s.e. rentals' managed services series ebook

S.E. RENTALS PTY LTD Level 1, Suite 103, 486 – 494 Pacific Hwy, St Leonards NSW 2065 P 02 9882 8000 F 02 9428 1888 E [email protected] W hGp://www.serentals.com.au

S.E. RENTALS The SER Managed Services Series

Managed Services Series by S.E. Rentals First published online on SER’s Visible Thoughts blog ©2014

Read more | Signup to our blog | Visit our website

http://serentals.com.au/vendor-finance/visible-thoughts-blog

http://serentals.com.au

http://serentals.com.au/vendor-finance/products-and-tools/sico

1

THE SER MANAGED SERVICES SERIES

Managed Services Series by S.E. Rentals First published online on SER’s Visible Thoughts blog ©2014 Read more | Signup to our blog | Visit our website

CONTENTS

PART 1: MAKING THE TRANSITION 2

PART 2: WHAT DOES ‘GOOD’ LOOK LIKE? 4

PART 3: THE CURRENT SITUATION 6

PART 4: FOCUS, UTILISATION AND AUTOMATION 8

PART 5: THE NOC & HELP DESK: HOW THEY WORK 10

PART 6: WHAT DOES A GOOD SME LOOK LIKE? 12

PART 7: CONTRACTUAL ARRANGEMENTS WITH YOUR CUSTOMER 13

SUMMARY: THE SER MANAGED SERVICES SERIES 14



http://serentals.com.au/

2



PART 1: MAKING THE TRANSITION

This Managed Services Series eBook goes out to anyone who is looking to sell any type of equipment that has anything to do with a Network solution.

You might be:

• From the Print Industry• From the Security Industry• From the Communications Industry• A Systems Integrator• A Software Specialist• A Managed Services Provider

In short: anyone who is looking to provide a solution to a commercial client involving any part of their network.

Our aim is to provide some clarity to the fast changing landscape known as Managed Network Services.

We hope that you are across the content already, and if so, this may just reinforce some directions you are thinking about taking. If this IS news to you, then we would urge you to read the series in full and start the process of questioning where your business is going and what options are available to you.

Please know that we will not be expressing any opinions of our own in these blogs. We will merely be expressing the views of those in the Managed Services market who have made the transition to a Managed Services model.

BUT FIRST OFF: WHAT DOES “MADE THE TRANSITION” MEAN? TRANSITIONED TO WHAT?

Not many would dispute that the print and IT industry as we know it is changing.

Declining asset prices, declining margins, declining print volumes and declining service revenues do not paint a pretty picture. Why? Well, put simply, ever since a copier/printer was moved from analogue to digital, the game has been changing, but now we are getting to the pointy end.

2


3



PART 1: MAKING THE TRANSITION (CONT)

THE COPIER/HARDWARE DOES NOT HOLD SWAY ANYMORE.

IT managers make the purchasing decisions more often than not and their preferences tend not to include one brand over another. It is now just something that hangs off the network. Now, the network and the workflow system holds sway. It always did, but when analogue was “the go” the copier guys didn't care where they ranked – now they have to!

SIMILARLY, THE NETWORK INTEGRATORS ARE SEEING ENORMOUS CHANGE.

The emergence of the Cloud and a growing desire from their clientele has meant that the IT world now has to get their head around offering their solutions on an “as a service” basis. i.e Hardware as a service, Software as a service, or indeed, Infrastructure as a service. No longer is the CIO happy to ink out a big cheque every few years. Instead, accountability and flexibility are the key words to live by.

SO THE QUESTION OF THE AGE BECOMES:

"How do I get to control more of the network?”

Our Managed Services series on Visible Thoughts will attempt to answer that question.

We wish you well in your journey and hopefully, you will see us as an ally along the way.


4



PART 2: WHAT DOES ‘GOOD’ LOOK LIKE?

Typical client environments now require not only hardware (and a heap of it) but also Print, Scan, Security, Data Protection and Storage, Communication, Software and Support. Plus, depending on their size, they want someone to navigate a way forward through the Network landscape.

Put simply, a Managed Service Program (MSP) is all about being able to support your client with as many of these services as possible to deliver a “One Throat to Choke” solution and thus developing recurring revenue from a contracted customer base.

The MSP will provide the customer with the ability to outsource the running and maintenance of their network for a monthly fee that covers all contingencies.

“Good” looks like a customer who pays a fixed monthly fee for an “all you can eat” solution that is profitable for the vendor and is contracted for a lengthy period of time.

