How HoduPBX Software Eases MSP's Challenges
In today’s time, starting a business is extremely easy but running it and making it successful is extremely difficult.
Every business comes with its own share of challenges. For instance, Managed Services Providers (MSPs) face many unique challenges. However, every challenge is an opportunity to grow. As noted author Zig Ziglar famously quipped, “The successful business executive can handle challenges and solve problems at a remarkable clip.”
Noted entrepreneur, life coach, and bestselling author Remi (Sharon) Pearson rightly said, “It isn’t the challenge that defines you. It’s what you do with it.”
If you are an MSP, then you need to find the right solution to overcome your challenges. Only that would help your business to not only survive but thrive in the present age.
At HoduSoft, we happen to have just the right solution for all types and sizes of MSPs. That’s our multiple award-winning HoduPBX IP PBX software. With that, we have helped many new and established MSPs overcome a wide range of challenges they face day-in, day-out.
So what are the challenges MSPs face now-a-days and how serious are they? In this blog post, we have listed the various challenges contemporary MSPs face in today’s time and how our HoduPBX IP PBX software can help them overcome those challenges.
Challenges Faced by MSPs
Be it MSPs, Internet Telephony Service Providers, Cloud Service Providers, or Internet Service Providers, almost all professional service providers face a wide range of challenges. However, when it comes to MSPs, these types of service providers have their share of unique challenges. Let’s discuss those one by one:
1. High Volume of Clients
When a professional service provider serves a huge number of clients, they are more likely to face complex challenges. Can you guess what the average number of clients an MSP serves?
As per Datto’s 2020 State of the MSP Report, MSPs, on average, serve around 122 clients! The same study revealed that eleven percent of MSPs serve enterprise-level organizations while five percent of MSPs reported serving clients with more than 500 employees!
2. Rising Competition
Not many years back, a decade or so ago, not many MSPs competed to provide professional managed services to small and medium businesses as well as large organizations. However, as per the findings of a recent survey, nine out of every ten small and medium businesses have already partnered, or are considering partnering, with an MSP to outsource some of their IT needs.
Not just that. The number of MSPs have increased exponentially! As per Datto’s 2024 Global State of the MSP Report, rising competition is one of the major challenges MSPs face today.
3. Client Acquisition and Retention
In the present time, with rising competition, acquiring new clients and retaining existing ones can be a huge challenge for many contemporary MSPs.
A data released by Statista found that almost 35 percent of MSP executives around the world said that acquiring more customers is expected to be the leading challenge for MSPs.
4. Cybersecurity and Compliance
In the present time, cybersecurity and compliance is a big issue for MSPs, particularly the small and medium service providers. As per the data, the average ransom demand payment made by managed service provider insurance firms is USD 800,000. Of the 7,000 claims paid out by managed service provider insurers, over 99 percent of MSPs were categorized as small to medium organizations while less than one percent of them were enterprise-grade organizations.
When it comes to adapting to advanced security technologies, SOPHOS, a UK-based managed security solutions provider, found a massive gap. As per SOPHOS MSP Perspectives 2024 report, 39 percent of MSPs report major setbacks when adapting to sophisticated security technologies.
5. Adoption of Omnichannel Communication
Even though many MSPs support omnichannel communication, the adoption is not fully comprehensive. For instance, a considerable number of MSPs don’t use e-mail to market their list. As per a poll conducted by MSP Success, 34 percent of MSPs that took part in the survey said that they don’t use e-mail to market to their list.
Apart from that, some MSPs don’t have the right integrations to support omnichannel communication. Such integration can range from SMS and MMS platforms, video conferencing, audio messaging, and more.
6. Average Close Rate Needs Improvement
In simple terms, average close rate is the percentage of sales leads that lead to a sale. Can you guess what the average close rate of MSPs is? A study revealed that the average successful closing rate of MSP sales staff across the board is 35 percent.
Out of every four initial sales calls, only one is expected to be successful. Even though the average close rate of many MSPs is not that bad, it is still relatively low and has huge room for improvement.
