3 min read

20% rule of vCIO pricing

By Denes Purnhauser on Jan 26, 2017

Here’s a mystery you all know all too well - pricing your stand-alone vCIO services so you’re not robbing your clients nor yourself...that trepidation when you’re putting together the proposal, or trying to ballpark a figure in a meeting. It’s always been a gamble. There’s a way to find the proper middle ground, following a simple process to help you to close more deals without risking a critical over or underestimation, of your client’s expectation or your services. Here is the formula...

We just call it a 20% rule....

Topics: vCIO MSP best practices MSP vCIO MSP Virtual CIO Pricing
4 min read

Trending Topics in the MSP 2.0 Peer groups

By Denes Purnhauser on Feb 19, 2016

A few months ago we started sessions of real peer groups, to get people together to discuss real issues, problems and challenges we’re all facing and hopefully to come up with some individual plans that boost the accountability of process execution. From these I’ve compiled a list of topics that are front-of-mind among participants. I can report that the discussions dealt with the problems in a very forward looking manner, with creative solutions and not stuck in status-quo thinking. In my opinion these sessions are giving a unique insight into where the industry is going.

Topics: vCIO IT management MSP vCIO MSP Virtual CIO CIO
2 min read

Teams vs individuals for IT management roles

By Denes Purnhauser on Feb 11, 2016

Baby boomers, Gen X, Millenials: the different generations in the workplace set some challenges for IT leaders and service providers as well. Who’s best suited for the vCIO role?

I came across an illuminating infographic in the last week that discusses the different strengths and weaknesses involved in these demographics.

Topics: vCIO IT management MSP vCIO MSP Virtual CIO CIO
3 min read

Quick calculation formula for vCIO opportunities

By Denes Purnhauser on Feb 5, 2016

The other day I made some calculation with a client about vCIO services. Fortunately it is very easy to calculate your opportunity in creating a profitable and scalable vCIO service offering.

We’ve simplified things for faster calculation, but it’s good to clearly understand what’s at stake. We see three categories in which we can lose or earn money.

Topics: vCIO MSP vCIO MSP Virtual CIO CIO
7 min read

The Fall of the Era of Free IT Advice

By Denes Purnhauser on Jan 21, 2016

Many IT managed services providers (MSPs) and internet telephony service providers (ITPs) are suffering the challenges of charging for IT consultation. The IT industry has taught its customers that we sell big expensive boxed packages that come with free consultation, placing the value in the big boxes and none in the advice. There are no big expensive boxes anymore, but still the advice remains free. However a systemic shift is taking shape finally reversing this conundrum. It is about offering low-cost SaaS applications and solutions with high-grade consultation fees, placing more value in the advice rather than the tool.

Topics: vCIO IT management MSP vCIO MSP Sales MSP Virtual CIO CIO consultative sales
15 min read

7 Requirements for a Scalable vCIO Offering

By Denes Purnhauser on Jan 11, 2016


The MSP 2.0 model is catching fire around the world. Many MSPs have already started to design, sell and deliver vCIO services. Adding $2.000 - $4000 of vCIO monthly recurring revenue (MRR) to a current 40 seat $5000 MSP MRR is now doable but requires some preparation. We’re going to take a look at the requirements (which can be easily overlooked) of the delivery to make sure we make it profitable.
All seven requirements center around a common set of principles: realizable expectations, efficiency in execution, excellent communication, and transparency.

Let's see the requirements one by one:

Topics: vCIO IT management MSP vCIO MSP Virtual CIO CIO
1 min read

Transform your MSP sales approach

By Denes Purnhauser on Dec 8, 2015


Branden Baker, President of Integration Technologies from Hawaii is a modern Tom Selleck. He shares a story about the transformation of his sales approach.

His team had not been able to close any MSP deals for more than a year. But he got involved in the vCIO conversation and after only a few weeks he landed his first monster six-figure deal.

Topics: vCIO Sales MSP vCIO MSP Sales MSP Business Building MSP Virtual CIO CIO
1 min read

MSP Financial Intelligence with Larry Cobrin

By Denes Purnhauser on Nov 27, 2015

Larry Cobrin, CEO/Founder of MSP CFO, has been working on a project to make financials available for IT managed services provider to make better decisions. In my first call with him I knew we needed him to talk about finances! I was fascinated by his insights about clients’ profitability trends, classifying them and taking actions for better profitability.

He shares a lot of hints and tips about different data you need to look into (which are mostly available already in your PSA) for your organization to make better decisions. If you feel you are leaving money on the table check out this interview!

