THE ESSENTIAL GUIDE TO SELLING MANAGED ENDPOINT PROTECTION

AN MSP’S HANDBOOK FOR BUILDING RECURRING REVENUE THROUGH MANAGED ENDPOINT PROTECTION

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IntroductionIS THIS BOOK RIGHT FOR YOU?This guide is for any IT service provider or managed services provider interested in building recurring revenue with managed antivirus / managed endpoint protection.

THE SECURITY PROBLEMDespite great advances in security software in the last decade, malware has evolved into a multi-million dollar white collar crime industry. Many small and medium-businesses (SMBs) do not understand the impact malware can have on them until it is too late.SMBs do not have the time nor expertise to install and manage the security software that is necessary to protect against modern malware threats; however IT service providers and MSPs can provide the necessary protection that is the same or better than consumer antivirus software.In this guide we explore: » Operating system and web browser vulnerabilities trends » The competitive landscape of security software » How to generate more managed security leads » How to close the deal for managed or reactive customers

This book will equip IT service providers to show an SMB where they are vulnerable and explain how they can receive the best protection for a reasonable cost.

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Security BreachesIS NETWORK SECURITY WORSE TODAY THAN EVER BEFORE?It seems lately that every few months we read about another major security breach where tens of millions of customer records are stolen with the intent of selling personaland fi nancial information for profi t. The cost of these breaches, such as reduced customer loyalty or lost repeat business, is almost impossible to measure. More than one chief information or chief security offi cer has lost their job because of these major breaches.As an MSP, you hold the responsibility for protecting your customers’ networks and data. A signifi cant breach where data is stolen or critical systems are kept offl ine could result in a disgruntled customer terminating your contract.

SIGNIFICANT DATA BREACHES & HACKSThe following chart shows some of the most signifi cant data breaches and hacks over the last 5 years. All breaches represented had 20 million or more records stolen1.

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1. “World’s Biggest Data Hacks”, Access 4 Feb 2015. Available at: http://www.informationisbeautiful.net/visualizations/worlds-biggest-data-breaches-hacks/

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Operating System Market Share and VulnerabilitiesOperating system lifecycle has been unpredictable over the last 15 years. In October 2001, Windows XP was introduced held the top marketshare until it was surpassed by Windows 7 in 2009. Despite this loss in market share and numerous announcements of the end of XP, we observed that due to demand, Microsoft continue to extend support for Windows XP into 2014. A 13 year lifecycle for a single version of software is impressive in today’s digital age.

3TOP 5 OPERATING SYSTEM’S MARKET SHARE (LAST 3 YEARS)1

1. Operating System Market Share, by W3Counter. Available at: http://www.w3counter.com/globalstats.php?year=2014&month=9

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WINDOWS® VULNERABILITIES BY OS VERSION1

1. “The Secunia Vulnerabilty Review 2014” by Secunia. Available at: http://secunia.com/resources/reports/vr2014/

The previous chart shows the slow decline of Windows XP & 7 and the growth of Windows 8 in recent years. It is interesting to note that as time has progressed, vulnerabilities in Windows operating systems has increased. Due to Microsoft’s decision to include flash with each new install of Windows 8 in Internet Explorer by default, we can see that it has the highest number of vulnerabilities of all listed versions. As the Windows 8 market share increases, we may start to see an increased number of attacks and an increased demand for endpoint protection software.

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TOP 5 BROWSER SOFTWARE MARKET SHARE LAST 3 YEARS1

Browser market share and vulnerabilities4

1. Web Browser Market Share, by W3Counter. Available at: http://www.w3counter.com/globalstats.php?year=2014&month=9

In an internet-centric age, the web browser is the hub for most activity on today’s workstations. If hackers are not focused on exploiting operating system vulnerabilities there is a good chance they are spying on web browser activity to steal your customer’s information.The following data from W3Counter tells a story of the browser market going from a closerace for fi rst place a few years ago to Google® Chrome™ dominating the browser market1.

