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MSP Sales Model Selling a Proactive Program

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Page 1: MSP Sales Model - secure.n-able.comsecure.n-able.com/DigitalBinder/docs/MSP_Customer_Sales_Process.pdfThe MSP Sales Model is a critical component to success with a proactive services

MSP Sales Model Selling a Proactive Program

Page 2: MSP Sales Model - secure.n-able.comsecure.n-able.com/DigitalBinder/docs/MSP_Customer_Sales_Process.pdfThe MSP Sales Model is a critical component to success with a proactive services

Table of Contents

Introduction ............................................................................................................................................................................. 3

The Proactive Program Sales Model ...................................................................................................................................... 4

Lead Generation Phase ................................................................................................................................................ 5

Segmentation ...................................................................................................................................................... 5

Prospect List Acquisition ..................................................................................................................................... 5

Education & Awareness ...................................................................................................................................... 5

Lead Identification ............................................................................................................................................... 5

Qualification Phase ....................................................................................................................................................... 5

Prospect’s Goals Established .............................................................................................................................. 6

Initial Presentation ............................................................................................................................................... 6

Assessment Phase ....................................................................................................................................................... 6

Assessment Tools Deployment ........................................................................................................................... 7

ROI Benchmarks Set ........................................................................................................................................... 8

Analysis of Assessment Results ......................................................................................................................... 8

Proposal Phase ............................................................................................................................................................. 8

ROI Presentation ................................................................................................................................................. 8

Closing Activities ........................................................................................................................................................... 9

Executive Close ................................................................................................................................................. 10

Design Solution ................................................................................................................................................. 10

Present and Negotiate Service Agreement ....................................................................................................... 10

Implementation Phase ................................................................................................................................................ 11

Deployment Project ........................................................................................................................................... 11

Ongoing Support ............................................................................................................................................... 11

Proactive Maintenance ...................................................................................................................................... 11

Emergency Support ........................................................................................................................................... 12

Execution of the Services Agreement ............................................................................................................... 12

Move/Add/Change ............................................................................................................................................. 12

Business Value Reporting ................................................................................................................................. 12

Technical Consulting – Virtual CIO ................................................................................................................... 12

Additional Services ............................................................................................................................................ 13

Appendix 1 ............................................................................................................................................................................ 14

Details of Each Sales Stage ........................................................................................................................................ 14

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Introduction

The MSP Sales Model is a critical component to success with a proactive services program. It provides a standardized, itemized, measurable and repeatable process for you to follow when selling proactive services to your customers and prospects, and a framework for finding, qualifying, assessing and ultimately closing a deal. Without a repeatable process, your sales costs and the results of your sales efforts will vary dramatically.

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The Proactive Program Sales Model

The Proactive Program Sales Model (Shown in Figure 1) is a procedural approach to interacting with a prospect up until the prospect is engaged in a proactive services contract. The model illustrates the interactions between your marketing staff, sales resources, engineering department and the prospective customer. sales model is divided into six major phases:

» Lead Generation – A marketing function that results in collecting the contact information of the prospect. This can be done in a number of ways such as an online or print campaign. The campaign features a compelling offer, perhaps a whitepaper download, that the prospect would receive in exchange for their personal contact information.

» Lead Qualification – Initial measurement of the prospect to determine if the prosect is an appropriate customer for the solution in question. Often, this includes an initial presentation about your solution and how it helps to resolve the prospect’s pain points. The result is a go/no-go decision to proceed to the assessment phase.

» Assessment – At this stage, technical and business information about the prospect is collected and analyzed to determine the exact solution that you will propose. This information also safeguards you from any surprises that might surface post-sale.

» Proposal – At this stage, you propose the solution to the prospect. This is an iterative process as you get feedback, reaction and requests for changes from the prospect that help you tailor the final recommendation.

» Close – Obtain final agreement by the prospect to buy your solution. This culminates in the prospect sign a support engagement document.

» Implementation – The deployment of the resources necessary to provide ongoing support for the customer.

