<img height="1" width="1" style="display:none;" alt="" src="https://px.ads.linkedin.com/collect/?pid=1280324&amp;fmt=gif">
A Microsoft CSP planning their growth strategy and revenue increase

How to become a successful Microsoft CSP

How to become a successful Microsoft CSP

2022-06-21 07:20:19 — 5 min read

There’s more to running a cloud service provider (CSP) business than simply offering an excellent service. Chances are, in time, you will want to grow and scale. However, for many, this is intimidating. Where do you start? How can you create sustainable profit?

Even the most progressive CSPs face challenges; they haven’t just built a high-quality customer base out of thin air. The complexity of the CSP business model means it takes time, strategic planning and resources to enable growth, but it’s worth doing.

The global cloud computing market size is expected to grow to US$623.3 billion by 2023. It’s never been more important to stand out from your peers. You don’t want to become stagnant while others act on the opportunity.

Alongside market growth, Microsoft CSPs and Managed Services Providers face new growth challenges. For example, increasing revenue in an already mature market can be an uphill climb. When services are well-defined and business relationships are longstanding, it might seem impossible to squeeze extra dollars from your customers. Secondly, building strong operational processes to match the pace of growth is a must to ensure profitability. In prospering times, it’s easy to take your eye off the bottom line until it's too late.

If you’re a Microsoft CSP wondering why others are growing so much faster than you, you’re in luck. Here’s some insight into their strategy.

3 things successful CSPs do differently

1. Cross and upsell services

90% of customer value for B2B business is obtained after the initial sale. Yes, you heard right, ‘after’.

CSPs with excellent customer relationships are at an advantage. They know their clients are comfortable with the support they offer. They also know what they need to improve their IT experience. This is the starting point to CSP success.

These businesses will make a large bulk of their profits through cross and upselling value-added services. After all, the cost of upselling to current customers is lower than acquiring new business. Successful CSPs will then use the margin earned from upselling cloud services to cover their business costs and more.

Adopting this approach will help to increase your revenue. Furthermore, if you offer a steady stream of value-add to your clients, you’ll know that your business will have a consistent monthly recurring revenue (MRR.) This will help with your growth strategy as you can accurately forecast costs and expenses over long period of time.

2. Optimize technology and systems

 A recent survey showed that MSPs are overwhelmed by the number of tools they have. Over half of respondents used multiple solutions to:

  • Manage user environments
  • Report and monitor infrastructure
  • Assign licenses and subscriptions
  • Invoice customers
  • Control endpoint management
  • Connect with external applications
  • Manage spreadsheets and IT assets

Invariably, it’s an inefficient way of working. Not only does it cost MSPs their time, but it’s also a huge financial drain for organizations, especially as over 58% of companies don’t use their solution’s full potential.

Your tech-stack sets the pace at which your team operates. Successful CSPs have downsized or consolidated technologies to help with their growth goals and financial outgoings. Not only will they save money, but their processes will be very efficient.

Less is more. Keep this in mind for your CSP growth plan or you could be at risk of losing business to more nimble players in the industry. When assessing costs, find one automation tool that covers all your operational and customer needs.

3. Use skilled staff for skilled work

Staffing can be a juggling act. How do you keep overheads down and create a team that can cope with increased demand and customer satisfaction?

The people you employ reflect the capabilities of your CSP business. So, you need to get it right. There are clever ways to increase workforce visibility and save costs at the same time.

  1. Clever CSPs have realized that without the right tools, valuable talent will waste time on everyday work. They lean on automation to manage the daily grind and get their specialists to focus on more complex client needs. With automation in play, they may not even need engineers for a five-day working week. For example, they save money by getting security experts do work for specific clients on a shorter working week.
  2. They have hired contractors and part-time flexible employees to keep overheads down, and reduced labour costs by outsourcing manual work overseas
  3. Over 77% of MSPs have an offshore team to manage various types of work. To control the ticket demand, many have outsourced help desk teams to keep costs down. This is a great way to control finances and be a business that can implement an ‘around the clock’ service.

You may think you should invest in extra staff onshore to keep up with growth demands. However, this may not be the case. When looking at your talent setup, ask yourself:

  • Do you have the right specialists to service your growth areas?
  • Is your tech team adding value or are they too busy managing admin tasks?
  • Could you upskill talent and save on onboarding costs?
  • Would you consider an offshore help desk team to reduce overheads?

Automation is key to successful Microsoft CSP growth.

Today’s top Microsoft CSPs have left the heavy lifting to automation. They have more time to focus on growth and are well-prepared in their approach to decreasing costs and increasing revenue. These are the businesses that will stand out in the US$623.3 billion market.

What are you waiting for? Jump on the growth bandwagon and start enjoying a bigger share of the pie.

Free cheat sheet: How to decrease costs and increase revenue.


 About Spinpanel: Spinpanel, a leading end-to-end automation solution, is for Microsoft Partners seeking a better and more and efficient way to manage Microsoft tenants at scale. The single, comprehensive portal empowers MSPs and their customers to unlock the full potential of Microsoft 365 and Azure. Through advanced multi-tenant configuration, automation, and management capabilities, MSPs can save time, scale their business, and improve customer satisfaction.