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VULNERABILITIES IN THE 5 MOST POPULAR BROWSERS

Numerous evolutions in web technology have transformed the browser from an information consumption tool into a complex platform that can launch anything from simple plug-ins to fully featured thin-client applications. This provides hackers with the means to induce the average user into downloading a seemingly benign application that is actually a front end for spyware, adware or other malicious software. As a result, we are seeing a trend of browser vulnerabilities increasing as time progresses. The following chart shows total vulnerabilities in the 5 most popular browsers over time1.

1. “The Secunia Vulnerabilty Review 2014” by Secunia. Available at: http://secunia.com/resources/reports/vr2014/

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MALWARE DESCRIPTION

Ransomware Form of malware that holds a computer system captive while demanding a ransom. The malware typically restricts access by encrypting the contents of the hard drive and displaying messages that are intended to force the user to pay the malware creator.

Rogueware Standalone malware program that disguises itself as a well-known or helpful program (such as antivirus) in order to convince a user to install it. This malware attempts to access and steal fi nancial or personal information.

Rootkits The goal of this malware is to provide remote access or control of a computer without being detected by users or security programs. It can modify an OS to prevent itself from being displayed in the list of system processes and prevent its fi les from being read.

Backdoors This malware bypasses normal authentication procedures to install itself unknown to the user. Once this malware enters your system it opens a back door to allow remote access to your system leaving your data vulnerable to remote intruders.

Worms Exploits operating system vulnerabilities and spread over computer networks. Many worms are capable of creating bot-nets out of infected computers using your CPU and bandwidth for its own purposes such as DDoS.

Malware Threats Your Customers Need to Know aboutMany SMBs choose to ignore the security problem hoping that they will be lucky and not get hit. With the sophistication of today’s threats, and the amount of corporate and personal information that can be stolen from the average workstation, it’s an MSP’s job to educate SMBs on the risks.The following are categories of modern malware that should convince any SMB to take action:

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6 What Is Modern Malware Targeting?First, there are malicious programs designed by hackers who are trying to prove their abilities. They could be looking to access your system, damage it or use it in a DDoS attack against a third party. The second and more dangerous threat to your customers is the family of malware whose sole purpose is to steal information or con your customers out of their money. From the above list of malware categories we can see that two-thirds of this malware is targeted at ransoming your customers’ information for money or stealing their information to sell it to for profi t.

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MANUAL PROCESS GAPS IN PROTECTION

» Time consuming manual setup for each device » Manual threat protection device by device » Inability to monitor all devices to ensure all are protected

» On average, lower malware detection rates than business class antimalware solutions » User can uninstall antivirus software leaving endpoint vulnerable » User can ignore threats and leave an endpoint infected possibly causing malware to spread to other endpoints

7 What about Consumer Antivirus Software?Despite the prevalence of major security breaches, increased vulnerabilities in OS and browser software and the proliferation of malware software, many users simply don’t feel that they are vulnerable. As the saying goes, “out of sight, out of mind”. Unless someone has personally experienced a major data breach, they may feel indiff erent to digital theft.On the other hand, many feel that they are protected. They have gone out and purchased or downloaded free antivirus software. They run their weekly scans and resolve the issues that are detected. The major problem is a false sense of security. In numerous independent antivirus tests, Microsoft security essentials has the highest market share of all consumer antivirus software, however it provides among the lowest protection rates. While consumer antivirus can be a good solution for the home user, it does not provide the SMBs with the tools to easily monitor the tens or hundreds of devices that need protection. Some downsides to consumer AV:

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TOP 5 CONSUMER ANTIVIRUS SOFTWARE PROTECTION1 BY MARKET SHARE2

1. “This is how well security packages protect porous XP systems” 28 August 2014. Available at: http://www.av-test.org/en/news/news-single-view/this-is-how-well-security-packages-protect-porous-xp-systems/

2. “Antivirus and Threat Report January 2014” January 2014. Available at: https://www.opswat.com/about/media/reports/antivirus-january-2014

The following chart shows the top 5 consumer antivirus software and their protection rates (i.e. threat detection and false alarms rates) for Windows XP, as well as their impact on device performance and usability.