Figure 1 MSP Sales Model

Lead Generation

Qualification Assessment Proposal Close Implementation

Design Analysis

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Lead Generation

Qualification Assessment Proposal Close Implementation

Design Analysis

Lead Generation Phase

The identification phase of the MSP sales model is a marketing function designed to fuel sales by generating demand and providing a wellspring of largely pre-qualified leads. The identification phase is broken into four key areas:

» Segmentation

» Prospect Identification

» Education & Awareness

» Lead Identification

Segmentation

The segmentation exercise identifies the target audiences for lead generation programs. A key step in the process involves identifying the criteria and demographics of an ideal prospect. These include organization size, type of organization such as private or non-profit, vertical, location, criticality of IT systems to organization success, sophistication of IT systems and likely presence or absence of dedicated IT resources.

Prospect List Acquisition

Based on the segmentation exercise, the next step is to supplement existing customer and prospect lists with additional names of potential prospects. These are organizations that fit the criteria defined in the segmentation phase that should be interested in managed services. These potential prospect names can be acquired through phone books, list brokers such as Dun and Bradstreet, local associations, Chamber of Commerce memberships, referral programs or other sources.

Education & Awareness

This phase involves ongoing activities to educate and raise the awareness of non-managed services customers and prospects on the benefits and value of moving to managed services. As many organizations are not familiar with managed services, it is necessary to educate them to increase the effectiveness of both the lead generation and sales activities. This might involve sending a regular newsletter highlighting customer success with managed services and industry background information, information sessions that focus on education, speaking engagements at association meetings and other activities.

Lead Identification

Lead identification includes targeted outreach programs to drive active interest in managed services and ultimately customer leads. These activities include email and direct mail marketing, cold-calling, local or Web-based seminars, advertising, exhibiting and speaking at trade shows and events, search engine marketing, public relations and other activities.

Qualification Phase

The Qualification Phase is to determine if one or more of your managed services solutions are a good fit for the prospect’s needs, and which solution would be appropriate to pursue. The steps within the Qualification Phase are:

» Prospect’s Goals Established

Lead Generation

Qualification Assessment Proposal Close Implementation

Design Analysis

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» Initial Presentation

» Agreement to Conduct an Assessment

Uncovering the goals of the prospect and these goals to your solutions is necessary to decide if there is any potential for a match. In addition, it helps you to determine how much effort you should put into a given prospect from a sales perspective.

Prospect’s Goals Established

Uncovering the essential needs of the prospect at this stage is critical, as it will not only lay the foundation for later closing the sale, but it will ensure that your salesperson is working towards positioning an appropriate solution to the prospect. At this point, a combination of open-ended questions to extract goals, pains and issues from the partner is a good way to start building a profile of the prospect. As well, there are certain attributes that will build the profile out further, and that can guide this discovery phase of the sales cycle. The questions to ask at this stage include:

» What are your organization’s primary lines of business?

» What is the budget allocated to IT services? Might it change depending on unmet needs?

» What areas of your business are dependant on IT resources? To what degree?

» How sensitive are areas of your business to downtime or reduced availability of IT resources?

» Have you experienced any painful issues with your current IT support model that have cost your business time or money or exposed it to risks?

» What centralized IT assets do you have? (servers, applications, etc)

» What critical data do you depend on for operations or needs to be protected?

» How sensitive is your business to security issues or compromises?

» Does your organization face any compliance issues or standards?

Initial Presentation

The initial presentation introduces a prospect to your managed services solutions in general and to your organization specifically. Additionally the initial presentation provides an opportunity for your salesperson to become familiar with the prospect’s business. The objective is to gain an initial understanding of which of your programs might best suit the prospect’s needs. You might already have an idea of solution to focus on from information gained in pre-qualification during the Lead Generation phase. The goal of the initial presentation is to generate enough interest in the offering to compel the prospect to agree to allow you to conduct a technical and business needs assessment. This often involves expense on your part and/or the prospect’s part, especially when working towards a more involved proactive or managed solution, so demonstrating the necessity of the assessment activities in the initial presentation becomes very important. As well, the prospect must agree in writing to authorize the assessment process and cooperate with its successful execution. The information gained through all facets of the assessment will provide the necessary data and benchmarks to make comparisons necessary for a Return on Investment (ROI) analysis in the Proposal Phase.

