Navigate remote work in a post-COVID world

Helping SMBs navigate hybrid work as the new normal – Part II

Partner opportunities ahead in the aftermath of COVID

Part 1 of our blog series explored the trends, trials, and tribulations SMBs and Partners face in a post-COVID world. Remote work exposed security loopholes as organizations lost complete visibility into workers operating outside of the corporate network. The need for a solid data recovery strategy has never been greater. In this post we turn our focus to the opportunities that lie ahead for partners in a pandemic-fueled remote work era as new managed service offerings that can bundle security and collaboration are at an all time high.

The partner opportunities ahead

Remote work productivity is contingent on an organization’s ability to easily communicate, collaborate, access data, and share information with in a secure cloud environment, however customers remain apprehensive of the path forward. The Remote Workforce Survey indicates that 73% of these organizations feel susceptible to security risks introduced by working from home. In fact, 60% of SMBs are looking for a partner’s assistance to innovate and increase cloud transformation with 54% of organizations expecting budgets for remote workforce security to increase over the next 12 months. Services that ensure SMBs are compliant, secure, and confident are critical to business productivity.

Savvy MSPs have tapped into the surge of adopting unified communications software like Microsoft Teams as a competitive and timely service offering. By 2024, in-person meetings will drop from 60% to 25%, driven by changing workforce demographics and increase in flexible work arrangements.

However, technology alone cannot drive customer efficiencies and remote productivity. Customers attracted by compelling offers to jump-start flexible work environments will need assurance of a secure deployment and as well as training and advisory services to drive adoption across an entire organization.

Customers who already made the shift to remote work and are now expanding the footprint of their existing Microsoft 365 subscriptions will find that your managed service offerings elevate company collaboration, data security, compliance, user-adoption, and integrations with apps through Teams. In our work and play from anywhere, on any device, at any time world MSPs have an ideal opportunity to grow their business and develop lasting customer engagements with a managed service Microsoft Teams offering.

Collaboration and security offerings for SMBs are more relevant than ever before

Secure remote-work-based managed services are here to stay and will continue to drive MSP revenues. Since the onset of the pandemic 66% of MSPs have experienced an increase in remote work service workloads, with Microsoft Teams and security services comprising more than 85% of the revenue mix. Most businesses are relying on the expertise of MSPs to help them move, administer, thrive, and be secure in the cloud – all while adopting modern work technologies. In fact, 90% of SMBs would consider hiring a new MSP if they offered the right cybersecurity solution. This, in conjunction with the MS Teams opportunity, provides MSPs the perfect go-to-market offering to differentiate their business.

One such example of a compelling managed service offering is a Modern Work Bundle that packages up the productivity of Microsoft 365 with a special emphasis on the collaboration and connectivity aspects of Microsoft Teams – and the peace of mind provided by the comprehensive data protection of Cloud Backup. The offering provides customers everything they need to move to the cloud as they embark on their flexible work transformation journey.

Modern Work bundle that packages up the productivity of Microsoft 365

Bundling cloud services with Microsoft 365 not only represents a customer discount on the cost of purchasing each bundle component separately, it also establishes a source of recurring monthly revenue for MSPs through high-margin cloud services. Once in the door and selling, MSPs can continue to grow margins by providing deployment services including advisory and adoption services, and support.

Adding one-time engagements around Microsoft Teams can grow MSP margins to 35%. This includes things like migrations and Microsoft Teams and Apps integration roll-out. Margins can grow up to 65% by adding in recurring services with things like lifecycle management, direct-routing-as-service, and managed services. These margins continue to grow when you build out a full Teamwork practice, especially if you can create and sell your own packaged IP. For every $1 in Microsoft revenue, partners can make more than $9 on in additional services. 

In part three of this blog series, we explore why MSPs who invest in cloud management automation are able to deliver a repeatable, reliable, and secure deployment of Microsoft Teams – which means customers are up and running quicker and able to maximize their productivity.