There are numerous independent testing websites such as www.av-test.org and www.av-comparatives.org that you can use to show your customers the performance of consumer antivirus.

Pro Tip: Leverage RMM monitoring or have a conversation with a prospective customer to determine what Antivirus software they have in place. Once you know you can do some research and show them the performance of their product compared to the managed endpoint protection software you can provide.

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8 Managed Endpoint SecurityMSPs can provide SMBs superior protection in two ways:

COMPREHENSIVE PROTECTION EASY MANAGEMENT

By leveraging business class endpoint protection, MSPs will be providing the highest detection rates meaning they better protect against all classes of malware.

A managed solution automatically monitors all endpoints so MSPs have a holistic view of security and can ensure that all endpoints are protected.

MSP MANAGEMENT: HOLISTIC VIEW OF SECURITYManaged endpoint protection provides MSPs with a complete view of an SMB’s end-point protection.

EASY MANAGEMENT MONITOR PROTECTION REPORT ON PROTECTION

Auto-deploy protection to new devices or re-deploy if an employee attempts to remove protection.

Know that your customers are protected by monitoring end-point status.

Auto-generate graphical reports that you can deliver to your customer to show them how protected they are.

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SMB PROTECTION: SOLARWINDS N-ABLE SECURITY MANAGER: AV DEFENDER BASED ON THE BITDEFENDER ENGINE

Managed endpoint protection provides SMBs high levels of detection for all classes of malware. The Security Manager: AV Defender engine is based on Bitdefender whose performance can be seen in the following stats and awards.

AV-COMPARATIVES.ORG PERFOR-MANCE1 AV-COMPARATIVES

Protection: 6.0 / 6.0Performance: 6.0 / 6.0Usability: 6.0 / 6.0

Real-World Protection Test March-June 20142

99.8% detection0 False alarms

1. “This is how well security packages protect porous XP systems” 28 August 2014. Available at: http://www.av-test.org/en/news/news-single-view/this-is-how-well-security-packages-protect-porous-xp-systems/

2. “Real-World Protection Test March-June 2014” by AV-comparatives. Available at: http://www.av-comparatives.org/wp-content/uploads/2014/07/avc_prot_2014a_en.pdf

3. “Bitdefender Wins AV-TEST #1 Spot in Protection and Performance”, 17 February 2014. Available at: http://www.av-test.org/en/test-procedures/award/2013

AWARD WINNING SOFTWARE3

Bitdefender Wins AV-TEST 2013 #1 Spot in Protection and Performance.

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9 Making the Case for Managed Security

SERVICE SMB PAYS 1ST YEAR FOR SINGLE DEVICE

SMB PAYS 1ST YEAR FOR 5 DEVICES

Consumer Antivirus

Microsoft® Security Essentials Free1 Free1

Avast! Internet Security 2015 $44.992 $239.992

AVG Internet Security 2015® $59.993 $599.993

ESET Smart Security® $39.994 $119.994

Norton™ Internet Security $54.995 $399.955

Managed Endpoint Protection

Security Manager: AV Defender $36.00 $180.00

“We can do it better, faster and cheaper than our clients can in-house.”Steve Jaramillo, Founder and Chief Executive, Catalyst

1. Protection for your PCMicrosoft pricing., Accessed 22 Oct 2014. Available at: http://windows.microsoft.com/en-CA/windows/security-essentials-download

2 Avast Pro Antivirus. pricing, Accessed 22 Oct 2014. Available at: http://www.avast.com/en-ca/pro-antivirus3 AVG Internet Security 2015pricing, Accessed 22 Oct 2014. Available at: http://www.avg.com/ppc/ca-en/is_buy4 ESET Smart Security. ESET pricing, Accessed 22 Oct 2014.

