Remote IT infrastructure monitoring and management services provider NetEnrich has announced it has enhanced the services it offers specifically for the SMB market.
Most of the end customers NetEnrich sells to through its 100% channel model are larger, but the SMB segment is still important to the company.
“From a revenue perspective, the majority of customers are not SMB, but from the number of end customers, they are the majority,” Justin Crotty, senior vice president and general manager, NetEnrich. “Most of our solution providers in the U.S. focus on the midmarket and enterprise, but they have a long tail SMB business, so while the revenue is not as significant as the midmarket or enterprise, it’s still very rich.”
Crotty said that while this revision of the SMB services is less dramatic than a previous reworking, it is still significant.
“These have to evolve as partner business models evolve and the market evolves,” he said. “We did our first SMB revision three years ago, when we went from global NOC services to a more comprehensive SMB offering, more logically packaged and priced for SMBs. This is a smaller revision but significant in the fact we are trying to drive three basic things.”
Crotty said the first of these is to drive good partner experience.
“In response to partner feedback, the offerings have been simplified to some extent even though services have been expanded,” he said. “The breadth of services supported has increased and levels of services provided has expanded a bit.”
A third service level, SMB Smart Escalate, has been added to SMB Manage and SMB Aid, the two previous service levels. It takes advantage of the recently announced NetEnrich platform enhancements.
“Smart Escalate is designed to support providers who are buried in alert noise, where their techs are overwhelmed by mundane tasks such as ticketing and remediating,” Crotty said. “We become the alert triage, doing the alert validation for the SP/MSP. It takes the grunt work off their teams, because it doesn’t make any sense to have a Cisco engineer watching lights. It makes more sense to have him out on projects or working with clients.”
Crotty said the new service level provides their partners with more options.
“The flexibility of our SMB offerings allows partners to vary the service level they leverage us for,” he said. “For instance. in an area where their practice is comparatively weak they may ask for SMB Manage, while where they are strong they may ask for SMB Smart Escalate.”
The second objective in the revision is to broaden the scope of new offerings NetEnrich supports in the SMB pricing model.
“Before the new release there were some pieces of technology we wouldn’t support in the SMB footprint, such as networking, the low end storage space and the low end of complex technologies,” Crotty said. “It’s not a huge revamp of what we support, but it is an expansion.” This again was a specific response to partner requests.
The final set of changes involve price reductions.
“We drove the SMB price points down a little bit to make them more competitive, and respond to SMB market competitiveness,” Crotty said. “It reflects that SMB accounts have been commoditized.”
The discounts vary depending on the technology.
“They are between 10-25%,” Crotty said. “We made adjustments where we were overpriced.”
Crotty maintained that the value proposition NetEnrich can offer VARs with these services is providing the resources at a more effective price point compared to the VARs’ own engineer labor.
“A lot of these MSPs say they are doing well, but if you ask them a lot of hard questions around costs and margins, if they are being honest they will say labor costs are really dragging down margins,” he said. “They may say they make 50 points on the managed service business, but if they do, they don’t consider the cost of expending these assets in lower value activities. We help them understand the cost of this business is not only what they pay NetEnrich, but also what they pay their own guys, and how they leverage them all to drive value for the client.”