Why You Should Be Selling

Business Continuity ServicesBusiness Continuity Services5 MSP Tips to Get Started

April 2012

Agenda

• Introductions

• Our speaker

• Why BC/DR?

• How Kaseya MSPs do BC/DR• How Kaseya MSPs do BC/DR

• 5 Tips to get started with BC/DR

• Recap

• About Kaseya

• Q&A2

These are business

3

These are business

opportunities for you and

your customers.

4

This is one, too.

Our Speaker

Alex BrandtDirector , US Sales Kaseya

5

Kaseya

About Alex: 20 years IT management experience. 4 year Kaseya veteran. US Team Lead for inside sales organization at Kaseya. Former director of alliance partners at CA. Former network administrator at Nestle.

About Kaseya

• Enterprise-class IT systems management for everybody

• Value Proposition– A single Kaseya user can proactively manage 1,000s of automated

IT systems and network tasks in the same amount of time required by a team of technicians using other techniques

• Key FactsFounded 2000

Patented

#7,827,547

#7,620,707

#7,895,320

– Founded 2000

– Privately held, no debt, no external capital requirements

– 33 offices worldwide in 20 countries with 450+ employees• 12,000+ customers

• 60%+ of top Global MSPs use Kaseya

• Millions and millions of assets managed

– Patented IT service delivery process & remote IT management process• 24 patents pending

– Common Criteria (EAL2+) certified and FIPS 140-2 security compliant

– ITIL v3 compliant6

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Why BC/DR?

Industry Experts Say

• More than 90% of companies that

experience one week of data center

downtime go out of business within 12

months– National Archives and Records Administration, 2010– National Archives and Records Administration, 2010

• 89% of IT managers test their disaster

recovery/failover systems only once a year or

not at all– Brilliant Ideas LLC for Scalent Systems Inc., 2011 (via

@IngramMicro)

8

Analysts Say

• 70% of ALL successful attacks on computer networks were carried out by employees and insiders

• Companies lose an average of $84,000 for • Companies lose an average of $84,000 for every hour of downtime

9 Source: IDC, 2011

Business continuity services remains one of

the biggest focus areas for today’s CIO…for

every firm

End User Customers Say

Average recovery time from major outage is 4 hours

70% of respondents said it would take at least four hours for their servers

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70% of respondents said it would take at least four hours for their servers

to recover completely from failure, including restored software, configuration

and network and storage connectivity.

Kaseya Survey of 435 Global5000 IT Executives, 2011

4 Big Impacts of IT Disruptions

• Decreased access to key data– Compromised operations

– Data corruption

– Transaction loss

• Decreased business momentum– Delays in processing– Delays in processing

– Delays in order delivery

• Decreased revenue– Lost sales (too!)

• Increased risk of “credibility hit”– Jeopardize reputation

– Impact customer service

– Impact customer support

11 Source: Kaseya Survey of 435 Global5000 IT Executives, 2011

$25K per event

But Is “Going Horizontal” Too Hard

to Solve, Too?

12

13

It’s real.

What Our MSPs Are Doing

• Verticalizing & specializing (horizontal)

• Delivering Business Continuity Services;

it’s the #1 growth opportunity

– Sites– Sites

– Systems

– Data (& recovery)

• Gathering certs & creds

• Presenting as gurus

• Publishing as thought leaders14

What They Say BC/DR Is

• Business continuity services

• Designing and installing reliable networks

• Proactive monitoring

• Proactive maintenance

• Helpdesk with rapid problem-resolution

Found money

• Helpdesk with rapid problem-resolution

• “Problem prevention”

• The “implemenation” of the plan for dealing with disruptions & disasters

• “Client velcro”

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BCS Elements Local or On Site at Data Center or

Cloud

• Assess & analyze

• Backup & replicate

• Restore– Failover & failback

– Recover & continue16

• Plan

• Report

• Train

• Systems

• Communications

• Data

• Processes• Functions

Kaseya for Business Continuity

Services

• “All-in-one”

• KOB for file level

backups

• KBR for systems • KBR for systems

backups

• KID for image

management

• Preconfigured

scripts, monitor

sets, and reports

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MSP GTM Strategy

� Target most profitable services

� Engage in strategic planning

� Quantify business impact and align with goals

Focus

Deliver

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� Increase staff expertise and optimize network

� Reduce risks and costs

� Facilitate highest standard of service delivery

� Increase demand for services and expand market share

� Connect customers faster

� Accelerate time-to-revenue

Accelerate

MSP Customer Reduced IT Cost by 44%

Business Continuity Services provides cost savings from:Reduced recovery infrastructure requirements

Reduced time needed to create and maintain DR plans and processes

Reduced cost needed for DR tests; eliminates IT staff overtime and application impact

Reduced financial exposure for customer during a major outage - recovery in a matter of hours, not days or weeks

The below captures an estimate of the cost savings provided by BCS when

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The below captures an estimate of the cost savings provided by BCS when used to recover from a major outage or disaster

Company that does $41M in revenue a year = ~$160K/weekday. Assume that BCS can achieve RTO of 2 hours instead of 10 hours compared to traditional DR plan.

