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MSP Minute
May 27, 2021

A 64% Chance of Device Failure? How to Easily Flip the Odds in Your Favor

Did you know that 64% of managed servers are out of warranty? To help turn this loss into a win, this week’s MSP Minute shares a 3-point plan for boosting your MSP’s success with Asset Lifecycle Management.


Hey, I came across a really interesting number the other day, the number was 64%. What 64%? So that was actually 64% of the servers out of warranty under the management of ScalePad. But basically, most of the IT devices are out of warranty, more than two third. So it's a little bit mind-blowing, but if you think about that, the implication's a little bit more weakening that two third of the relationship between the MSPs and clients. Because of this fact, is actually set up for a lose-lose relationship.

So what that means, basically, when you have a device like a server, out of warranty and it fails, it's extra work for you. So you lose. The client is going to second-guess whether you are the proper company to work with for instance, and they are going to lose because they are going to have outage or something like that as well. So that's always a problem to have items out of warranty. But if you think about that, it can be really prevented by proper asset lifecycle management, which is not really a huge deal, but it's basically just admitting something. That you, as an MSP, is the adult in a room. And you have these little children, these clients, and they just want not to pay for extra. They want not to really pay for this warranty service. But you are the adult. You have to set the rules and you have to stand your ground that "No, this is not okay."

And just putting couple of things in place, it's really easy to manage. The first is creating some policies around that. Like, "No, that is no such a thing that a device out of warranty. We are not managing that." Many MSP we know actually enforce that. And they are more successful. Why? Because it just creates more predictability. You protect your people. You set your people and your client in a win-win relationship in a long-term.

The second thing, think about this analogy. Is that going with a car you need an insurance. Without the insurance, that's illegal to drive a car. Why? Because people think the way that it needs to be covered some way. So the other thing is that these type of warranty issues shouldn't be really negotiable. It should be a non-negotiable. It should be like a backup. No, that is a backup. There is no such a thing that there is no backup on the environment.

So think about that. If you state those policies, you're able to enforce those policies, your life is happier. Client is happier. Everyone's happier. Yeah, sometimes you need to argue with our little children. We need to have these tough conversation and tough love, but that's basing the long term, creates a better relationship and a better business for you.

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