The cybersecurity landscape is in constant flux, demanding that managed service providers (MSPs) and IT providers adapt to new threats, regulations, and customer expectations. This blog post synthesizes key insights from a recent discussion on the critical aspects of pricing, packaging, and demonstrating the value of cybersecurity services in today’s challenging environment.
Key Challenges in the Modern Cybersecurity Era
- The Increasing Complexity of Cybersecurity: Implementing effective cybersecurity solutions involves a wide array of tools, technologies, and processes, all with varying pricing models and complexities. This makes it challenging to translate technical capabilities into clear, value-driven offerings for clients.
- The Shift in the Threat Landscape: Cyberattacks are becoming more sophisticated and frequent, often targeting small and medium-sized businesses (SMBs). The prevalence of ransomware-as-a-service and other easily accessible attack tools means that SMBs are under constant threat.
- The Demand for Cyber Resilience: Clients are no longer just seeking basic security measures; they require a system that helps them maintain business continuity through a cyber incident. This shift requires MSPs to focus on outcomes rather than just selling tools.
- The Evolution of the IT Channel: The channel has changed, with vendors no longer operating in the same manner as they did in the past. This change increases pressure on MSPs and requires a new approach to selling to clients and working with vendors.
Essential Strategies for MSPs to Thrive
- Strategic Packaging and Bundling: Craft service offerings that bundle essential cybersecurity services into easy-to-understand packages. Focus on value-driven packages and selling a complete service, and then incorporate vendors.
- Clear Communication of Value: Effectively communicate the value of cybersecurity services by speaking in terms of risk and the potential cost of breaches, focusing on the client’s outcomes.
- Mastering the Fundamentals: Ensure essential security practices are in place, such as multi-factor authentication, and effective endpoint security to build a robust security posture.
- Adapt to a Changing Marketplace: Leverage the experience and knowledge to help small and medium businesses thrive in a world where security is more important than ever.
- A Focus on Cyber Resilience: Position offerings as ways to ensure cyber resilience. By showing your clients how the MSP can help ensure their operation continues no matter what, this becomes the focus of your selling point.
- Collaborate and Partner: Partner with other providers to co-sell services and expand capabilities.
- Leverage Data and Benchmarking: Support increased pricing and service changes by providing your clients with data in relation to a baseline assessment.
Key Takeaways for IT Providers
Successfully navigating the evolving cybersecurity landscape requires a shift in mindset. IT providers must move beyond simply selling products and embrace a comprehensive approach to cybersecurity. Key takeaways include:
- Focus on Value: Deliver value by understanding that costs for clients have changed.
- Adapt to Market Changes: The market is evolving. Act accordingly.
- Simplify Messaging: Speak the language of risk and compliance.
- Build Command and Control: Gain mastery of business fundamentals.
By focusing on these key areas, IT providers can successfully adapt to the changing landscape and build robust, valuable cybersecurity offerings that meet the needs of today’s businesses.