Managed Service Providers (MSPs) are the candy that will make your company Fat. Giving a giant I.T. company the key to Cyber Security and dealerships' future uses fear and a dealer owner's technical knowledge. Your I.T. guy in your store will agree that their service is faster, safer, and less expensive. The only caveat with having an I.T. guy is that you have been told you can only have one. DealerNerd tells you this is backward thinking that starts a spending spree.
A couple of decades ago, there were no computers, I.T. guys, or BDCs, and Leasing was done using paper strips on the wall. One copier and a DMS system run on 508MTs using an RS232 Network, and your I.T. staff provides your DMS. No I.T. guy existed. Everyone knew the technology and how to run it. What happened? MSPs started taking advantage of this mishap of technical knowledge. They would encourage hiring an entry-level I.T. guy or sell staff instead of training customer-facing employees and managers. Computer Companies created a poor role (slow response to emergencies and daily issues) that does not serve the customers or dealerships. Your I.T. guy has been your trusted friend and created an environment of instant gratification. Now Computer Companies are after their salaries.
DealerNerd challenges the assessment of the Death of the IT Guy and challenges to explain how Dealer MSPs were able to charge so much. It's because the MSPs are open-chair chasers. They charge twice as much because dealerships are desperate when an I.T. person leaves. MSPs now have market share and can push dealerships, good I.T. Managers, Directors, and CTOs around. It takes an average of three days for MSPs to find a local Field Engineer (untrained in Dealerships or your Dealership) to be the hands, ears, eyes, and sometimes nose. It's becoming the most technical/financial scam in Dealer History. "It's not a part of your subscription" happens more than you think. I get calls daily.
The Dealership specific MSPs do not best serve your "auto and heavy truck dealers with outsourced monitoring and management of a dealership's entire I.T. environment." You do, just like you secure your front door, back door, factory statement, and employees. If something happens, the MSP will not be responsible for the hack; they will tell you which employee to fire. They will also take advantage of your fear by selling you a larger package. You had EDR, but the new XDR is far better.
There is a much better way and trend wise the fortune 500 companies are doing. Don't be last year's profit pig. TEACH YOUR EMPLOYEES TO BE I.T. MASTERS.
Interest in Dealership MSPs is unfounded; a dozen computer companies in your area are ready to install Antivirus on each computer and ask you to send them your support tickets. You can do this all in-house as we have for centuries. Crime isn't a new problem, just a new doorway. Why are businesses flocking to MSPs? They are pumping you full of fear.
MSPs are old school, just like coffee machine service. The coffee vendor will sell you the percolator, the pot, the supply, and the expertise. Come on; it's just coffee. Suppose your employees are taught how the machine is maintained. Cross-training sales staff, service staff, and parts advisors could cure your monthly coffee service fee. With the invention of Amazon, you can source your machine, filters, coffee grounds, and cups for far less.
Remember when you started paying Google for Adwords and couldn't get off the service? It cost hundreds of thousands of dollars. MSPs are the same; it's an unhealthy addiction. The only cure is to train your staff. Be the regulation champions, know what your computer is doing, and become a Dealership that protects customer data and does not outsource it.
To achieve top efficiency. Train your staff. "You can do it." You have a professional company (DealerNerd) that can increase your technical employee competency and help you reach all your goals for 2023. While reducing computer support costs. Finding a path to Co-Managed with the purpose of self-managed works for FloorPlan, why not Computers? Put this way, you spend thousands on training the sales and service staff. It's time you caught up with the rest of your Dealership.