In today’s fast-paced and technology-driven business landscape, it’s more important than ever for organizations to optimize their IT operations and stay ahead of the competition. This is why the managed services market is experiencing explosive growth, with more and more businesses turning to MSPs to provide a comprehensive suite of IT services tailored to their specific needs. As a result, the global managed services market was valued at $179.33 billion in 2021 and is expected to reach $393.72 billion by 2028. The highly saturated market showcases the need for differentiation to stand out.
The importance of differentiation
It has become increasingly difficult for VARs and MSPs to differentiate themselves. With over 1 million global information service providers, most of which offer Microsoft 365 products, there is often a significant overlap between offerings. A recent study determined that over 80% of VARs and MSPs offer the same services. As a result, VARs and MSPs need help to stand out in a crowded market and attract new clients. They must now focus on offering unique value propositions, such as specialized expertise in a particular industry or technology, personalized customer service, or innovative solutions that can solve specific pain points for their customers.
Ways to differentiate your services
If you are a VAR or MSP struggling to differentiate your services from the competition, there are several strategies you can employ to set yourself apart in the market.
- Become a thought leader
- Becoming a thought leader effectively allows VARs and MSPs to differentiate their services and establish themselves as experts in their field. By sharing their knowledge and expertise with potential clients, VARs and MSPs can build trust and credibility, increasing business opportunities. One way to do this is by publishing blog posts that offer insights and advice on industry trends and best practices. VARs and MSPs can also share their expert advice on local media outlets and podcasts to increase their visibility and reach a wider audience.
- Offer flexible pricing and packaging
- Pricing is a crucial part of MSP’s profitability and revenue streams. There is no “one-size-fits-all” model. Kaseya’s 2022 MSP Benchmark survey respondents indicated billing model data is relatively evenly distributed. Offering flexible pricing and packaging options can give MSPs an advantage in a competitive market. By tailoring pricing and packaging to fit their customers’ needs, MSPs can create more value for their clients and make it easier for them to do business.
| Predominant Billing Model for MSPS | All Respondents |
| Combination of per user and per device | 22% |
| Per user (all-in seat price) | 21% |
| Per device | 17% |
| Value-based (fixed fee subscription) managed services | 15% |
| Tiered bundles for managed services | 12% |
| A la carte | 11% |
| Other | 2% |
- Invest in marketing
- Marketing is a valuable aspect of any business; VARs and MSPs are no different. Create content that is useful for your ideal customers and that helps your current customers get more out of your offering.
- Expand your product offerings
- Consider expanding your product offerings to differentiate your services and provide more value to your customers. One way to do this is by adding a virtual office integration to your product suite. With more businesses adopting remote and hybrid work, virtual office integrations offer a great way to upsell current offerings while opening up recurring revenue streams. In addition, a 2021 survey identified managing remote workers as one of the biggest challenges for MSP clients.
Communicating your differentiation
It’s not enough for VARs and MSPs to differentiate themselves—they must also effectively communicate their unique value propositions. This can be achieved through targeted marketing efforts, including social media campaigns, email newsletters, and website content highlighting their expertise and showcasing what sets them apart. By taking the time to understand their clients’ unique needs and challenges, VARs and MSPs can offer tailored solutions that provide maximum value.
VARs and MSPs can also leverage customer testimonials and case studies to demonstrate their differentiation in action. These resources can be used to showcase successful projects and satisfied clients, providing evidence of a particular VAR or MSP’s value to a business.
Differentiate your offerings with Frameable Spaces
In today’s remote work environment, businesses rely on digital collaboration tools to stay connected. As an MSP or VAR, you have the opportunity to differentiate your offerings and stand out from the competition by providing innovative solutions that enhance the remote work experience for your customers.
Frameable Spaces offers a powerful Microsoft Teams integration to help you achieve this goal. Our app allows you to expand your product offerings and increase retention by providing a valuable add-on to Teams. Connect with us today to help your clients communicate and collaborate more efficiently while delivering advanced collaboration features, visibility, and analytics.