ChannelLife New Zealand logo
Industry insider news for New Zealand's technology resellers
Story image

How to achieve your monthly recurring revenue goals

By Contributor
Wed 29 Jun 2022

Article by BitTitan Asia Pacific director Brad Rosairo.

Monthly recurring revenue (MRR) is the ultimate goal, the most important issue on which anyone in the IT channel should focus.

As the developer of a comprehensive migration toolset for the complete MSP, my company aids the service provider who goes far beyond monitoring and actioning alerts to complete administration and proactive management of customer networks.

We only succeed when MSPs make money.

Thousands have expanded their businesses dramatically by offering their customers certainty that their data, email, documents and all other migrations are complete and accurate when moving from on-premises to

Microsoft Office 365 environments. Beyond this, they provide the training and ongoing support required to keep users productive.

So let’s examine how MRR works, then explore the services customers need in assessing their network’s current state, data assets, user communities, and steps for determining their future state.

They will need help selecting their preferred Office 365 plan and the cloud subscriptions that support it, configuring those options, planning and designing their new cloud-based environments, and developing an initial project plan. All of these are fee-based, revenue-generating activities.

Executing the project plan will require various services, including ordering subscriptions, provisioning and configuring the services, upgrading client devices, migrating data and applications, integrating cloud providers’ services, and more.

Then address users, ensuring they are trained in using Office 365 and related applications effectively. Ensure they are comfortable with self-service portals and support options.

Fee-Paid Planning Services

It shouldn’t be so common to add value at no charge, yet resellers, cloud sellers, systems integrators and others still give away value-added services. These include initial system design, upfront consulting, planning, and order management.

My company’s most successful partners charge for these services. Their first offering to a new client provides the planning and design required before Office 365 or any other cloud service can be ordered.

Other fee-paying examples include initial consulting, application inventory and evaluation, solution architecture and cloud service selection, information architecture and capacity planning, security with cloud integration design, and application and environment transition planning.

Ultimately, customers want to enter their first day with their new services ready to produce.

Today’s cloud integrators combine hardware, software and services from various cloud providers. They are responsible for ensuring that services from multiple cloud providers interact well.

The integrator must provide customers with complete, superior solutions. Data must be backed up. The network and data must be secure and protected. Access must be secure and reliable. User collaboration must be facilitated, and applications must achieve desired functions and results.

An MSP’s value depends on awareness of shifts in the cloud services market, its impact on customers, and recommendations for their business.

Growing Revenue on Migration and Deployment

Most channel partners have had customers seek help after trying to deploy Office 365 themselves. Some find many cloud services challenging to implement. They need expert help since many find provisioning and deployment challenging to configure IP addresses, DNS servers and other internet services.

Data migration is even more challenging. A project might be a simple cutover with a migration app or require tons of conversion, re-mapping and account manipulations. Again, a customer should be completely ready to use the new services on day one.

MSPs can’t remain reactive. This requires confirming the functionality of every user device, plus the preparedness of every user. Training on the applications, the platform, best security practices, and self-service portals should be completed before rollout.

Services that should be incorporated into a complete program during the transition include user transition training, cloud service provisioning, email system migration, email archiving, data migration, and user deployment and rollout.

Initiating MRR

MRR is generated from Office 365 licences, data backup services, online security services, and all other cloud services that pay commissions.

Some of these services are familiar, such as help desk and field support. Most MSPs already offer network monitoring, including alerting and actioning of anomalies, monthly performance reporting, regular reviews, improvement recommendations, and more.

Every cloud-delivered service requires monitoring. We can almost guarantee that an SLA performance report from the provider will always match their invoice. Customers need an objective third party to keep those providers honest.

In the cloud, add capacity management. A significant value of cloud computing is that users pay only for what they use. But someone must keep an eye on the storage, memory, and processor services that users request to determine when they’ve finished using them and left them idle instead of releasing them.

Customers save unbelievable amounts of money when MSPs keep them from paying for services they never use. When MRR is generated from support services, an MSP keeps 100% of the profit but needs to calculate the fully loaded burden to compute a total cost. Even so, income will far exceed the subscription commissions. This is the MRR on which most want to focus: customer fees for ongoing support services.

After the launch of the subscription, these services include day zero transition support, user support program, network and cloud service QoS monitoring and management program, and capacity management.

Improve the Process

There is a danger in remaining completely reactive in executing a support agreement. The system alerts you, you determine a course of action, and then resolve the problem. But what if there are no problems?

