Partner Playbook: Small Business Managed Services

1 Partner Playbook: Small Business Managed ServicesTransforming Your Business Growth and Profitability with a cisco Small Business Managed Services PracticeThe information contained in this document represents the current view of cisco Systems, Inc. on the issues discussed as of the date of publication. Due to changing market conditions, it should not be interpreted to be a commitment on the part of cisco , and cisco cannot guarantee the accuracy of any information presented after the date of publication. This Playbook is for informational purposes only. It is up to each reader to carefully consider the statements and recommendations in this document and determine if the guidance is appropri-ate for his or her unique technical or Business situation.

2 cisco MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. 2010 cisco Systems, Inc. All rights of ContentsIntroduction 4 About This Playbook Managed Services Defined: Small Business Solution ProvidersSection 1 Overview of Small Business Managed Services 5 Managed Services Directly Answer the Industry Trends and Challenges Affecting Your Opportunity to Grow and Manage Your Business Managed Services Represent a Significant Market Opportunity for You as a Managed Service Provider (MSP) The Benefits of a Managed Services -Centric Model are Significant Section 2 What Success Looks Like 10 Benefits for You and Your Customers are Driving Managed Services Adoption What Do They Look Like?

3 Successful Partners Carefully Leverage their Existing Business How Does That Apply to Your Business ? Successful Partners Have a Distinct Profile Managed Services Business CasesSection 3 Key Management Decisions 14 Key Topics Drive Business Decisions Topic #1: Building Your Managed Services Portfolio Topic #2: Your Total Business Investment Topic #3: Resource and Skills Identification and Acquisition Topic #4: Optimal Size of Your Managed Services Practice Topic #5: Organizational Structure and Delivery Staffing Topic #6: Creating/Expanding a Sales and Marketing Plan Topic #7: Resources for ExecutionPartner Playbook.

4 Small Business Managed Services 2 Partner Playbook: Small Business Managed Services 3 Section 4 Establishing Successful Managed Services Operations 17 The Initial Steps to Creating the Right Managed Services Offerings. Selling Methodologies and Incentives Customer Ramping Process Service Delivery Operations Customer Relationship Management Process and Infrastructure Financial Management Organizational DevelopmentSection 5 Assessing Your Readiness Are all the Pieces in Place for 21 Your Business to Succeed? How do you determine Your Readiness?

5 What is the Profile of a Partner Who is Ready to Go? What are the critical Funding and Financial Management Considerations? What are the Risks to Your Business ? How will you Manage and Mitigate Your Unique Risks? Tools Readiness ChecklistSection 6 - Resources to Help Success Stories and Information 25 Examples of Successful Small Business -focused Partners Benefits of Partnering with cisco to Build Your Managed Services Business Managed Services Offerings That Leverage cisco Technology Why Choose cisco ? What Additional Resources are Available?

6 Partner Tools - Checklists, Worksheets and Case Studies Link to Case Studies: Lessons Learned From Experienced MSPs Note: This document contains multiple hyperlinks that are underlined and blue that link to useful resources, information, and demonstrations. IntroductionAbout This PlaybookThis Playbook, Transforming Your Business , is provided as a guide for company owners who are considering transitioning current Business offerings or expanding an existing Managed Services practice in order to propel the growth and stability of their Business . While not intended to review every topic in detail, this playbook covers the basics of setting up your Managed Services practice and provides a summary of upside, opportunities and risks you will need to consider.

7 This document introduces the opportunities for growth and profitability that can be realized through a well-planned move to Managed Services . It describes the profile of successful Managed Service Providers (MSPs), discusses the key management decisions that Business owners need to make, and identifies critical operational components. Lastly, this Playbook provides valuable tools for Business owners to assess their readiness and take the next steps toward building their MS playbook provides guidelines on the critical operational components of your MS Business , including Financial, Operational, Sales and Marketing structure, process and procedures.

8 There are many key areas that will need to be further defined by you and your team as you expand and grow your Managed Services Business . In addition to using this Playbook as a reference tool to get started, consider obtaining assistance from a key vendor or outside consulting firm that can offer experience to assist you as you transition your Services Defined: Small Business Solution ProvidersManaged Services are recurring Services provided either on-site or remotely on a contractual basis. Through a comprehensive Managed Services contract, you are the outsourced CIO for your Small Business clients, providing them IT Services and expertise at a level and cost that would normally be beyond their reach.

9 Managed Services Providers (MSP) provide a full suite of infrastructure support Services , defined by a Service Level Agreement (SLA) and offered at a fixed monthly price to the client. This full suite of Services can include remote monitoring, alarming, and reporting for LAN and WAN infrastructure Services , security Services , and voice Services ; proactive maintenance, onsite support and help desk for additional components of the network or UC infrastructure, and can also include computing hardware such as desktops, servers, IP phones and printers. Partner Playbook: Small Business Managed Services 4 Managed Services are: Managed Services are NOT: Outsourcing of an IT management process from the customer to the MSP.

10 Defined and Measured by Service Level Agreement (SLA). Predominantly pre-scheduled, preventative and proactive. Billed monthly at a fixed, scalable rate, often priced on a per unit Managed basis. A product sale followed by a support contract. Measured by time invested or billed on a time and material basis. Reactive, break/fix Services ; the goal is to prevent a break in the system. Projects. As a Solution Provider, developing a significant Managed Services practice can be highly profitable and provide ongoing stability. As companies of all sizes continue to look at ways to cut costs, having a single service provider who will establish and maintain a top-level IT infrastructure that is secure and that helps them run their Business more cost effectively, is of tremendous value.