2 thoughts on “It’s Time to Re-Think Multi-Year Managed Services Agreements”

  1. What I am dong with my long-term clients is writing a 3-year contract with a 45-day out cancellation. No one has exercised it yet. I guess I have been thinking it gives me the 3-years and gives the client the satisfaction of knowing that they can get out of the contract. To be fair, I have offered this only to long-term clients and one that was new but on the fence. Knowing he could get out of the contract made the closing process much faster.

  2. Charles,
    Thank you for raising this important facet in how MSPs get valued as a business. The length of contracts between a customer and their MSP is also partially driven by the length of the agreement between the MSP and their underlying suppliers. Also, let us remember that it is customary to extend lower pricing to longer terms.
    Another factor driving MSP value (maybe a separate post), is whether the MSP is merely a ‘broker’ of the cloud service (actually delivered by someone else, and easily switched to another broker) or the actual service provider themselves and thus of higher value.

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