Reselling Office 365 doesn’t offer much in the way of profit for MSPs, although there are benefits for MSPs that come from offering Office 365 and it is possible to make Office 365 more profitable.
Before explaining where the margin is for MSPs in Office 365, let’s first take a look at the benefits for MSPs from offering Office 365.
Benefits for MSPs from Offering Office 365 to Clients
SMBs are increasingly moving from on-premises solutions to the cloud and Office 365 is one of the most popular cloud services. Office 365 now has more than 135 million commercial monthly users and that number is growing rapidly.
MSPs may not be able to make much from Office 365 alone, but by providing Office 365 MSPs can win more business and gain a competitive advantage. There is no outlay involved with offering Office 365 to clients, the product is great and meets clients’ needs, and money can be made from handling Office 365 migrations.
MSPs can also benefit from migrating existing clients from Exchange or SBS Exchange to Office 365. Office 365 is far easier to manage so they stand to save a great deal of time on troubleshooting and maintenance, which can be a major headache with Exchange.
By offering Office 365 you can win more business, reduce operational costs, and stay competitive. However, the best way to make money from Office 365 is through add-on services.
How MSPs Can Make Office 365 More Profitable
The margins for MSPs on Office 365 are rather thin to say the least. Many MSPs find that offering Office 365 on its own doesn’t provide any profit at all. Charging extra per license to improve profitability is an option, but clients could just go direct to avoid the extra cost.
The margins may be small, but managing Office 365 does not require a great deal of effort. You may only make around 50c or $1 per user but sign up enough clients and you could get a reasonable return. There is an opportunity for profit at scale; however, to make a decent return you need to sell services around Office 365.
One of the best ways to make Office 365 more profitable is by offering additional security services. Security is an area where Office 365 can be significantly improved, especially spam filtering. Microsoft has incorporated a spam filter and anti-phishing protections into Office 365, but they fall short of the protection offered by a dedicated third-party spam filter.
Phishing is the number one security threat faced by businesses and Office 365 anti-phishing protections leave a lot to be desired. By offering enhanced spam and phishing protection through a third-party spam filter, not only can MSPs make a decent margin on the add-on solution, by blocking phishing attacks and malware at source, a considerable amount of time can be saved on support.
There are plenty of other opportunities for selling third-party solutions to make up for the lack of options in Office 365. Email archiving is an easy sell and a quick win for MSPs. An email archive is important for compliance and security, saves on storage space, and improves efficiency, and gives clients access to emails from any location.
Spam filtering, email archiving, web filtering, and encryption can be bundled together as an enhanced security package, with each element providing a decent return for MSPs. Given the cost of mitigating a data breach, by preventing breaches, an enhanced security offering will pay for itself. Consequently, Office 365 security should be an easy sell.
Office 365 MSP Add-ons from TitanHQ
For more than 20 years TitanHQ has been developing innovative security solutions for businesses. Today, more than 7,500 businesses are protected by TitanHQ security solutions and more than 2,000 MSPs have signed up to the TitanHQ MSP Alliance Program.
All TitanHQ solutions have been developed from the ground to meet the needs of the SMB marketplace and MSPs. TitanHQ’s spam filtering solution – SpamTitan, email archiving solution – ArcTitan, and web filtering solution – WebTitan, save MSPs support and engineering time, have great margins, and can be easily integrated into MSPs security stacks to make Office 365 more profitable.
To find out more about TitanHQ’s MSP offerings, for details of pricing and MSP margins, contact the TitanHQ MSP Alliance Program team today and take the first step toward making Office 365 more profitable.