Dispelling The 10 Biggest MSP Myths


MYTH 1: Buying managed services software costs thousands of dollars. False

--Damon Richards, president of Port-to-Port Consulting, Indianapolis

MYTH 2: Quarterly business reviews with customers are critical for a successful managed services relationship. True


MYTH 3: PSA software is made just for MSPs. False

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--Jerry Adamowicz, CTO of Gekkotek Inc., Vancouver, Wash.

MYTH 4: VARs need to "fire" all their customers who don't want to move to a managed service contract. False


MYTH 5: Remote monitoring and management (RMM) is the same as "managed services." False


MYTH 6: VARs must fire current sales staff and radically transform their business to deliver managed services. False

--Simon Binder, managing partner at Greenhouse IT LLC, New York

MYTH 7: Even with the proliferation of turnkey tools and services, VARs and MSPs can avoid commoditization. True


MYTH 8: Managed services converts IT costs from a capital expense to an operating expense. True And False

--Neil Medwed, president of Preferred Technology Solutions, Richardson, Texas

MYTH 9: Posting pricing online drives down your value and commoditizes your service. False


MYTH 10: On average, managed services delivers 2x technology utilization, 3x revenues and 5x profits. False

--Glenn Stenger, president of Ex-Cel Solutions Inc., Omaha, Neb.