Assessment Phase

The Assessment Phase is vital to the sales cycle because it builds a detailed profile of the prospect’s environment, needs and attributes. The information gathered at this point is useful in several ways. Specifically, it helps the prospect to justify the purchase, dictates the limitations and features of

Lead Generation

Qualification Assessment Proposal Close Implementation

Design Analysis

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the solution design, and provides direct input into any ROI exercise that is created to compel the prospect to adopt the proposed solution.

The assessment might also bring to light certain items that may be unsupportable or out-of-scope – items that will be important when the time comes to structure the terms of the service agreement. The assessment phase of the Proactive Program Sales Model includes both sales and engineering activities. The successful outcome of this phase is an agreement by the prospect to have you develop and present a solution proposal. The major elements of the presales phase include:

» Assessment Tools Deployment

» Import of Assessment Data

» ROI Benchmarks Set

Assessment Tools Deployment

Deploying the assessment tools at the prospect location in a pre-sales mode accomplishes several objectives:

» Creates an accurate inventory of the IT assets that you will need to support and maintain

» Collects the baseline performance data that will be used:

o As comparative data for future reporting

o For customizing the ROI calculations used to illustrate the value of the program

» Helps collect information to later illustrate the value of the program – notifications, reports or other meaningful information can be provided to the prospect as part of the ROI presentation

The benefit of deploying the assessment tools at this phase of the process is that it provides sufficient time to tune the systems and collect baseline data before the infrastructure improvement project design stage begins. Essential information collected relatively quickly can be used to formulate the preliminary design concept (i.e. discovery, mapping and inventory). This is the overall type of solution that will be appropriate to satisfying the prospect’s needs, and will create the assumptions to be used in the proposed solution.

As more data is collected, you can use it to create baselines for performance and capability. This baseline data becomes very important once the deal has been closed and the process has moved into an ongoing support mode. You then need to illustrate ongoing value in terms of comparative service improvement.

The other information that needs to be collected and assessed at this point is the prospect’s business needs and requirements. This information stems from similar issues that were used at the time of qualification:

» Who are the business stakeholders in IT services and what resources do they rely upon?

» Document the basic business workflows of each department as they relate to IT resources

» How sensitive is each stakeholder department of the business to downtime or reduced availability of IT resources?

» Are there any painful issues with your current IT support model that have cost your business time or money or exposed it to risks? What measured losses or impact did they have?

» How much has been spent on IT support and services?

» How much has been spent on IT assets?

» In which areas have the current IT services failed to meet corporate or departmental needs?

» How does your business depend on the critical data for operations or needs to be protected?

» How sensitive is your business to security issues or compromises?

» How do compliance issues or standards impact your business?

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ROI Benchmarks Set

Assessment tools, specifically monitoring tools, need to be tuned to the specific customer environment in question. Until the tuning is complete, the information being collected is of suspect quality and the sheer number of events will drive up the responsive cost of the program. (Since every event must be investigated, the more extraneous, or false positive events, the higher the cost.)

Analysis of Assessment Results

The final results of the assessment exercises must be analyzed to determine what the best solution would be to achieve the prospective customer’s objectives. Examples of assessment results might include:

» Certain assets identified as needing to be replaced or upgraded

» Some software licensing is out of date

» Some devices are not covered by warranty

» Five server applications can be supported and maintained

» Two server applications must be supported via third-party vendors

» Security vulnerabilities detected can be addressed by upgrading the perimeter elements and designing and implementing new policies

» Users in remote offices cannot easily be managed due to low bandwidth connections

» The primary Internet connection to the office is saturated 15% of the time during business hours and might need to be upgraded

» If the central CRM application server fails, it costs the sales team $1,500 / hour in lost sales

» If the data on the primary fileserver is lost, the business could go bankrupt

» Old workstations being used for order processing by the finance department are slowing work by 25%

