As companies deal with the economic impact of the Covid-19 pandemic, SMEs are now cutting operating costs as much as they can. Aside from cost-cutting on any possible expenditures including that of managed cybersecurity services, many are also restricting growth while ensuring that they can still survive after this pandemic is over. Unfortunately, many have gone out of business or are on the verge of closing.
Some have adapted well, but almost all industries are suffering from setbacks while dealing with various problems within the company including limited or no operations and a decrease in growth projections for the next few years.
Due to these circumstances, selling and renewing tech service contracts has become more complicated. Bidding for contracts is increasing and many businesses including MSPs are now facing the following problems:
- Proving their worth so they keep their existing contracts
- Keeping clients safe, especially in the sudden increase of remote working and BYOD
- Sustaining sufficient cash flow to stay feasible
- Generating revenue despite clients’ cost-cutting
- Grappling with doubt regarding the future and on how to plan moving forward
What Are Cybersecurity Services?
Before proceeding further, let us understand what cybersecurity services are. Another name for this is information technology security. This refers to the services that cover the processes, technologies, and practices created and designed to provide proper protection to networks, programs, devices, and data from any damage, attack or unauthorized access.
On the other hand, managed cybersecurity services refer to the technologies, processes, and practices employed by MSPs to protect a network, device, program, or data from attacks, damages, or unauthorized access.
Get More Customer Relationships
To ensure competitiveness, managed service providers have to provide the most in-demand services needed right now. With more people needing to continue working but are mandated to stay home for safety purposes, remote working is skyrocketing. This gave rise to the increase in cybersecurity solutions that provide whatever support end users may require. This is because of complaints about cybersecurity breaches while working from home.
Due to the less than ideal business operations, SMEs continually trim budgets wherever possible. As a result, MSPs cannot really depend on acquiring new clients as the primary growth factor. This may have been the best strategy before this pandemic, but it has become almost impossible to sustain this practice now. Providing managed cybersecurity services that protect users from data breaches is becoming the new growth factor to consider.
5 Verticals That Are Increasing IT Spending including Managed cybersecurity services
As mentioned above, there are many companies that have stopped or on the verge of closing. Most markets are cutting IT spending between 3% and 27%. However, these five verticals are expected to increase their IT spending.
- Real Estate by 3%
- Healthcare by 9%
- Technology by 9%
- Food and Beverage by 11%
- Government by 13%
Going after new clients in these vertical areas and/or expecting contract renewals simply won’t cut the need to increase revenue. This is because the expected growth of these markets is still less than the projected number. This implies that even if you go after the highest percentages that will mostly hire or re-hire ITs, their budgets will still be much lower than is previously expected.
In the end, MSPs must strive to offer better services to win contracts with businesses or sectors looking for IT-related services. In addition, MSPs must convince these companies of the need for IT services including managed cybersecurity services so these companies can achieve critical goals. Some expected objects will include lessening overhead expenses, empowering remote productivity, and curtailing expensive data breaches.
Participate In Risk Management Dialogues
Have you given your honest input, opinion, or advice to your clients about the risks and/or the need to employ a new security standard? If you have not done this yet, you should do it soon before your competitors beat you to them. Remember that things are changing. SMEs that do not have proper security solutions are exposed to various cybersecurity threats. In fact, according to Ransomware, there is a 148% spike in cybersecurity attacks from February to March 2020.
With security risks on the rise, MSPs must find new solutions to offer optimal managed cybersecurity services. If your client will consider spending more on security solutions, strive to provide those specific solutions so that you can keep them as your clients. If your current services do not cater to the needs that arise, you must enhance your services to be able to give a complete platform to all of your clients. Make sure that your platform has complete cybersecurity and network security options.
At last, delivering cybersecurity solutions prepares MSPs to develop their relationships with many existing clients. Also, this can pave the way for gaining new recurring revenue. MSPs must create security solutions that can be deployed quickly, scaled according to a client’s needs, and still be budget-friendly. All these so you can increase or at least maintain profitability.
Provide More Value To Existing Clients
Because MSPs cannot depend on gaining new clients as the primary growth factor, you must now focus on the issues that SMEs consider as critical to their businesses. These issues include network security, boosting productivity, monitoring employee behaviors, and many more. As capable MSPs, you can develop your relationship with your clients and drive new and recurring revenue at that.
Remote working has created new cybersecurity risks. So, how are your customers adjusting to the changes? MSPs now have to increase awareness of their clients of the possible web exposures that they may encounter. Offer a quick cybersecurity assessment to help your clients discover any security risks. While doing so, explain these security risks that may be encountered during the transition to remote working or BYOD. After understanding the risks, you can then show how your cybersecurity solution can save them precious money that would have been lost without a threat prevention software.
Change Your Marketing Strategy
It is true that companies are now on a tight budget. What’s more, they are looking for possible areas of the business to cut some funding. In case your customer needs increased cybersecurity but do not have enough funds to pay now, how will you manage that situation? If you can offer various payment options to keep your existing clients, then it will also be better for you. Since you also have to consider your own business, your payment options must not compromise your business as well. If you can propose a payment option that compromises until things become better, then that is great as well.
For sure, this strategy can be risky on your part. On the other hand, you can earn more revenue plus the loyalty of that client. However, due to the risk involved on your part, you must also choose who among your clients to offer this payment option. Perhaps you can offer this to your top 10 accounts IF they are expressing concerns on payment issues. Offering them this option may be an excellent way to show your support to them at these trying times. At the same time, it is a way to maintain recurring revenue and retaining your best accounts.
Let CWDash help you have better communication, provide more value to your existing clients, and change your marketing strategy.
Let us help you avail of managed cybersecurity services that can be quickly deployed without costing you an arm and a leg. Our MSPs can include the following features in your cybersecurity solution:
- Threat detection and response for Microsoft and Azure AD
- Dark web scanning and monitoring
- Advanced endpoint protection
- Unlimited fundamentals and full cybersecurity risk valuations
- 24/7 SOC support
- Security training for internal team members
- A security marketing strategy
Discover how the CWDash MSPs security solutions can help resolve your clients’ cybersecurity needs when they need them the most.
Discover the managed cybersecurity services that CWDash and its MSPs offer. Also, once you have joined the CWDash MSP community, you are welcome to use our free tools to enhance your business success. To book a meeting, give us a call today.