What MSPs Aren’t Getting Out of Their Current Providers

Welcome to Gone Phishing, a show diving into the cybersecurity threats that surround our highly connected lives. Every human is different, with unique vulnerabilities that expose them to potentially successful social engineering. On this show, we'll discuss human vulnerability and how it relates to unique individuals. I'm Connor Swalm, CEO of Phin Security, and host of the Gone Phishing podcast.

Today, we're going to talk about how MSPs (Managed Service Providers) are always looking for more ways to provide additional value to their clients. However, when they try to do that with a security or IT vendor, they often end up choosing one that isn't MSP friendly. I'll discuss why this happens, based on conversations with industry professionals and friends.

What Does It Mean to Be MSP Friendly?

Everyone claims their tool is MSP friendly, but that doesn't necessarily mean it's focused on driving specific outcomes or helping you serve SMB or midsize clients. When evaluating a vendor, there are typically two main focuses:

1. 1.Enterprise Focused: Tools are highly customizable and built for integration into large companies.
2. 2.MSP Focused: Tools are designed to work with IT service providers to serve many clients at once.

The differences in these focuses result in significant feature set differences, which can impact the outcomes MSPs deliver to their clients and the time spent managing these tools.

Key Features MSPs Should Look For

1. Multitenancy

The most important feature is multitenancy. Instead of logging into a dashboard and accessing only your accounts, a multitenant tool allows you to manage hundreds or thousands of client accounts from a single dashboard. You can provision, delete, edit, view reports, and manage all accounts at once.

2. Simple Billing Structure

A super easy-to-understand and easy-to-implement billing structure is crucial. Whether it's aggregate usage, flat fee per tenant, or flat fee per month, the model must be simple. This clarity helps you understand costs and pass them on to clients accurately. Complex billing can erode margins or lead to billing errors.

3. Monthly Invoicing Options

Monthly invoicing is important. Paying upfront for services you don't use leads to wasted licenses or usage. Without monthly options, you risk overestimating or underestimating usage, which can create tricky situations with clients.

4. Month-to-Month Agreement Options

Long-term contracts can be problematic if a tool turns out to be a poor fit. Month-to-month agreements provide flexibility, allowing you to adapt as your needs or your clients' needs change.

Product Considerations

Your product should not require constant attention. If your team needs to log in repeatedly to manage or reset things, the tool likely won't scale well. MSPs should focus on automating as much as possible, handling repetitive tasks with better software or more convenient setups.

Automation and Reporting

Automated reporting is a major area where providers often fail MSPs. Reporting is inherently difficult—making a report presentable to every client is nearly impossible. Many MSPs end up extracting data from one platform, reconfiguring it in another, and then presenting it to clients, which is time-consuming and often requires multiple team members.

Questions to Ask Vendors

Before adding a tool to your stack, have candid conversations with providers. Key questions include:

• ​Is this a multitenant solution? Can I see the dashboard? Can I manage all accounts from one login and delegate access?
• ​What are the contract terms? Are there discounts for higher usage? Can we create a rollout schedule? Can we opt into longer agreements later for discounts? Is monthly invoicing available? Are there hidden upcharges or premium features?

It's important to ensure the partnership is balanced and that you understand all costs and contract terms. Surprises like hidden premium features can quickly erode your margins.

Tailoring to Your Business

MSPs vary widely—some offer a defined stack, others provide custom solutions. Depending on your business model and market, you'll have different needs and questions. However, the biggest concerns are usually around billing/invoicing and having a single dashboard for core features like reporting, account access, and delegation.

Conclusion

These are the key considerations and questions MSPs should keep in mind when evaluating tools and vendors. Proper evaluation ensures the tool fits your business and helps you serve your clients effectively.

Thank you for listening to the Gone Phishing podcast. If you want to learn more about high-quality security awareness training campaigns that engage employees and change habits, check out Phin Security at phinsec.io.