» The browser-based interface for an old custom accounting application has severe security risks and could expose private client information to unauthorized users

» Downtime issues appear to cost the company about $7,000 / year in lost productivity and $18,000 / year in lost sales

Proposal Phase

ROI Presentation

The objective of the ROI presentation is to illustrate the value of the program as it specifically related to the prospect’s business and ultimately move the engagement to the point of close. In order to do so, your salesperson will be armed with sufficient information to define the general contents of the service agreement, including:

» The scope of the initial baselining project

» The type of services to be included in the program

» The maintenance goals and parameters

» The type and number of devices the prospect is concerned about

» The level of service required by the customer

Lead Generation

Qualification Assessment Proposal Close Implementation

Design Analysis

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» Other constraints (financial or otherwise) that could affect the engagement

» The number of hours or allowances that might be included for:

o Scheduled maintenance

o Unscheduled support allowance

o Emergency support

o Service desk

o Minor project work

» The price of the proposed solution

» The overall cost of IT support for the customer (including savings and soft costs)

» The previous or alternate cost of IT support for the customer (including savings and soft costs)

» The resulting return on investment the customer will achieve by choosing the proposed solution over:

o The current support situation

o Competing solutions

» Any other element that is important for the customer and the MSP in order for the salesperson to put together a complete proposal for proactive services to be delivered to the customer.

Closing Activities

No matter how much information has been collected, and no matter how well-formulated the solution is, communicating the value of your offering to a prospect and securing the prospect’s agreement and commitment to adopt it is the culmination of all the work leading up to the close. In this phase, there are no questions left unasked by your salesperson, and no needs missed (if your salesperson has done the job correctly). The prospect might have final objections or unresolved questions that need answering. All activities at this point should move to justify the proposed solution, or perhaps make minor cosmetic changes to it.

As there is still limited end-user awareness of managed services, the typical SMB customer might be nervous about entering into a managed services engagement. Consider that a business looking for outsourced IT services is free to speak to a number of IT service organizations – many of whom could propose a completely reactive time-and-material or block-service engagement. Your salesperson will pitch the concept of centralized remote management and regular, preventative maintenance. While the prospect might not be happy with the support received previously through the chaotic/reactive models, there is still effort required to establish enough credibility and vision to allow the prospect to make the jump.

The main elements of the closing activities include:

» Executive close

» Present and negotiate service agreement

» Present deployment plan

» Execute service agreement (after deployment and baselining)

Lead Generation

Qualification Assessment Proposal Close Implementation

Design Analysis

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Executive Close

Almost invariably the customer will require an Executive Close before committing to a managed services engagement. The executive close involves the owner or senior executive of the managed service provider visiting the primary decision maker of the prospect to ask for their business. Managed services contracts symbolize a partnership between two companies requiring a certain amount of trust, and having an upper-level commitment is often a catalyst to closing the deal.

Design Solution

With the customer’s agreement to proceed with the proposed solution, the MSP must now work on the design and development of the IT solutions to support the business processes and goals of the customer. The MSP will create an implementation management (project) plan, select the staff and team required for the implementation, and create a deployment schedule.

To ensure the design effectively addresses the customer’s needs, the following steps are generally followed during the design phase, prior to full-scale deployment beginning:

» Describe

» Define

» Develop

» Test

» Analyze

» Validate

Present and Negotiate Service Agreement

The information required to define the services agreement will be found in the assessment analysis and resulting recommendations. The services agreement generally will exclude the initial baselining project that is needed to change the customer’s network to a state in which it can be effectively supported.

Negotiations are likely to proceed along with the terms of the services agreement. Depending on the size of the opportunity, your might or might not be willing to engage in dramatic negotiations, as changes to the terms and conditions could lead to an increase in your risk or costs.

The services agreement or associated attachments will include:

» Contract duration

» A complete description of the services to be provided

» Quantities of the services to be provided (hours, limits, parameters, goals, etc.)