To your customer, a Managed Network Solution looks like:

v System reliability and performancev Predictable budgetingv Vendor accountabilityv Having a Trusted IT Advisor

Ladies and gentlemen, when you develop these sorts of revenues that are fixed and contracted, the value of your business soars. You go from a business under pressure to feeling like you're the only single person at the dance, with suitors everywhere wanting to buy what you have developed.

THAT'S WHAT "GOOD" LOOKS LIKE!

We have various metrics of a successful MSP in action based on North American numbers, and would be happy to share these in detail.

For instance, wouldn't it be good to know how many devices a single technician can manage using a Remote Monitoring and Maintenance (RMM) program? By the way, the answer is 800. Or how many copier salesmen a Subject Matter Expert (SME) can support? The answer in the US is 6.


5



PART 2: WHAT DOES ‘GOOD’ LOOK LIKE? (CONT)

Hence there are solid benchmarks to aim for. The people who supply the RMM's know these and will also share them upon request because the good ones will want to help you develop a Help Desk and NOC from start-‐up and they know how to do it.

The targeted client is one who needs what is deemed to be a Virtual CIO Solution where this function is outsourced for a flat monthly fee that equates to reliability and no surprises.


6



PART 3: THE CURRENT SITUATION

“Whoever seems to be giving the most value, will be the company most listened to!”

The players today are the traditional copier companies on the left and the network managers on the right. Both are in a race to the middle and both have significant attributes to encourage them to try.

Many, many companies from both left and right sides have already made steps towards the middle, but for now, let's pretend that there are only two types of companies in this race.

COPIERS TO THE LEFT

These companies are characterised by large client bases, good sales teams made up of excellent relationship builders, and a strong sense of how to manage and sell a cost per copy type solution to their clients. This is evidenced in the many customised solutions that are core activity in this sector and greatly appreciated by their clientele. The challenge for copier companies is that they have to go up a steep learning curve as they seek to develop network management capabilities.

NETWORK MANAGERS TO THE RIGHT

These companies have relatively small client bases and have an intimate knowledge of the client's network and systems. They are extremely knowledgeable and understand the requirements of the network and are often seen as trusted advisors on all things to do with the network. The problem facing Network Managers is that they do not have enough clients and find it difficult to develop more, and to add to the issue, the copier players are now encroaching on their existing client bases.

HENCE THE RACE TO THE MIDDLE.

One other significant difference exists. Copier companies have the ability to sell using “finance” imprinted on their DNA and consequently, the delivery of a Managed Service/Cost per Seat solution is well within their capability and their sales people are past masters at communicating the inherent advantages.


7



PART 3: THE CURRENT SITUATION (CONT)

So the challenge for the copier on the left, is to develop the Help Desk, NOC, RMM, SMEs (discussed in Part 2) and most importantly, to change the sales process and sales remuneration to reflect Solution Selling and monthly revenues streams instead of up-‐front commissions.

The Network Managers have to get their head around the “finance” and how to make it a large part of their offering, instead of an afterthought, and they need to develop more "feet on the street” who can better communicate their capabilities.

Be under no illusions; these transformations are not easy for either party. The goal is solution selling that results in an as a service offering that the client will embrace.

It's a very interesting landscape and one that is full of merger/acquisition strategies,that we will discuss later in the series.


8



PART 4: FOCUS, UTILISATION AND AUTOMATION

Okay, so you have decided to go down the path of convergence -‐ you have decided to try and manage more of the network.

SO WHAT'S THE FOCUS?

Firstly – find your offering and stick to it!! We have heard numerous tales of woe from people who have been too flexible in trying to support their client's wishes for a certain type of hardware, software or security product. Pick yours and stick to it. Become the expert and FOCUS on improvement and your client will soon forget the alternative.

Well believe it or not, even though you aren't even there yet; the big worry is commoditisation of the services. In other words, small players on the sidelines knocking down the prices and your margins! As with most of these situations, the key words are Utilisation and Automation.

From day one, your focus has to be on extracting every bit of efficiency from assets employed, be they people, processes, or systems.

Thus, to measure performance, well-‐constructed reporting capabilities are required so that measurement is “live” and accurate. That's how you get Utilisation.

And your utilisation must be contracted. When you do something, you get paid for doing it. Pretty simple concept, unless it's not contracted – and then you will end up working many times for nothing and eroding your profit.

Now even if your resources are fully utilised, it will still be difficult to compete with the smaller players on the sidelines, or the bigger guys who have automated much of the responses. With automation comes the necessary efficiencies required to develop volume.

