As per the more common believe, monthly agreements are considered as the time-tested formula for a creative Managed Services contract. This is in line with the fact that a regular monthly contract would adhere to the recurring revenues. However, things can go other way round provided that you are not considerate of conditions clearly defining the manageable, work scope and deliverables.
Moreover, not incorporating the important business terms can also backfire on monthly contracts, making it a complete crap until and unless you have a well managed business strategy that can help you analyze business performance and put in the picture the necessary adjustments needed on the go.
Remember, the monthly contract you make for Managed Services include services and support for your devices and you never know when the quantity of devices might need to be changed. Moreover, as per the services side is concerned, you need to know what services you required precisely and what services are not included in the contract. So, when going for the Managed Services contract you should be well informed with the terms and conditions of contract to go with comprehensive knowledge about the services you required and devices that you want to connect in the contract.
Things to ponder for Managed Services Provider
As a Managed Service Provider, you need to provide you client with the complete menu of services and support included and not included in the contract. Moreover, a list of services offered on as-needed basis also needs to be mentioned, which might include installation of service and support on new machines, workstations or their removal. Make sure you inform your client that any new machine added to the system will be charged separately and that they need to extend the capacity of contract to incorporate new machines. Here it is well advised to all Managed Services providers to setup a system where they are automatically informed about the installation of new device to the system.
Draw Red Lines
Make sure you have your red lines as a Managed Services provider. This means that you should only offer your Managed Services and Support to systems with certain baseline configuration. You wouldn’t certainly want to offer support for an old desktop with too much breakdown issues. So, before you go into an agreement with your client, make sure you define your red lines well to your client.
Drafting a contract that sync with the needs and necessities of provider and clients is the best approach for a long term contract. Whether you are a Managed Service provider or client you need to be sure about service needed for a smooth sailing.