MSPs are poised on the brink of a tremendous market opportunity. IT organizations are woefully under-resourced given the demands of the business, so they desperately need to offload “chore” tasks to MSPs in order to focus on “core” ones.

But MSPs need to do three things to succeed:

  1. Craft portfolios of service offerings that tightly align with the actual needs of their target customers
  2. Develop the right mix of best-in-class technologies to effectively and efficiently deliver those services
  3. License those technologies in ways that enable them to optimize profits while offering customers compelling value.

That third requirement is often under-appreciated. It doesn’t matter how market-savvy or technically competent an MSP is if it can’t be profitable at whatever price-point the market will bear. So MSPs have to keep their software costs rigorously aligned with how customers consume services.

If their software vendors locked them into exorbitant fixed upfront costs, money can wind up pouring out faster than it pours in. By the same token, if and when demand spikes, an MSP has to be able to quickly ramp up capacity without worrying about violating license terms.

Our new MSP 2.0 licensing program for CA Arcserve gives MSPs the flexibility they need to respond to changing customer needs. It features subscription-based per-terabyte pricing that frees MSPs from burdensome capital outlays and allows them to price their services based on their customers’ monthly utilization while maintaining a predictable margin. This is a win-win-win—for CA Technologies, our MSP partners and their customers.

Yes, cloud technology is effecting sweeping change across technology markets worldwide. But without the right licensing structures, none of us will gain its full potential business benefits.