There is danger in remaining reactive in the execution. The problem with having no service events is that the customer never sees the MSP in action. The issue emerges at renewal time when a customer asks why they should bother renewing.

So MSPs must be proactive and predictive, anticipating problems and working on them before they occur. When reporting on activities to a customer, the MSP becomes highly visible.

Go further. Offer new ideas, as requirements, projects, initiatives, users and applications require the system to adapt. Talk with users to understand their experiences with the systems in place and surface fresh ideas to better serve each customer.

The ability to renew support agreements and drive continuing MRR depends on remaining highly visible. Do more frequent reports, hold review meetings, or convert these from phone to video.

Construct a plan for managing each account more productively. Maintain a ‘keep-in-touch’ culture and discipline by requiring every account team to report regularly on their latest contacts.

Keep improving their environment, and the MSP will enjoy more MRR for many years to come.

Related stories
Top stories
Story image
SmartWatch
Hands-on review: Huawei Watch D smart watch
The Huawei Watch D is the latest flagship smart watch from the Chinese tech giant, and it's further proof that the company is more than capable of competing with the likes of Samsung and Apple in the highly competitive wearable market.
Story image
Smartphone
Hands-on review: OPPO Find X5 smartphone
With the release of the new OPPO Find X5 in March, we got the opportunity to explore another one of their premium devices.
Story image
Review
Hands-on review: JBL Flip 6 portable speaker
Once you switch it on, and listen away for up to 12 hours, you will quickly realise that this is a little speaker looking for a party.
Story image
Tech job moves
Tech job moves - Fastly, INX, Kinly, SmartBear & Vectra AI
We round up all job appointments from July 29 - August 12, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Smartphone
Samsung introduces new generation of foldable smartphones
Samsung has unveiled its new range of Galaxy Z smartphones, bringing new developments to the company’s foldable smartphone portfolio.
Story image
Dicker Data
Dicker Data brought on as Acronis partner for A/NZ
The news about the partnership comes in as cyber criminals continue to exploit gaps in traditional solutions and strategies in NZ and across the APAC region.
Story image
Red Hat
Red Hat announces 2022 awards winners for A/NZ region
Red Hat recently acknowledged Australia and New Zealand partners with its annual awards, highlighting partners across various categories.
Story image
Financial results
Jade Software’s plan to get back to surplus in 2022
Jade Software has released its latest financial report, revealing that the company has kept its loss low from $567,000 in FY 2020 to just $153,000 in FY 2021.
Story image
Sustainability
NZ program recovers and recycles more than 177 tonnes of e-waste
The TechCollect NZ pilot program says its milestone of recovering and recycling more than 177 tonnes of ICT e-waste recognises the efforts of many.
Story image
Gaming
Attacks on gaming companies more than double over past year
The State of the Internet report shows gaming companies and gamer accounts are at risk, following a surge in web application attacks post pandemic.
Story image
Developers
Snyk announces plans to expand partner network in APJ
Recognising that partnerships are critical for growth, Snyk is building an entire partner ecosystem that will drive its expansion across APJ.
Story image
Cyber attacks
Dramatic uptick in threat activity with exploits growing nearly 150%
"While it’s not a surprise given increased attack opportunities like remote work, it’s still a worrying development and one we cannot ignore."
Story image
Arlo
Hands-on review: Arlo Go 2 security camera
In my humble opinion, Arlo Go 2 offers security for anyone needing to keep a remote eye on prized possessions or premises at different locations.
Story image
Artificial Intelligence
Exclusive: NZ-based DEFEND offers global cyber protection
DEFEND supports customers in 66 countries across the globe with a relentless focus on ensuring that every dollar spent on security provides a meaningful return on investment and reduces cyber risk.
Story image
Machine learning
Sysdig releases CDR offering to combat cryptojacking
Sysdig has unveiled a cloud detection and response (CDR) offering powered by machine learning to combat cryptojacking.
Story image
Ingram Micro
Ingram Micro NZ sees $74 million revenue growth in 2021
Ingram Micro New Zealand's latest financial report reveals that its revenue from contracts with customers increased by almost $74 million in 2021.
Story image
ExtraHop
Organisations exposing highly sensitive protocols to public internet
More than 60% of organisations expose remote control protocol SSH to the public internet, while 36% of organisations expose the insecure FTP protocol.
Story image
Privileged Access Management / PAM
The importance of stopping identity sprawl for cybersecurity
