Mo’ clients, Mo’ costs: stop being a victim of your own success in the IT industry

Gartner forecasts global IT spending to hit $5.06 trillion in 2024, an 8% increase from 2023. Key growth areas include IT services, software, and data center systems, driven by investments in generative AI (GenAI) and cybersecurity. IT services are set to grow by 9.7%, with software spending up by 13.9%, and data center systems rising by 10%. Cybersecurity remains a top focus, with 80% of CIOs planning increased spending​​.

If you’re offering business service solutions or IT software or hardware, it can feel impossible to scale upwards without adding more costs to your monthly outgoings. In fact, the more successful you are, the more money it’s going to cost you to keep up the momentum. Let’s look at some ways to lighten the load.

Moving to the Cloud

Gartner’s forecast for 2024 highlights a significant shift from on-premises infrastructure to public clouds like AWS and Azure. This transition is driving nearly all of this year’s growth, with “cloud-first” strategies replacing the traditional no-cloud stance. For MSPs, cloud migration is a crucial area to focus on, especially as businesses adopt complex technologies like microservices and containers. More clients are embracing DevOps and DevSecOps Agile practices, increasing demand for MSPs who can seamlessly fill operational gaps. Additionally, with cloud providers handling hardware costs and maintenance, MSPs can see higher profit margins on their retainers. Integrating patch management into your services ensures that client systems remain secure and up-to-date, further enhancing your value proposition.

Changing Your Pricing Model

Traditional IT service pricing often charges by device, which can limit MSP growth by favoring smaller clients. Atera revolutionizes this model by charging per technician instead, offering a transparent monthly rate with no extra fees, regardless of the number of devices or agents. This approach eliminates onboarding fees and hidden costs, keeping your pricing competitive and ensuring higher profitability.

Embracing All-in-One Solutions

Managing costs can be challenging when clients expect comprehensive solutions. Partnering with vendors, purchasing third-party services, or adding new hardware/software can quickly become expensive. An all-in-one solution should cover all your needs under one roof. Integrated PSA and RMM, along with Remote Access, Security, Backup, Monitoring, Billing, and Patch Management, streamline your offerings. This setup ensures a single, predictable monthly cost that meets all client expectations.

Keeping an Eye on Your Margins

If you’re seeing revenue growth but shrinking profits, you’re not alone. Since 2016, revenue has grown by 42%, yet profit margins have dropped by 30%. We aim to change this by offering a cloud-based, all-in-one solution with an innovative pricing model, helping you keep costs low, provide streamlined services, and boost your profitability. Patch management is a crucial component of this solution, ensuring that client systems remain secure and operational, enhancing your service’s reliability and client satisfaction.

Conclusion

For MSPs, this is a prime opportunity to enhance services with patch management and innovative pricing models like Ateras technician-based pricing. By offering integrated, all-in-one solutions, MSPs can streamline operations, boost client satisfaction, and maintain strong profit margins. Embrace these strategies to stay competitive and meet your clients’ evolving needs.

If you’d like to try Atera and its AI features, we offer a 30-day free trial with no credit card required!
You can also contact our sales team for a demo.