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When you know history, it can help you avoid repeating mistakes from the past. The same is true in managed services. In 2018, as a large segment of the managed services profession contemplates how to incorporate managed security into their portfolio, some companies are trying to encourage the outsourcing of security services to other MSPs.
Put differently: MSPs who offer security are trying to sell to MSPs who do not. The reasoning is simple enough. If you cannot provide managed security to your customers, then you either risk losing that customer, or you develop a managed security offering. I understand this type of thinking, and it is crucial that we honestly consider it. It is helpful to know that this model has existed before. All MSPs need to recognize this reality and make their decisions accordingly.
The Master MSP Business Model
Early in the 2000s, the "master MSP" business model was popular. The simplest description of this model is a younger MSP organization would partner with the "master MSP" for some of the recurring and more process driven tasks. Using a master MSP allowed the less mature MSP to focus on the customer relationship, billing, and non-recurring project work.
While this may sound logical and look good on paper, in reality, this model was less useful for the immature MSP. Do not mistake me: the practicing master MSPs were quite good at what they did. By all external measurements, those master MSPs really could provide a scalable and efficient managed service.