In the hyperconnected era, edge facilities have become more prevalent and important. However, most discussions involving edge computing and edge facilities point to the disruptive nature of the technology and how it’s the viable path forward for low-latency use cases across a range of verticals. What isn’t brought up is the fact that for distributed edge sites to succeed, it requires physical support infrastructure that maximizes performance, reduces downtime and ensures operational efficiency.
Before we dive, let’s define the physical IT infrastructure? To the end-user — this layer comprising a fleet of UPS systems, power distribution units (PDUs), cooling technologies, environmental monitoring controls and physical security systems is almost invisible. But for an IT manager, it is fundamental to keeping critical IT equipment such as servers and storage gear humming efficiently, reliably and providing uninterrupted service in the event of an outage.
Whether one operates a branch office, a healthcare facility, an educational institution, a big-box grocery chain or a micro data center — the underlying edge infrastructure is pivotal to IT efficiency and near-continuous uptime essential for mission-critical facilities. In this light, remote monitoring and management solutions that provide in-depth visibility, enable a more proactive approach to networked device and system maintenance and build operational redundancy to prevent downtime from equipment failures are invariably important.
See More: How to Protect Hybrid IT Infrastructure Against Physical and Environmental Threats
Looking Ahead: Shift to Edge Creates an Unprecedented Market Opportunity for MSPs
As more organizations continue the march to distributed sites with edge-enabled infrastructure, the role of the managed service provider (MSP) comes into sharper focus. Most organizations, particularly mid-sized companies, lack the skills, resources, and a comprehensive solution to remotely monitor geographically dispersed IT assets such as single-phase UPSs and cooling equipment across multiple sites. Besides ensuring visibility across hybrid IT infrastructures, IT leaders face other unknowns.
An IDC report, Maximizing Business and Operational Resilience Through Services, commissioned by Schneider Electric, finds that trends such as operational efficiency and sustainability goals are pressuring existing processes. Additionally, profitability can be impacted if processes are not streamlined and resources are not utilized efficiently.1
Besides, there is no one-size-fits-all approach for distributed edge facilities that come with their own unique set of challenges. According to the study, 38% of respondents reported events that led to production losses, while 26% of respondents said facilities lacked optimal physical security, resulting in business disruptions.
This underscores the growing significance of MSPs and how they play an important role in complementing an organization’s edge and power management strategy. The IDC research bears this out —nearly 30% of respondents from multiple industries found service providers play a pivotal role in scaling edge environments across regions. An equal percentage of survey takers believe they provide mission-critical support.
Furthermore, as IT leaders take their business to the edge, services such as remote monitoring and device lifecycle support will become increasingly necessary, especially in remote sites that lack on-site operations teams. For MSPs, this represents an opportunity to boost agility and scalability at the edge with integrated RMM solutions, drive preventive maintenance and provide timely on-site support for remediation of critical IT assets — a chief differentiating factor in an increasingly remote world.
See More: How a Scalable, Integrated Remote Monitoring Solution Can Supercharge Your Hybrid IT Strategy
Why MSPs Should Care About Power Management at the Edge
Compared to other technologies like cloud and virtualization, edge and distributed IT infrastructure has a relatively low entry barrier. For instance, 8 in 10 MSPs still offer traditional break/fix services, the 2019 Trends in North American Managed Services, a report by SolarWinds and The 2112 Group finds.2 And only 27% of MSPs currently offer managed power services, showing a huge untapped opportunity for solution providers who can capture a bigger share of this market by providing remote monitoring and on-site support.
Another big overarching trend is the shift away from hardware to software-as-a-service that has taken hold of the IT landscape. By shifting to a software model, MSPs and IT solution providers can complement their portfolios, close the loop faster on customers with end-to-end managed power services and maximize revenue per client.
Solution providers looking outside the pure-play IT services arena can find massive untapped growth opportunities to increase their recurring revenue streams by reselling software and services for clients’ critical IT infrastructure needs and open the door to hardware refreshes. For instance, MSPs can alert clients about a UPS battery that needs a replacement before it causes unnecessary business downtime. By providing timely and effective on-site support and remediation, MSPs can move up the value chain, reinforce customer relationships and boost their bottom line.
And in cases where customers are using legacy UPSs that create unnecessary heat, MSPs can recommend an upgrade and help the client reduce energy consumption. This means they are better-positioned to generate revenue from the installed base and create upsell opportunities, in turn boosting profitability.
