It begs the question: can anyone become a competitive managed service provider? Are their any barriers to entry in this business?

My answer: Yes and No.

Yes, practically anyone can become and MSP within a week if they so desire. The tools are all available, and they are all getting cheap or free. So technically, anyone can become a managed service provider quickly and at almost no expense.

But No, not everyone can be competitive in this space just because they have access to all of the same tools as everyone else. Why is that? I’ve said it many times before; it takes building a service culture that has fully accepted managed services as its business model to build a viable MSP business.

The tools are important, don’t get me wrong. But they are really just your ticket to get into the amusement park, then all of the fun happens! It takes much more than software to build a business – at least in this space.

So what does this mean for the marketplace? I think what N-Able is doing is good news. It will help get all of the businesses out there familiar with the concepts of managed services. However, the market will be over-crowded with a lot of small players that aren’t delivering that great of service. That means noise and confusion for prospects.

But eventually most of the small players will go away – the bad ones going out of business, and the good ones joining the ranks of a larger company or growing into one themselves. That will be good for everyone.

MRC