Managed Power Services: A High-Growth Edge Computing Opportunity for IT Solution Providers Facebook LinkedIn Twitter Email Larry HannMarch 8, 2021March 15, 2021 LinkedIn Viewed: 547 TAGSedge computingremote monitoring and managementmanaged power servicespower and coolingEdge Software & Digital Services Program The managed services market is growing at an estimated CAGR of 12% while edge computing spending is predicted to reach $33 billion by 2024. These markets intersect and, as such, create new opportunities for managed services providers (MSPs) and value added resellers (VARs) looking to add managed services. And clients are looking for help as they try to keep up with the new deployments and management needs of their distributed IT infrastructure. One area where opportunity for growth is especially ripe is managed power services, which currently only 27% of MSPs are offering. Why is this service in demand? Clients often don’t want to allocate their own resources to manage power particularly for remote IT sites and are looking to their IT solution provider to provide this service for them. With that in mind, MSPs and VARs should keep an eye out for managed power opportunities. For instance, a client wanting to reassign IT staff to more strategic tasks, or a company in IT expansion mode to accommodate digital transformation, may want to consider remote management for single-phase UPS, racks, and cooling equipment. The managed power services opportunity Power management is a tremendous value-add because it supports the ultimate goal of all managed services – maximizing uptime. It is particularly important in a distributed IT environment with multiple edge computing sites, which typically don’t have onsite IT staff. From the client’s perspective, solution providers are adding protection by ensuring power backup systems do not fail when needed. For providers, it’s a way to add long-term recurring revenue. This is a high-growth area because customers typically do not ask for power management services. When they hear about it, customers either didn’t know it was an option or just didn’t think about it. They like the idea of outsourcing power management to free up time for their staff. Usually, customers focus on new applications and capabilities, not the infrastructure that supports them. So, it’s up to the provider to make the case for managed power services. Recurring revenue potential Remote power management has serious incremental revenue potential. In fact, managed power services can generate up to 40% of an asset’s initial cost per year. Let’s crunch some numbers. If you manage 100 assets for small and midsize business (SMB) clients or 200 for enterprise clients, at $40 per asset, this adds up to a monthly intake of $4,000 or $8,000, respectively. If you’re managing a total of 375 assets, your monthly total is $15,000. When approaching customers about power management, providers also open the door to selling other IT services, such as assessment, implementation and hardware refreshes. If you can show power isn’t properly managed or there is a lack of visibility, you can make the case that other IT devices aren’t visible or properly managed as well. If the customer isn’t using an MSP, or isn’t getting quality service because power isn’t monitored, you have a chance to expand your reach and add to your bottom line. The path to providing managed power services Managed power services present an opportunity for existing MSPs and VARs looking to adopt the recurring-revenue model. Schneider Electric and its EcoStruxureTM IT platform offer multiple approaches to delivering managed power services along with the full support of a training and benefits program. Schneider designed several go-to-market offerings to allow you to say “yes” when customers ask you to manage their distributed power devices. As the partner, you can choose the option that makes the most sense for your current business maturity and desired level of investment. You have the choice of letting Schneider handle everything on your behalf, doing it all yourself, or something in between. You can start with one model and then easily adapt to another model if your business objectives change. The proactive, real-time insights of EcoStruxure IT optimize performance and mitigate risk, and its open design provides access and visibility. For example, providers can inform a customer that a UPS battery needs replacement before the unit fails or warn a customer of an increased security risk due to outdated firmware. Explore the various options in detail below to pick and choose an offer suited to your business – and access a quiz to evaluate the best approach. Once you have figured out the right choice for your business, you can register for the Edge Software & Digital Services Program to get started. Access new eguide on managed power services Managed power services are a ripe opportunity for existing and aspiring MSPs. In addressing an important need for customers, solution providers gain customer trust and loyalty, cementing the IT trusted advisor role. Learn more about the managed power services opportunity and how to add it to your business by accessing our new eguide, “The Essential Guide to Growing your Business with Managed Power Services.” This practical guide walks IT solution providers through an easy, step-by-step process on how to evaluate and add managed power services to their business.