» Terms and conditions, including:

o Indemnity

o Non disclosure

o Customer obligations

o Access rights

o Bidirectional opt-out and any associated penalties

» A listing of the devices and services under management

» Deployment plan

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Often, the stated support terms will not take effect until the services agreement is activated or executed, after the deployment is complete and a certain amount of time has passed while the environment is stabilizing. This could be a matter of a few weeks or several months, depending on the scope and complexity of the deployment.

Implementation Phase

Deployment Project

The initial deployment project is simply the act of implementing the infrastructure, configuration and setup changes recommended in the proposal. Its purpose is to get the customer’s IT environment to a state in which it is effectively supportable under the terms of the services agreement. The deployment project could take place in a very short amount of time or might be phased in, depending on how the deployment will impact the day-to-day function and availability of IT resources during the deployment phase.

Ongoing Support

With the execution of the services agreement, the relationship moves into an ongoing maintenance phase in which you are responsible for delivering the value that is promised within the service agreement. The key elements to ongoing maintenance could include:

» Remote Monitoring and Management Tools Deployment and Tuning

» Proactive Maintenance

» Responsive support

» Emergency support

» Move/Add/Changes (MAC) or minor projects

» Business value reporting

» Virtual CIO program (report analysis)

» Technical consulting

» Additional Services such as:

o Patch management

o Data backup and recovery

o Antispam

o Antivirus

o Antispyware

Some of the above elements might be covered within the scope of the agreement, while others may be out-of-scope. These will be defined by the structure of your specific programs.

Proactive Maintenance

Proactive maintenance performed in a carefully planned manner is the key to a proactive managed services program. An effective proactive maintenance program dramatically reduces the occurrence of unplanned downtime.

The delivery of the proactive maintenance must be tracked and measured. This tracking and measuring must be carried out both from the perspective of reporting to the customer that any and all performance objectives were

Lead Generation

Qualification Assessment Proposal Close Implementation

Design Analysis

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met, as well as from your perspective in order to understand how proactive services are being delivered, the costs associated to the delivery of those services and any potential risks to service delivery in the future. The collection of this information is designed to help you improve the predictability of the service and reduce your delivery costs..

The level of understanding required by the entire organization requires that you systematically train and retrain staff on these processes. Without this top-down commitment to service consistency, technicians will fall back into old habits and the goal of a predictable, repeatable, improvable technical process will be lost.

Emergency Support

Depending on the nature of the engagement, the customer may or may not be entitled to emergency support. If the customer is entitled to emergency support, the quantities of support will be clearly defined within the services agreement. You must track and report on all emergency support activities. Additionally, you must be able to differentiate between included emergency support (that is likely to be pre-authorized) and additional emergency support (approval of which might be needed on a case-by-case basis).

Execution of the Services Agreement

The sales engagement model concludes with the execution of the services agreement. Simply enough, the services agreement is executed through signing of the SA proper or other documents (purchase document) that specifically refer to the services agreement.

Move/Add/Change

As the customer’s business evolves, changes are invariably made to the IT infrastructure that are not significant enough to be called a project. Installing a new application, adding a desktop for a new employee and other minor tasks tend to fall into an area defined as ”Move/Add/Change”. The proactive MSP needs to understand that this will occur and that a certain amount of MAC time might need to be included in the program.

Business Value Reporting

Managed services, especially more sophisticated models, differs from traditional IT service models in that there is more emphasis on remote management and leveraging tools to automate processes. One of the results of this change is that the customers no longer see as much activity as they used to. Since customers have been taught to measure the value of IT in terms of hours of support, they might interpret the lack of onsite technical time as a reduction in service levels or service hours worked – possibly leading the customer to question whether you should reduce your service pricing. In order to manage this tendency, it is important that you re-educate the customer on measurement of IT value. Key elements used to illustrate value include:

» Report generation

» Report analysis

» Report presentation

» Newsletters

Reporting can be a powerful vehicle for illustrating value to the customer, if you provide the customer with the right types of reports. It can also be an opportunity for your sales team to stay in regular contact with the customer to ensure the customer is being managed effectively, and to spot any additional business opportunities or emerging customer needs.

