penetration testing , digital forensics , and expert testimony in court . Plus , he said , “ when you start getting into some of the really complex compliance frameworks like FedRAMP , those are things that MSPs are just not going to play in very often .”
Juern built out the MSSP side of his business to target midmarket customers that have some IT staff but not necessarily cybersecurity expertise or a CISO . He does not supply those customers with any MSP services such as help desk or hardware , making those engagements more lucrative .
Indeed , the labor-to-revenue ratio for supporting MSSP customers is much lower ( 8 %– 10 %) versus help desk ( 30 %– 35 %), noted Stephenson . “ So from an employee head count in a challenging labor market , it ’ s a lot easier to grow your business and your revenue through security ,” he said .
A Split Personality ?
Can a business successfully mix the MSP and MSSP models ? Most say , “ Yes , but . . .” They need to be treated as two different revenue streams or “ service factories ,” as industry expert Paul Cissel characterizes them . Farr believes that because you ’ re typically targeting larger companies or different verticals than your MSP customers , you can do both .
“ We have an SDR [ sales development rep ] dedicated to MSP and we have an SDR dedicated to MSSP ,” says Juern , “ and we have a list cleaner that feeds both of those . What ’ s neat is our MSP clients need the MSSP services anyway , so it just kind of feeds in that direction a lot of times .”
Farr adds that you can ’ t be an IT service business today without offering some cybersecurity services , whether you partner with an MSSP or have your own SOC . “ If your clients are absorbing and taking your cybersecurity subscription services , and they have your SOC and they have a business analyst and they have either a vCSO or someone helping them run a program , they don ’ t have as many problems ,” says Farr . “ They don ’ t have disasters . You don ’ t have 10 of your best engineers working all weekend to restore their environment . So it takes the load off your MSP practice . It makes them safer , and it also provides a lot of holistic cross-sell within the account .”
Pay To Play
An MSP that builds out an MSSP offering has to be prepared for the time and money it will require , however . Juern expects to hit breakeven this year or next , after a two-year-plus ramp up that included the following :
• Acquiring more office space to house hardware and security staff and keeping access restricted from the MSP side of the house as part of their security protocols
• New servers and storage to run the SIEM
• Training and certifications for staff who wanted to upskill and transition to security along with salary increases
• New hires with cybersecurity skills
• Third-party consultants
• CMMC and SOC 2 certification
With this investment made , “ there ’ s really not anything that a company needs that we can ’ t provide ,” Juern says , other than a security audit . And while he says the MSSP sales cycle is longer , they ’ ve already signed three clients representing about $ 12,000 MRR with “ a lot more in the pipeline .”
Swim In Both Lanes
Given today ’ s cyber threat landscape , the security revenue stream shows no signs of slowing down . If you ’ re an MSP looking to become an MSSP , there are challenges and investments to consider , but the payoff may be worth swimming in both lanes .
Colleen Frye is Executive Editor of MSP Success . A veteran of the B2B publishing industry , she has been covering the channel for the last 17 years , most recently as managing editor of ChannelPro . Her work has been published in a variety of media , including TechTarget sites , InfoSecurity Professional magazine , and Application Development Trends .
Fascinating panel discussion on MSP vs . MSSP at TMT ' s annual IT Sales and Marketing Boot Camp . L to R : Jay Smith , Will Nobles , Rob Stephenson , Wayne Hunter , Jeff Farr and moderator , TMT ' s CEO , Robin Robins .
To Watch This Exclusive Session , Scan The QR Code Or Go To : www . MSPSuccess . com / panel
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