size both the customers’ protection and their costs for the most widely used application in their stack.
MSFT 365 licensing package features
Several features are bundled into the different MSFT 365 licensing packages. Most people don’t even know or understand if they need them. Some of these features include:
- Litigation Hold
- Auto-expanding email archive
- Manual, default, and mandatory sensitivity in Office 365
- Sensitivity labeling for containers in Office 365
What the Price Increase Means for MSPs
Most SMB customers don’t understand whether they need MSFT 365 for Business, MSFT for Enterprise, or Office 365 for Enterprise. Beyond that, they will need to choose the Basic, Premium, or Standard versions of these products.
This price increase presents a great opportunity for MSPs to fully understand the differences in MSFT plans, including the features and costs associated with each plan. Most importantly, MSPs can determine how the customer can right-size functionality, protection, and cost.
Saves money
The foreign application most SMBs are logging into, with their MSFT 365 credentials, is Zoom
SMB customers expect thought leadership from their MSPs in understanding all of the software they use. They rely on MSPs to help them save money by eliminating redundant functionality across different products. In SaaS Alerts’ first SASI Report (SaaS Application Security Insights), released in June 2021, it found that the foreign application most SMBs are logging into, with their MSFT 365 credentials, is Zoom. But, SAAS and all know that MSFT Teams and Zoom do many of the same functions.
As an MSP seeking to be a trusted advisor, the author could use that information to propose that the customer discontinue using Zoom to help offset the MSFT price increase. Instead, the customer would use Teams, exclusively.
Comparisons, and pricing options
During February, SaaS Alerts is dedicated to better educating MSPs on the different MSFT 365 plans, feature comparisons, and pricing options to help every MSP right-size their customers’ protection and cost. The goal is to share practical insights to help every MSP become a trusted advisor and “win on the transition.”
To that end, SAAS Alerts invites users to join them for the Microsoft 365 Price Increase webinar on February 15th or February 23rd. In addition to gaining these insights, every attendee will receive access to our new MSFT 365 calculator. This calculator incorporates the price increases and it includes options for different margin expectations.