Hence, by transitioning into a single point-of-contact for all things edge infrastructure and power management related — forward-thinking value added resellers (VARs) and MSPs have numerous opportunities ahead to meet the rapidly evolving expectations of organizations seeking device-agnostic software and digital services for edge management.
See More: 3 Reasons for MSPs to Level Up With Managed Power Services
Raise the Bar & Profitability With the Right Vendor Partner
To capitalize on the growing market opportunities and differentiate themselves as a trusted advisor, MSPs need the right vendor partner with a comprehensive product portfolio and global reach to expand their practice with sophisticated digital solutions in high-growth areas like edge and increase overall revenue growth.
Schneider Electric’s Edge Software & Digital Services ProgramOpens a new window is purpose-built to help solution providers succeed in an evolving technology landscape, boost profitability, and make the right recommendations for their customer’s edge environment. By offering a host of support tools, financial benefits and certifications, Schneider Electric provides inroads to building rewarding managed power practice and land bigger deals.
With edge footprints growing and becoming more complex, this IT partner program offers VARs and MSPs several go-to-market solutions that fit into their business portfolio and provide value to their customers and prospects. The EcoStruxure IT platformOpens a new window offers pathways to broaden the portfolio with flexible, scalable and efficient solutions that permit MSPs to utilize a single solution or a blend of services, all from a single vendor.
It also stands apart from other programs with lifecycle rebates that provide MSPs and VARs financial benefits, in turn helping them grow business successfully. Additionally, certification training allows solutions providers to gain formal internal training and business acumen about digital remote monitoring software and services and sell solutions tailored for edge environments.
Here are 3 ways MSPs can unlock revenue opportunities with Edge Software & Digital Services Program:
1. Monthly recurring revenue stream
With so much riding on edge infrastructure, the demand for near-continuous uptime is inevitable. With EcoStruxureâ„¢ IT ExpertOpens a new window by Schneider Electric — the industry’s first multi-tenant cloud-based data center infrastructure management (DCIM) solution, MSPs are better-positioned to create competitive differentiation by monitoring connected assets round the clock. The software, designed for interoperability, can be easily integrated into existing remote monitoring and management (RMM) systems via public APIs, enabling MSPs to configure systems quickly and without delay.
By running the intelligent software which leverages big data and intelligent benchmarking from distributed environments, service providers can obtain operational insights, get real-time alerts for actionable planning, and capture revenue through monitoring and remote support of customers’ ecosystems. So, let’s imagine you are tasked with monitoring a remote industrial facility with 375 connected assets. At $40 per asset per month, you can make $15,000 per month with a 20–50% margin. All this, without any extra costs or the risk of relying on third-party resources.
(To know more about monthly recurring revenue, check out this guideOpens a new window )
2. Hardware refresh
With real-time multi-location monitoring, solution providers can keep a pulse on the health and availability of hardware in multi-vendor environments and gain depth into the performance and reliability of networked assets. The proactive attention to physical architecture will help MSPs understand and diagnose equipment conditions of distributed UPS fleets and PDUs, and assess whether a full or partial replacement is required to maintain performance as per industry specifications. In fact, with hardware refreshes, service partners can capture a greater share of revenue and generate up to $450,000 in revenue per year, according to Schneider ElectricOpens a new window survey data.
3. Retain customers and grow client base with flexible, on-site support
The benefits of automated preventive maintenance in distributed IT deployments are hard to deny. But without field support, that’s only a battle half-won. By bundling on-site support along with 24/7 monitoring to their service offering, MSPs don’t need to disrupt business operations for on-site servicing and maintenance. With Monitoring and Dispatch servicesOpens a new window , solution providers have access to the best, certified technicians for on-site remediation and field support, enabling MSPs to guarantee 100% uptime regardless of underlying conditions.
Riding the Edge Wave: Next Steps for MSPs
Without a doubt, long-term survival for MSPs depends on high-growth technologies. Failure to adapt and evolve can put them out of business. That’s why the right vendor partner is critical to your success and long-term growth. As organizations shift gears to focus on edge computing deployments and conduct pilot projects, solution providers have an unmissable opportunity to expand their portfolio with managed power services from Schneider Electric and meet growing customers’ expectations.
Want to know more about expanding your power expertise? Visit
Sources
1 Maximizing Business and Operational Resilience through Services by IDC & Schneider ElectricOpens a new window
2 2019 Trends in North American Managed Services: A Special Report by SolarWinds and The 2112 Group, 2019Opens a new window