7. Lack of Proper Documentation
For many MSPs, the lack of proper documentation is a huge challenge. As per a stat, the lost time resulting due to lack of proper MSP documentation strategies has a direct cost of USD 14,000 per technical employee!
Not only that. It averaged out with a loss of opportunity cost of USD 35,000 per technician on average! So undoubtedly, the lack of proper documentation strategy is one of the biggest challenges for MSPs. The biggest opportunity for cost savings for MSPs is to improve or fix a poorly organized documentation strategy.
8. Risk Associated with On-Premise Servers
For MSPs, selecting the right type of servers can be extremely critical. Some MSPs make the mistake of relying on on-premise servers, which can be extremely risky during unforeseen circumstances such as during natural calamities and power outages. As per a study by Datto, the use of on-premises servers is declining, as just five percent of MSPs anticipate an increase in on-premises server use.
MSPs that go for reliable servers such as Amazon Web Services (AWS), Google Cloud Platform (GCP), Microsoft Azure, Cloud Connect, etc., enjoy better reliability. MSPs that rely on servers in their data centers also enjoy high uptime and reliability.
9. Multi-Currency Billing
A majority of MSPs are likely to have clients around the world. They can’t bill them and send invoices in their domestic currency. Instead, they must be well-equipped to deal with multiple currencies.
However, for some MSPs (particularly those without the right billing solutions), dealing with multiple currencies and different tax regimes is a big challenge. Such MSPs may find it easier to deliver exceptional service to their clients, but when it comes to billing, they are more likely to falter.
10. Dependence on Too Many Tools
Many MSPs have found to be relying on a large number of tools. Giving an example, Gaidar Magdanurov, the president of Swiss cybersecurity and data protection company Acronis, wrote in a recent article, an average MSP uses too many tools for Microsoft 365 alone!
When MSPs’ employees use so many tools at any given point of time, it can be confusing for them to manage their services efficiently.
11. Rate of Failure
Last but not the least, a considerable number of MSPs fail within the first two years! In a write-up, Gaidar Magdanurov wrote almost ten percent of total MSPs are shut down or are acquired every year.
Not just that. His company conducted a study and asserted that the days of MSPs primarily reselling hardware and software are numbered. According to Acronis study, traditional revenue streams of MSPs will steadily decline and the MSPs that are primarily reselling hardware and software will cease to exist.
Explore How IP PBX is Transforming the Landscape for MSPs
Key Functionalities of HoduPBX for MSPs
Now that we have discussed the challenges, it’s time to discuss the solutions. MSPs can overcome a lot of the above listed challenges by using the right IP PBX system such as HoduPBX. The award-winning IP PBX software is equipped with a wide array of business management features that can prove to be highly useful for MSPs.
1. Multi-Tenancy
For MSPs, multi-tenant IP PBX software solutions are extremely necessary. That’s because an MSP serves many clients and it needs to manage each of them as efficiently and effectively as possible. By using a sophisticated multi-tenant IP PBX software solution, an MSP can manage multiple clients on a single server. An MSP can also customize features for different tenants and can be extremely useful for MSPs with branches in multiple locations.
HoduPBX offers four different portals to MSPs and their clients. It allows admin tenants to assign user roles for their sub tenants. This functionality is useful when the tenant admin is overloaded with work or on a long leave. The user role functionality can empower sub tenants to take over major responsibilities of tenant admin.
2. Multi-Currency and Multi-Option (Prepaid and Postpaid) Billing Module
HoduPBX offers a built-in billing module which enables MSPs to define their rates. After MSPs purchase SIP trunks and DIDs from telecom providers such as Twilio and Telenix, they can either opt for prepaid or postpaid billing.
Using HoduPBX’s billing module, MSPs can define different taxes as well as select tax management companies such as Suretax and Ceretax. The biggest USP of HoduPBX billing module is that it empowers MSPs to send invoices to different clients for different services and bundled packages. Apart from that, it also has payment gateways integrated (such as PayPal, Stripe, Paystacks, CCAvenue, and more) to enable clients to pay for the services they used or availed.
3. Request Services
This functionality is a lifesaver for MSPs’ clients during emergency situations. Let’s suppose a client needs additional extensions or features whenever need arises. What will they do in such a situation? The answer is simple. By using HoduPBX, they can request services.