The 2021 Data Breach Investigations Report (DBIR) shows that 61% of all breaches involve malicious actors gaining unauthorised, privileged access to data by using a compromised credential. Unfortunately, it is often too late when the misuse of a credential is detected.
Story image
Economics
9 in 10 retailers prepared for economic challenges this year
Some 9 in 10 retailers (86%) are prepared for continued inflation, higher interest rates and potentially lower consumer spending, according to new research.
Story image
IDC
High level of Customer Identity & Access Management adoption
The study from Okta revealed that the pandemic has either accelerated or highlighted the need for digital-first strategies.
Story image
Dark web
Beware the darkverse and its cyber-physical threats
A darkverse of criminality hidden from law enforcement could quickly evolve to fuel a new industry of metaverse-related cybercrime.
Story image
Google Cloud
Google Cloud to open first cloud region in NZ - among others
Google Cloud has announced plans to bring three new cloud regions, one each in New Zealand, Malaysia and Thailand.
Story image
Neat
Workplace design a crucial factor for better employee experience - report
The key to a successful workplace could be its design, according to research from Ecosystm and Neat.
Story image
Application Performance Monitoring / APM
New Relic integrates offering with Atlassian’s Jira Software
New Relic has integrated errors inbox with Jira Software to allow developers to easily access and set up complete stack error tracking and software performance monitoring from within the tool.
Story image
SaaS
Cloud and data protection big challenges for NZ businesses
"This surge towards a cloud-first approach meant security and safety became afterthoughts - there's no point being the fastest car on the racetrack if you crash.”
Story image
Gigabit
Keysight Technologies and Nokia’s public test of 800GE success
Keysight and Nokia have successfully demonstrated the first public 800GE test, validating the readiness of next-generation optics for service providers and network operators.
Story image
Hybrid Cloud
The essential guide to digital transformation by SolarWinds
Digital transformation is a buzzword thrown around all the time by companies, but what does it actually mean and why is it important? SolarWinds breaks it down.
Story image
Home Entertainment
Hands-on review: TCL 65″ C835 Mini LED 4K Google TV
We introduce you today to a TV that brings the height of immersion to your viewing experience: The TCL 65″ C835 Mini LED 4K Google TV.
Story image
LG Electronics
LG Electronics’ revenue in NZ grows by 57% in FY 2021
The New Zealand branch of LG Electronics Australia's total revenue shot up by nearly NZD $45 million reaching a total of $123.7 million for FY 2021.
Story image
Document Management
TrustRadius gives M-Files two document management awards
TrustRadius has recognised M-Files with both a 2022 Best Feature Set and a 2022 Best Relationship award in document management.
Story image
Home security
Hands-on review: Eufy Wire-Free Dual Cam Video Doorbell 2K
We have had our house secured by Eufy products for over seven months now. We love the brand, and it has never let us down.
Story image
Compliance
Why security needs to shape your journey to the cloud
It's estimated that 80% of workloads could be in the cloud in the next few years. How can you make all that data secure?
Story image
Microsoft
Spectralink DECT devices now integrated with Microsoft Teams SIP Gateway
Spectralink DECT devices are now integrated with Microsoft Teams SIP Gateway to help create better results for business-critical frontline workers.
Story image
Web application firewall
Radware recognised in KuppingerCole’s 2022 Leadership Compass report
Radware has been named a Product, Innovation, Market and Overall Leader in the 2022 KuppingerCole Leadership Compass report for Web Application Firewalls.
Story image
New Zealand
2degrees announces appointments to newly established board
2degrees has announced Liz Coutts as the board chair, while Russell Stanners and Kathy Meads join her as directors.
Story image
Charity
SnapLogic teams up with meetmagic for charity and children
SnapLogic has announced its partnership with meetmagic, an online Australian platform that combines business and philanthropy.
Story image
Distribution
Garmin expands NZ footprint with new Auckland distribution centre
The facility at Goodman’s Highbrook Business Park will be fully operational from October 2022 and features 3,586sqm of warehouse space.
Story image
CyberCX
Nozomi Networks adds nine partners to its MSSP program
OT and IoT security company Nozomi Networks has added nine new members to its MSSP Partner Program, and the list includes CyberCX and Deloitte.
Story image
Surveillance
Ministry will no longer accept equipment from Chinese firm Hikvision
The Ministry of Business, Innovation and Employment (MBIE) says it will no longer accept equipment from a major Chinese surveillance camera maker.
Story image
Samsung
New range of Samsung Smart Watches announced with health focus
Samsung has announced new additions to its SmartWatch portfolio, with the Galaxy Watch5 and Galaxy Watch5 Pro to be released in late August.