Historically, MSPs have offered a broad portfolio of outsourced IT products and services, but not cybersecurity. Demand for security services from companies of all types and sizes is rising significantly now due to the steady rise in cyberattacks.
According to a recent survey, 52% of MSPs state that cybersecurity is the most requested offering by customers. Adding security services to their portfolios gives MSPs the opportunity to reinvent themselves and access a broader customer base. But which steps do they need to take to move from a reseller model to a subscription model?
Transformation to a new business model
The shift to a subscription model for MSPs entails a significant transformation in terms of knowledge, skills, infrastructure and services offered. It is important to dedicate adequate time and resources to ensure a successful transition and provide quality security services to customers.
Acquisition of cybersecurity expertise:
It is essential to have a deep understanding of threats, vulnerabilities, security technologies, regulatory compliance and best practices. Investment in staff training and upskilling is required to develop the necessary expertise.
Moving from a resale model to a pay-per-use managed services model requires a robust and up-to-date infrastructure capable of delivering advanced cybersecurity services. This may involve investment in tools, management platforms, intrusion detection and prevention systems, log analysis and other solutions.
Developing a service strategy:
It is essential for the MSP to define a clear strategy for the pay-per-use services they want to offer. This includes determining the scope of services, such as event monitoring, vulnerability management, security analysis, incident response and consulting services. It is also important to establish appropriate service level agreements and policies.
Regulatory compliance and security frameworks:
It is imperative to understand and comply with relevant regulatory requirements and frameworks. This may include regulations such as the General Data Protection Regulation (GDPR) or standards such as ISO 27001. Adherence to these frameworks gives customers confidence in the quality and robustness of services.
Evaluation and continuous improvement:
As an MSP with a subscription-based service model, it is essential to perform regular assessments on the effectiveness of the security services provided and to look for opportunities for improvement. This entails collecting and analyzing metrics, reviewing and learning from past incidents, and keeping abreast of the latest trends and threats in this area.
A recent study estimates that global MSP revenues will increase by an additional 25% in 2023 compared to 2022. This growth is driven by the incorporation of additional security services.
To make the leap to a pay-as-you-go model simply and efficiently, the best option is to integrate a holistic security solution that covers the areas needed to protect customers in a unified approach. Holistic solutions provide the flexibility and scalability that enable MSPs to choose the most appropriate functions and technology solutions for different service levels. WatchGuard’s Unified Security Platform® architecture provides a unified and simplified approach that helps deliver a powerful service for each threat angle with greater scale and speed while supporting operational efficiencies and generating greater profitability.