Technical Consulting – Virtual CIO

Many MSPs include an amount of IT consulting time built into the program. Often marketed as a Virtual CIO program, the purpose of this consultative time is to help customers understand and plan their IT strategy. In

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general, this amounts to report analysis – helping customers understand how the information in the report affects their business.

Additional Services

Security management, antispam, antivirus, antispyware, help desk services, backup and recovery and many others services might be seen as optional IT services for customers. The customer has the option to retain responsibility for these services or arrange to have you be responsible for them. Generally it should make more sense for the customer to take advantage of your services as the tools you use are designed to optimize the ongoing costs and are deeply engrained within your processes.

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Appendix 1

Details of Each Sales Stage

Qualification Assessment Analysis Proposal Close Design Implementation

Qualifying questions:

- IT dependency areas?

- Downtime sensitivity?

- Recent IT pains or frustrations?

- Centralized IT assets?

- Critical data?

- Security sensitivity?

- Compliance issues?

Initial determination of what kind of solution would be appropriate for the prospect, and what kind of assessment is necessary

Signed customer agreement to proceed with assessment

Network mapping

Technical audit, inventory, documentation and needs assessment

Basic business needs assessment

Growth goals alignment

Identification of existing, chronic IT issues

Can devices and applications identified be monitored and supported?

What systems can have maintenance effort assigned to them to reduce failures and responsive support?

What are the cost impacts to the prospect of:

- Downtime

- Lost data

- Security breaches

- Other issues

What is the current cost of supporting the prospect’s IT operations?

What terms of service are able to be supported?

Preliminary design concept draft (simple)

Present the recommended maintenance plan, data protection, service terms and any other key aspects

Present an ROI comparison of proposed solution vs. current. Include historical “soft costs” such as downtime, lost productivity, risk of data loss, risk of non-compliance, etc.

Present a written proposal to detail the needs, assessed results and recommended solution. ROI results should also be present in the proposal

Refer to needs that are being addressed with the proposed solution

Handle final objections that arise

Get signature on proposal / execution document

Introduce Proactive service agreement

Final design plan for maintenance and monitoring of any support tools necessary to fulfill the agreement

Deploy maintenance and monitoring

Maintain as described within the service agreement

Respond as necessary within the terms of the service agreement

Monthly reporting, including ROI analysis vs. upgrade. Also show avoided incidents, avoided security risks, averted disasters and asset tracking

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Disclaimer

This document may include planned release dates for service packs and version upgrades. These dates are based on our current development plans and on our best estimates of the research and development time required to build, test, and implement each of the documented features. This document does not represent any firm commitments by N-able Technologies Inc. to features and/or dates. N-able will at its best effort, try to meet the specified schedule and will update this document should there be any significant changes. N-able reserves the right to change the release schedule and the content of any of the planned updates or enhancements without notice. Publication or dissemination of this document alone is not intended to create and does not constitute a business relationship between N-able and the recipient.

N-able Technologies is a market driven organization that places importance on customer, partner and alliance feedback. All feedback is welcome at the following email address: [email protected].

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About N-able Technologies®

N-able Technologies is the preferred global supplier of remote monitoring and management technology and business transformation services for managed service providers. N-able’s proven platforms offer the right combination of technology, people and processes, which help IT service providers to deliver highly profitable managed services to small- and medium-sized businesses. www.n-able.com

Copyright

Copyright © 2007 N-able Technologies.

All rights reserved. This document contains information intended for the exclusive use of N-able Technologies’ personnel, partners and potential partners. The information herein is restricted in use and is strictly confidential and subject to change without notice. No part of this document may be altered, reproduced, or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of N-able Technologies.

Copyright protection includes, but is not limited to, program code, program documentation, and material generated from the software product displayed on the screen, such as graphics, icons, screen displays, screen layouts, and buttons.

N-able Technologies, N-able University and Monitor Manage Optimize are trademarks or registered trademarks of N-able Technologies International Inc., licensed for use by N-able Technologies, Inc. All other names and trademarks are the property of their respective holders.

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