So even before you set out on this journey, make sure you have a keen sense of the importance of full Utilisation of your resources and a desire to Automate as much of the process as possible.

Remember, these are not our words here – we are merely relaying what we have been told, by those who know, because they have done it.


9



PART 5: THE NOC & HELP DESK: HOW THEY WORK

THE NOC

The NOC or Network Operating Centre is generally run separately to the Help Desk, because the two have very different functions with very different ways of going about their business.

The first thing to know about a NOC is that it is largely proactive and requires no communication with your customer, and has flexible timelines.

Why is this important you ask? Because if your people don't have to talk to the end-‐user, then your typical technical person can go about their business running the latest anti-‐virus upgrades, implement new licences etc in a behind the scenes manner. Thus the skillset of this person is much more technical that the Help Desk operator who will generally have much better client communications skills as a prerequisite.

You see, the NOC does all the things that need to be done to keep your client's network fully protected and running at full capacity. It provides peace of mind and reassures your customer that they, and their network, are in good hands.

TYPICAL FUNCTIONS ARE:

1. Monitoring of the Network for potential issues,

2. Software upgrades that are traditionally run out of hours,

3. Security/anti-‐virus Upgrades,

4. Testing of new Software,

5. Client driven programming changes.

THE HELP DESK

Now since your customer has signed up to your NOC, the last part of the puzzle is the Help Desk. Different to a NOC in every way and for that reason, it is generally manned by a different type of person to the NOC employee.


10



PART 5: THE NOC & HELP DESK: HOW THEY WORK (CONT)

This is for some very good reasons.

Whereas the NOC is proactive, the Help Desk is reactive. Reactive to your customers who are ringing or communicating with you because they have a problem, and it's a problem that you have to solve quickly.

So first and foremost, you need someone who can communicate well with your customer. Someone who can perform triage and solve the problem!

The help desk is not really feasible without RMM ability. This is key. Yes, RMM stands for Remote Monitoring and Maintenance and is the cornerstone of any Help Desk. Good players in the RMM space will show you how to automate many of the response functions, and those that cannot be automated will need to have a clear and precise path to solutions for your customer.

Finally, the RMM is massively important because it generates the reports you need to show your customer. Without these reports, the customer inevitably thinks that you have had it easy because the network is running well. With these reports, your customer gets transparency about what you have done and why your bill is justified.

TYPICAL ISSUES SOLVED BY A HELP DESK INCLUDE:

v “I can't print”v “I can't access my email”v “My computer is running slow”v “I forgot my password”

Critically, many of these issues can be totally automated to help fight commoditisation and keep your margins sustainable.

Okay, I know I know. The thought of having to go out there and find two NOC employees, three Help Desk employees, a suitable RMM system etc; probably makes you sweat!

Well, we can help you there. SER has made all sorts of contacts with the very people who can help you down this road. Give us a call and we will be happy to make the introductions.


11



PART 6: WHAT DOES A GOOD SME LOOK LIKE?

As we have learned, SME stands for Subject Matter Expert and they are pretty rare beasts, but you probably won't get too far without a good one.

Critically, you must be able to leverage your current client base and relationships. This is your “low hanging fruit”, but to do this, you will need the buy-‐in of your relationship person who can make it happen.

Put simply, your sales person identifies and qualifies one of your existing clients or generates some interest from one of your print customers to have a look at possibly having you run his network as well. At that point, that's when your salesperson stops talking and makes an appointment to introduce the SME.

At this subsequent meeting, you then have a killer combination – the relationship person with a track record of “doing the right thing” and the tech expert who can understand the client's current network and support arrangements and then explain how your company can provide a better and cheaper alternative.

If your print focussed sales person tries to do that, well the chances are strong that they will fumble their lines and things will go nowhere. But if the SME is involved, then credibility follows and then the sales person takes over and makes the sale. In the US, they call this the four legged sales call.

SO WHO IS THIS SME?

No, he or she is not the classic computer geek. Instead, they are simply someone who has a strong interest in networks and IT in general and as such, can be easily trained in what you are offering.

We have intel on exactly what to look for, how much you should pay and what results you should expect, however it is US based, but if you want to see it, then please let us know.

Yes, we know what questions you are thinking of – who's client is it? How do I pay the rep and the SME? How do I get my reps to organise these meetings if the results are not up front like a sale? All good questions and tough ones at that. Later in this series, we will show how some successful companies are answering them.


