Are Denver Managed Services Prices Transparent?

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August 25th, 2016 at 09:14
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Are Denver Managed Services Prices Transparent?As demand for colocation grows, Denver managed services will be key to successfully supporting startups, as well as small and mid-size businesses. Because of this, the business of managed services providers (MSPs) has become highly competitive with the only differentiators usually being efficiency and cost.

According to research by Kaseya, MSPs have been rapidly growing and are mostly driven by offering enhanced security services. Further, the majority of MSPs have recorded a growth of more than 20% over the last three years.

Like anywhere else, Denver managed services are determined by the needs of the market. For example, if there are a large number of small companies in the area, you can expect them only to go for services that are offered at a lower cost (as a result of low revenue). But regardless of the size, all businesses will seek the best ROI

As all companies won’t need the same solutions, prices can be quite relative. These days, what’s driving growth in the sector are emerging services like:

  • Cloud monitoring
  • Hosting services for client equipment
  • Backup and recovery
  • Desktop and server management
  • Enhanced security
  • Identity Access Management (IAS)

So, are managed services priced transparently? Not, exactly.

Competitors are Watching

If you’re a successful MSP, you probably already know your competitors are keeping an eye on you. As pricing is relative to the needs of the target market, there is no clear cut way to identify competitor prices. Hence if you publish your prices on your website, it’s safe to say competitors are looking.

More often than not, competitors will begin to focus on you when they start to lose market share. This will motivate them to try and figure out what you’re selling, how you’re selling it, and what you’re charging for it.

Think about your past experiences with prospective clients. Did you ever speak to a prospect that was more interested in your prices than anything else you had to say? While not always the case, it’s possibly an MSP sent a friend or family member your way to understand how you price your services.

Is the potential customer only interested in the proposal and doesn’t want to proceed to a technology audit? 

If the prospect mentions they’re ready to leave their current managed services provider at the drop of a hat but aren’t engaging in the sales process, a red flag should be raised in your mind.

The Bottom Line

Denver managed services providers always need to be vigilant. The fact that sometimes hours go into a proposal just to be a place holder can be frustrating. But figuring out it was for a competitor is even worse.

The reality is, if you differentiate on a particular service or unique offering, you won’t have to compete on price. And if competitors are checking out your business, you must be doing something right!


How has your Denver managed services firm handled pricing transparency? Share your thoughts and experience in the Comments section below.


And if you’re looking for a data center in the metro Denver area, be sure to watch our webinar recording on The Road Ahead for Denver’s Outsourced IT Services Providers.


Webinar Recording: The Road Ahead for Denver's Outsourced IT Services Providers: Watch On-Deman