Available at: http://www.eset.com/us/store/smart-security/5 Symantec pricing, Accessed 22 Oct 2014. Available at: http://norton.symantec.com/norton/ps/3up_ca_en_navnis360_sym_3up.html?om_sem_

cid=hho_sem_sy:ca:ggl:en:e|kw0000088753|26752847361|c&country=CA

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YOUR SERVICEYOUR AVERAGE

MONTHLY REVENUE1

(PER DEVICE)

YOUR AVERAGE MONTHLY COST1

(PER DEVICE)

Light Monitoring » Light Monitoring » Asset/Software/Hardware reporting » Branded Sys-tray icon » Remote control

Free Free

Managed Security » Industry leading AV protection » AV Monitoring & Updates » AV Threat/Status Reporting

$3 /device $1 /device

10Build Recurring Revenue from Reactive CustomersIt is very hard in today’s market to gather sales leads from SMBs. Cold calling is high eff ort with low return and marketing programs can be very expensive. SolarWinds N-able has created free monitoring licenses that you can use to get your foot in the door. Off ering an SMB a free network assessment gives you the opportunity to providevalue to the SMB before you start pitching your service. This allows you to win some trust and build a relationship by demonstrating your value.

Free monitoring allows you to deploy an agent on the customer network to collect data and learn where they are vulnerable. Then you can generate a report and book ameeting to discuss where the issues are and possibly sell managed endpoint protection so you can provide an SMB better protection while building a recurring revenue stream.

1. Pricing may vary by jurisdiction and subject to change without notice.

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YOUR SERVICEYOUR AVERAGE

MONTHLY REVENUE1

(PER DEVICE)

YOUR AVERAGE MONTHLY COST1

(PER DEVICE)

Device Management Remote Monitoring + Managed Security

Managed Server $100 - 250 USD RMM: $5.75 USD / AV: $1.00

Managed Workstation $20 - 60 RMM: $2.00 / AV: $1.00

11Build Recurring Revenue from Managed CustomersManaged security is a central part of your service off ering. Security Manager: AV Defender provides you with easy management and rapid deployment while being cost-eff ective to deploy. Now you can replace the various antivirus solutions on your customer’s networks to reduce your support headache while improving your customer’s security levels.

1. Pricing may vary by jurisdiction and subject to change without notice.

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12SolarWinds N-able Has the People and Resources to Help You SucceedYOUR SOLARWINDS N-ABLE PARTNER DEVELOPMENT TEAM

Sales Engineering

Our team of sales engineers helps new partners get up to

speed on the SolarWinds N-able platform and helps experienced

partners master their skills.

Our partner specialists help IT service providers succeed

in Managed Services and provide business coaching to

experienced MSPs.

Partner Development

BEST PRACTICES GUIDE BUSINESS PLAN MARKETING

RESOURCES

Your guide to packaging your services into a repeatable

scalable business.

Your SolarWinds N-able Team will help you develop a strategy to increase profi ts and grow

your business.

Free marketing templates and resources to start

attracting new customers.

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13About SolarWinds N-able®

SolarWinds N-able®, is a recognized market leader in MSP business transformation solutions. Our systems and support provides the most comprehensive solution on the market today and includes: N-central, the industry leading remote monitoring and management automation platform, dedicated Partner Development Specialists, self-directed educational modules, customizable sales and marketing collateral, and help desk support services to help service providers quickly ramp-up and deliver the broadest range of new managed services at the lowest service delivery cost.

MISSION STATEMENT“To make our partners the world’s most successful MSPs”

Legal DisclaimerUse of this N-able Technologies, Inc. and its subsidiaries and affi liates (“Company”) website (this “Website”) is governed by the terms and conditions contained herein as well as the terms and conditions of the Privacy Policy posted on the Website (“Terms”). These Terms are legally binding on all users of this Website and constitute a legally binding agreement between you (“User”) and Company. By accessing this Website, User expressly and irrevocably agrees to the Terms and to abide by the Terms. These Terms currently list Company’s current policies and terms and conditions, but, as noted below, the Terms may be adjusted from time to time at Company’s discretion. If the User of this Website does not agree with any of these Terms, User may not, under any circumstances, utilize the Company Website.

OUR AWARDS