12



PART 6: WHAT DOES A GOOD SME LOOK LIKE? (CONT)

FINANCE – THE MISSING LINK

So finding a good SME for a copier company to be the conduit between Sales Person and IT Person is the focus. However for an IT Company having an easy finance offering where by an ongoing Service/Maintenance/Support fee can be included is this industry's Achilles Heel.

THIS IS WHERE A FINANCE PARTNER WITH A MANAGED SERVICES PLAN IS NEEDED.

This partner needs to:

v Be able to help you develop and include finance with your proposalv Customise an easy system that fits in with your sales processv Have a facility for an agreement where hardware and services can be billed on the one agreementv Be able to collect and remit on your behalfv Give you full control of the asset, customer and upgrade path of a new solution.

Having the above and working with your finance partner around what your solution looks like not only helps you close more business but also increases your margin on the sale.

IT companies have the advantage of the knowledge of the network which is significant, if you can find a finance solution that allows the above you are a significant force.


13



PART 7: CONTRACTUAL ARRANGEMENTS WITH YOUR CUSTOMER

A common gripe within the copier industry is that far too much work is done for no money. Akin to Freeware being used and downloaded in the IT sector, they will seriously erode your profit margins if you don't rein them in (as mentioned earlier in the Utilization blog)

SO HOW DO YOU MAKE SURE YOU ARE GETTING PAID FOR WHAT YOU DO?

It's all too simple. You agree up front and make it a part of your Service Level Agreement (SLA) with the customer. The SLA will set out what you do and don't do. AND if you find yourself doing the later, then you bill for it at the pre-‐agreed rate.

The bit you are probably missing, is that the RMM software you would have already wisely invested in, will basically do all of this for you, prepare the report and make it very transparent to your customer why your bill will be a little bit higher this month. They even show you how to set up the contract with your customer!

Sounds nice doesn't it. Why shouldn't it? You've done the work, so you should get paid! The nice part about this, is that this process is systemised to make sure nothing slips through the cracks.

If you like, we can put you in touch with some very clever people who offer these RMMs. We are sure you won't be disappointed.


14



SUMMARY: THE SER MANAGED SERVICES SERIES

The Business Technology industry is transitioning to a service led future. We all know this to be true and I am sure that if you are reading this eBook you don't need any convincing.

But how do you do it without the right funding option? Many have realised that their current finance partner either has no clue, or is bluffing their way through.

Trying to adapt a Managed Print Plan will not cut it. You will run short on flexibility in no time; as to truly hit the Managed Services 'high notes', you need a whole new level of flexibility -‐ flexibility that has not been seen before.

Many of your sales in the future will start with fleet management rather than 'out with the old and in with the new'. This requires 'hardware lag', which means your funder might have to fund miniscule amounts for a long period until the hopefully inevitable fleet upgrade occurs. This may happen all at once, over many years, or never!

Hardware, software, and/or services will all need to be on the one agreement and on the one bill. Plus, as we all know, as you increase your knowledge of your customer, this whole thing will eventually lead to 'cost per seat' solutions as print volumes continue to diminish.

So to ensure that your finance partner doesn't let you down; just after they say 'oh sure, we can do all of that', simply ask 'show me?' and if they can't? Well, sorry but it will be many months, in some cases years, before they can show you!

We have transitioned to become Managed Solution Finance Partners to the Business Technology industry -‐ and we can show you!

ABOUT S.E. RENTALS

For over 20 years, we have helped traditional print & technology companies meet the challenges of the day, and grow their sales with leading edge industry finance solutions.

Today, this also means providing you with the ‘Finance as a Service’ flexibility, scalability, and agility for success in the emerging managed services areas. MPS, MNS, SAAS, HAAS, in fact, all things technology -‐ all on one bill to your customer, with your branding and simple variations.

We understand your journey like no other finance partner, we’ve prepared and invested in the software platforms, people and funding, to be ready when you are.

Steve Sykes MD and Owner, S.E. Rentals


S.E. RENTALS PTY LTD Level 1, Suite 103, 486 – 494 Pacific Hwy, St Leonards NSW 2065 P 02 9882 8000 F 02 9428 1888 E [email protected] W hGp://www.serentals.com.au

THANK YOU The SER Managed Services Series

Managed Services Series by S.E. Rentals First published online on SER’s Visible Thoughts blog ©2014

Read more | Signup to our blog | Visit our website

http://serentals.com.au/vendor-finance/products-and-tools/sico

http://serentals.com.au/


s.e. rentals' managed services series ebook

Business

rentalsptyltd level1

ehard service