Written by: Charles Weaver, MSPAlliance
Desperate times call for desperate measures. The IT channel is going to undergo significant change over the next 12 months, but we must discuss these issues as a community and prepare ourselves for these changes. As the COVID-19 pandemic continues to wreak havoc in the global economy, the question to the IT channel is: will the pandemic recovery have a place for break/fix?
MSP or Break/Fix: Which would you rather be now?
As I speak with IT companies today, there is a definite trend I’m seeing; the MSPs are doing reasonably well, and break/fix companies are a bit more chaotic. Put slightly different; the break/fix customers are much more vulnerable than the managed services clients. As a result, those MSPs more reliant on break/fix revenue are also more susceptible to business disruption, at least compared to those generating more recurring revenue.
Now, this is anecdotal evidence and not a thorough study. But, it is consistent with several periods of economic disruption. MSPs tend to do better than break/fix companies.
In addition to the disruption of the break/fix clients, those businesses able to adapt, including those organizations capable of leveraging remote work environments, are placing incredible strains on public cloud platforms. Those remote workers and businesses are all requiring IT support; IT support that will not come from break/fix companies!
There is no better time to change than the present. If you are a break/fix company, what is stopping you from making the change to managed services? If your business is experiencing disruption during this pandemic, why not join the ranks of the MSPs and participate in the rebuilding of this global economy. This advice is not unique to any particular country; it’s applicable to all countries.
There will be significant personal, political, business, and economic change as a result of this pandemic. There will be a lot of responsibility placed on the managed services profession after this health crisis is over. If you think that break/fix is going to be healthy and strong after this, I would not bet on it. Managed services is the business model of the present and future.
There is no better time than now to make this change happen.