There is an option in the tenant portal, using which clients can raise a service request. Tenants not only can use the ‘Request services’ functionality when they need additional extensions or features. They can also use it when they need to reduce some extensions and features.
4. Auto Provisioning
Another biggest USP of HoduPBX is the auto provisioning feature. It would be a lot of hassle for MSPs to manually configure their PBX systems. That’s where the auto provisioning functionality proves to be immensely helpful.
By using a multi-tenant IP PBX software’s auto provisioning feature, MSPs not only can avoid manual configuration but can also remotely configure ringtones, wallpapers for IP phones.
5. SMS and MMS Integration
SMS and MMS are two of the extremely important features for MSPs. That’s because MSPs need to send a lot of text messages as well as multimedia files to their clients. The multimedia files can be in a wide range of formats such as jpeg, png, gif, mp3, ogg, pdf, vcf, txt, mp4, and jpg.
This is where HoduPBX proves to be extremely useful. Integrated with two leading SMS providers—Twilio and Telnyx—the IP PBX software solution can also do custom integration as per individual MSP’s needs.
6. Audio Conferencing
MSPs need to support clients in various locations and time zones. They also have multiple employees working remotely. It’s hard to imagine how tough it can be if MSPs don’t have the right platform to connect their remote teams as well as clients to stay connected via conference calls.
HoduPBX’s audio conferencing feature allows MSPs to connect remote teams and clients effortlessly. By using this, a tenant admin can create an extension and initiate audio conference calls. One of the major USPs of HoduPBX is that it enables tenant admins to add 1000 audio conference calls.
7. Platform Features
Every client is unique, and MSPs need the flexibility to cater to diverse business needs. The platform features in HoduPBX IP PBX software provide a wide array of configuration options for both resellers and tenants.
The platform features allow MSPs to configure and customize services based on each client’s requirements. Be it adjusting call handling rules or tweaking analytics reports, these customizable options ensure that every client gets a tailored solution that works best for their business.
8. Reseller Module
It’s not uncommon for MSPs to sell their services to third-party organizations, which are known as resellers. By doing that, they are able to expand their service offerings without having to manage each and every end-user directly. That’s a win-win situation for both the MSPs as well as resellers!
This is where HoduPBX’s reseller module proves to be extremely useful. The module allows MSPs to create tenant admin portals for resellers and provide them with limited rights.
9. White Labeling
When MSPs use any IP PBX software to connect with their clients and tenants, they would prefer to showcase their brand. An MSP’s brand is its reputation. And no MSP would want to underplay their brand power. So how can they display their brand name, logo, and design style?
The answer is simple, by using HoduPBX’s white labeling feature! Be it in Android and iOS to Chrome Extension, Mac, and Windows, HoduPBX’s white labeling feature would reflect across all platforms.
10. Real-time Analytics and Reports
For MSPs looking to fine-tune their services and decision-making, real-time analytics is an absolute game-changer. HoduPBX IP PBX software comes equipped with sophisticated real-time analytics and reporting features.
With over 80 types of real-time reports, MSPs can track call volumes, agent performance, and customer satisfaction metrics. This data enables MSPs to make quick adjustments, spot trends, and deliver a consistently high level of service, ensuring client needs are always met promptly and effectively.
All In All,
As the demand for MSP services continues to rise, so does the pressure to deliver seamless communication, efficient support, and scalability.
That’s one of the reasons why MSPs are facing several challenges in today’s time. At HoduSoft, we not only understand the challenges of MSPs, Internet Telephony Service Providers, Cloud Service Providers, and Internet Service Providers, but also their diverse needs.
HoduPBX not only addresses contemporary MSPs’ challenges but also enhances the overall service offering by providing robust features designed to improve operational efficiency and customer satisfaction.
With HoduPBX, MSPs can leverage a comprehensive communication platform that simplifies their workflows, enhances productivity, and leads them to success.
As an MSP, if you are looking for the right solution to overcome the wide range of challenges, then you may consider HoduPBX IP PBX software. Contact us today to book a free demo and know what the software can do for your business.
