Many MSP tech providers believe "they can” increase prices and customers will have to accede. SuperOps.ai's philosophy is different.
A hint of inflation in the market and a number of PSA and RMM software vendors, like Atera, N-able, and Syncro have begun announcing price increases. It is true that we are passing through some rough weather when it comes to the macroeconomy, inflation is on the rise and so are talent costs and other costs associated with software companies, like server costs. But, those do not justify the steep rise in prices by some of the MSP technology providers - some of the hikes are at over 40%.
The making of software or SaaS in itself is not very expensive. So, what gives?
Many vendors have invested in expensive sales and marketing engines and the companies have cranked up prices to finance the high costs. M&A activity is also a contributing factor. When companies shell out hefty sums to acquire products and teams, someone needs to eventually foot the bill, and that someone is the customer.
Another reason is something Forrester Research has touched upon: “Software solutions are mission-critical in nature and vital to the day-to-day operations of a modern enterprise. Leading software vendors can raise prices consistently without losing demand, resulting in high and stable margins."
Many MSP tech providers believe “they can” increase prices and customers will have to accede.
Now, if these vendors were investing heavily in R&D and in product development, then the hikes may have been justified. But we do see vendors who have not had any significant updates or improvements for months or years on end, and yet they have increased their prices.
At SuperOps.ai, our philosophy is very clear. We invest in product development and R&D. We believe in sustainable organic growth. We build our platform from scratch and every enhancement, new functionality, or feature is built in-house. No expensive acquisition costs are passed on to our customers. We do not invest in fancy c-suite salespeople, whose costs we need to justify..
Now, you can’t really control whether a vendor will raise prices or not, but you do have complete control over what software you use. Managed Service Providers (MSPs) need to make the decision on what software they need based on the following:
What you need from the software
Why buy a private jet, when all you need is a car? Sometimes, we are all dazzled by the shiny bells and whistles or the sheer number of features a software boasts of that we do not stop to think: “Do I really need all this?” You first need clarity on what you need and how that platform, software, or tool fits your needs.
Don’t be blinded by the brand
A big brand does not necessarily translate to a great product or good service. An old, legacy brand will be too set in its ways to keep updating their products and to keep pace with new advances in technology. Once you know what you need from your software platform or tool, use these requirements to evaluate the software. Don’t go by age of the vendor or by the brand recall.
Opt for value, not for low cost
I will never tell you to buy cheap. Look for value. Yes, the software does not have to be expensive, but if something is priced “too good to be true”, then there’s a reason for it. In some cases, companies offer an entry-level price and it is only on signing up that you realize that to use the features or functionalities you truly want, you need to pay up extra dollars.
You do not want to be switching software too often. If the software you are choosing is not taking advantage of technological advancements or if it is stagnant and showing no real signs of improvement, then you will eventually have to switch. It is better to choose a platform that can grow with you.
Considering how integral the PSA & RMM tools are to MSP operations today, make the choice wisely.