= $ 70,000+X$20,000

Cost of Lost Revenue

Hours of downtime prevented

Lost revenue per hour

X X 1

Number of web stores

8.0X$7,500

MSP BCS Fee

Number of months

Monthly BCS fee

X12

44% savings

MSP Earned Incremental 17% Margin

Business Continuity Services provides incremental revenue and profit from:Prevention of lost business revenue due to outages at mission-critical, high-revenue applications

The below captures an estimate of the cost savings provided by BCS when used to recover from a major outage or disaster

BCS annual contract (12m months) billed at $7,500 per month. Assume 1 Junior Technician manages 100 PCs and 1 server using Kaseya Managed Services Automation bundle.

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PCs and 1 server using Kaseya Managed Services Automation bundle.

= 17 %- X$50,000

MSP Cost

Cost factor, including

setup, OH + software

Technician salary per year

X1.5

$15,000

Using value pricing ($120K contract) effectively

improves margin to 38%!

X$7,500

MSP BCS Fee

Number of months

Monthly BCS fee

X12

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Why Wait?

5 MSP Tips to Get Started

1. Know competition

2. Decide on offerings

3. Target prospects

4. Qualify prospects4. Qualify prospects

5. Execute on KPIs

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It’s possible.

1. Know Competition

• National providers

– These firms have one goal – get the customer on

the hook for a 5 year “hot-site” hosting contract

• Niche players in each region

– They are few in number, but they do very well

• Others

– Many are more marketing than MSP

• Status quo (ie, do nothing), where many

companies are today

23 Attack the weaknesses

2. Decide on Offerings

• What are clients drawn to?

– What’s your service offer?

– Local, data center, cloud?

• What services can’t they live with?

– Can you price those higher?– Can you price those higher?

• What services are least used?

– Can you remove them and reduce cost?

• Sell specialty services and consider a guarantee

– Is your ITSM solution ready?

• Earn non-IT certs (ie, DR Institute)

• Learn about compliance and write/speak about it

24 Create value

3. Target Prospects

• Firms with annual IT budget > $10 million are

definitely spending money on BC/DR

• Firms - with smaller budgets - that are highly

regulated need BC/DR

– Financial, healthcare, publicly traded

– And retail

• All companies need some level of recovery

capability and smaller project sizes are

common between $20K to $75K

25 Be precise

4. Qualify Prospects

• Is your company prepared for any type of disaster that may strike

the main worksite or data facilities?

• Do you have a plan that covers both IT as well as the business for

any interruption?

• Do you have any business drivers (regulations) that require a

comprehensive BC/DR plan?comprehensive BC/DR plan?

• What critical data do you depend on for operations or needs to be

protected?

• What is your backup strategy or process to ensure that this data is

protect?

• How sensitive is your business to security issues or compromises?

• Do you anticipate any strategic changes taking place in the near

term?

26 Be consistent

5. Execute on KPIs

• Develop KPIs & SLAs

– Define SLAs w/ your clients

• Average Response Time and Average Time to

Resolution

• Client Satisfaction Score

• No. of Tickets by Client and by Type

• Average Wait Time & Abandon Rate

• Average MRR per client

27 Be disciplined

Ready?

Know competition

Decide on offerings

Target prospects

Qualify prospects

Execute on KPIs

Go!

See where you fit

Provide value

See who you want

Go get them

Repeat

Kaseya Helps MSPs

• Higher revenue

– Integration gives you more services to offer

• Higher profit

– Integration means fewer techs per managed machine and cloud means pay as you go & grow

60%+ use

Kaseya

machine and cloud means pay as you go & grow

• Better service delivery

– Automation provides standardization, which means faster responses with less errors

• Better control

– Integration means it all ties together so you can actually see everything you need

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Kaseya for Automated Managed

Services• Comprehensive

– Automates all systems management tasks

– Expert RMM via Kaseya Live Connect & ITIL SD

– Integration friendly (CRM & PSA)

– Scalable and flexible– Scalable and flexible

• Uncomplicated– Lightweight, 1 agent

– Cross platform

– Thousands of pre-built scripts

– Easy to install & use via a single web console

• Affordable– On-premise or cloud

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www.kaseya.com/msp

We Can Help

• Learn more about Kaseya

www.kaseya.com/msp

• For a free live product demo

www.kaseya.com/demo

• For a free trial

Just for MSPsblog.kaseya.com/blog/category/msp

• For a free trial

www.kaseya.com/freetrial

• For a price quote

www.kaseya.com/pricequote

• To speak with us

www.kaseya.com/contactme

31@kaseyacorp/kaseya/KaseyaFan

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