As a managed service provider (MSP), you undoubtedly encounter clients who need to upgrade their IT capabilities but want to do so while staying mindful of their budgets. Sticking to a budget can:
- Prevent unwanted financial consequences.
- Show investors the business is worthy of attention.
- Free up more resources for unexpected expenses.
- Make financial goals more achievable.
So, how can you help clients get the best results without unnecessary spending?
Assess the current tech circumstances
A good first step is to evaluate the client’s current IT situation and categorize potential upgrades by urgency level. Advise upgrading the technologies related to critical needs first while prioritizing those with the highest return on investment.
Talk to your client and get detailed information about how their current IT situation hinders their progress, causes them to waste time, or results in other adverse outcomes. Help them see that even if some tech upgrades require significant upfront investments, they could pay off by making employees more productive and impactful during their workdays.
Clients should also link technologies to their brand objectives. Some people get persuaded by the flashy promises of options that seem like the latest, greatest advancements. However, connecting the perceived benefits or advantages to what executives want to achieve is important. That approach helps them understand why IT upgrades will facilitate future goals.
Leverage scalable cloud solutions
Cloud-based products can help clients address many of their IT aspirations. Depending on how the products function, they may make it easier to run weekly meetings, allow staff to work from anywhere with an internet connection, or streamline how the company stores its documents, applications, and other critical assets. Cloud platforms also offer built-in security measures to supplement your client’s preventive measures against attacks, unauthorized usage, and other issues that could elevate spending and cause long-lasting disruptions.
Learn more about how your client wants to use the cloud and identify how soon they need to scale that anticipated reliance. Does their enterprise have seasonal trends or peak periods that could make the cloud especially useful for growing a business or maintaining its resilience?
Once your client feels confident that the cloud is a practical IT upgrade, help them weigh the various options. Although several providers dominate the market, AWS is in the top spot with its 40 percent global market share. Explain to your client how and why cloud costs vary and help them find effective ways to manage the associated costs. Many cloud providers offer calculators that give estimated expenses depending on which services a client wants to use and their computing requirements.
Consider refurbished hardware
When your client needs new hardware, their first thought may be to buy it new. However, there are more financially practical options. Refurbished hardware costs significantly less than new items and undergoes stringent testing and upgrades before returning to the market.
Refurbishment experts follow detailed processes, including cleaning the hardware, installing the latest software, and replacing defective parts. Some providers also offer warranties, giving potential purchasers more peace of mind.
One 2024 study of nonprofit organizations found that 84 percent of respondents agreed that optimized spending was essential for better serving their missions. Wise spending also enables for-profit goals because it gives leaders more room in their budgets for what matters most. Removing inefficient hardware and replacing it with refurbished products is an effective way to improve IT capabilities while managing modest budgets.
Use subscription-based software
Many clients find IT budgeting more manageable when they can pay in installments instead of all at once. Software offered through monthly or annual subscriptions allows that. Many brands that provide it exist in the software-as-a-service (SaaS) industry.
They provide solutions that do not require customers to upgrade their physical infrastructure to take advantage of the newest solutions. Instead, they pay fees to receive software through the cloud. Many can pay for their subscriptions annually or monthly. Prices for the former options are typically more cost-effective. Even so, some prefer the monthly rates, especially before they become convinced a particular software product is an appropriate choice for their businesses.
SaaS products are excellent budget solutions because they facilitate automatic updates and security patches. Customers get the newest features and protections without hiring IT professionals. Teach your client to adjust SaaS product settings to install the latest versions overnight or outside operating hours. Additionally, you can recommend they switch to annual subscription packages if those options result in substantial savings, particularly once users have seen how much the SaaS tools benefit their organizations and workflows.
Increase your client’s IT capabilities
Many of your MSP’s clients may believe they cannot upgrade IT products, services, and systems without exceeding their budgets. Apply these tips to help them see that this is not the case and that they can make measurable improvements while remaining price-conscious.
Moreover, discuss how some improvements may be costlier than a client wants, but they could still be worth pursuing. Analyzing the estimated expenses and likely benefits allows them to identify the most appropriate ways to spend money to support their companies and goals.
Photo: Andrii Yalanskyi / Shutterstock