Topics: MSP best practices IT management MSP vCIO MSP Business Building MSP
2 min read

MSP 2.0 Podcast

By Denes Purnhauser on Nov 27, 2015

We have been producing interviews with MSP Thought Leaders and with our clients for more than a year now. We started this as an ad-hoc practice to usher great MSP 2.0 insights into the community. People seem to be enjoying the free interview format without presentation, special offers and other sales tactics.

Now with over 16 interviews we’ve received a ton of feedback and the message we’re getting most often is to make the content available in a podcast format. Many people like listening to these inspiring talks during their commute, or just in the background.

So we have transferred all videos to a Podcast format and it’s available here.

Topics: vCIO MSP vCIO MSP Sales MSP Business Building MSP MSP Marketing
1 min read

Closing 11 Virtual CIO contracts in 3 weeks

By Denes Purnhauser on Nov 20, 2015

Greg Tanner from Denver is a maverick, no question about it. His “Technology Quarterback™” slogan has become a meme among the MSP 2.0 community. We spoke the other day and I am still speechless. He started crafting this vCIO offering back in June, piece by piece, and started selling it in early October. Since then he’s closed 11 virtual CIO contracts with over 20K MRR! In this video, Greg shares the secrets to these amazing results. Be aware, he has very strong opinions about MSP 2.0. (Even stronger than me - Haha!)

Topics: vCIO Sales MSP vCIO MSP Sales MSP Business Building MSP Virtual CIO CIO
9 min read

12 mistakes most MSPs make with their Virtual CIO services

By Denes Purnhauser on Nov 19, 2015

The Virtual CIO phenomenon is not new, yet the promises of the role have not been realized across the industry. Some mature MSPs who believe they have a functioning Virtual CIO practice, on closer inspection, still show challenges with delivery, scalability and profitability.

While we could go in depth to identify the root of these problems, instead here we'll highlight the twelve most common mistakes MSPs make with their vCIO. At the end of this article there is a questionnaire where you can measure yourself against other MSPs.

#update - We released this blog a year ago. This is an updated version covering the latest developments. It seems that the MSP 2.0 community was able to solve most of the issues during the last year. These mistakes now can be prevented. It has been a long year, for sure... :-)

Topics: vCIO Sales MSP best practices IT management MSP vCIO MSP Demand Generation Virtual CIO CIO consultative sales
3 min read

10 ways MSPs are leaving money on the table

By Denes Purnhauser on Oct 15, 2015


Keeping up the margins for IT managed services providers is getting harder and harder. The competition is catching up and while needs of the clients keeps growing, the price still seems to be dropping - and many IT companies are making a practice of leaving money on the table. Let's look at 10 things you can fix to prevent losing money every day.

Topics: vCIO Sales MSP best practices MSP vCIO MSP Virtual CIO CIO consultative sales
1 min read

Increase revenue with process related Virtual CIO services

By Denes Purnhauser on Oct 8, 2015

Ryan Williams is a superstar CEO of the ProcessPlan SaaS application. He really knows the MSP arena well, as he is also VP of Business Development for the MSP Nexxtep

I was intrigued to have an interview with him because of my belief that IT companies are specialists in process. Clients need process management experts, but that’s usually seen as a management role, and not a tech discipline. Ryan has changed this with his tool: ProcessPlan is awesome software that can be used for planning and managing processes. It makes the process problems tech problems, so the IT managed services providers can leverage them to sell process related Virtual CIO services to their clients.

Topics: vCIO MSP best practices IT management MSP vCIO MSP Virtual CIO CIO
1 min read

Implementation of the Virtual CIO Services with Rich Anderson

By Denes Purnhauser on Sep 17, 2015


Implementing vCIO services can be a challenge. New ways of thinking, new lines of services, pricing and packaging, and service delivery all abound. Rich Anderson, CEO of Imagine IT has been working on this for a couple of months now. I asked him about his experiences, challenges, solutions and results. If you are thinking on implementing Virtual CIO services, or if you have been working on that already, let’s pick his brain. He’ a smart guy and explains everything very clearly with tons of hints and tips. Enjoy!

Topics: vCIO IT management MSP vCIO MSP Virtual CIO CIO
6 min read

Starting vCIO projects the right way

By Denes Purnhauser on Sep 11, 2015

Many IT managed services providers see opportunities with their clients that aren’t related to the existing infrastructure. Clients are instead looking for help deciding which CRM they should use; how they should migrate their many Excel spreadsheets to a Process Management application or with something else that needs IT management expertise. You want to help them, of course; you are the trusted advisor, even a dedicated vCIO. The main question is: how do you start a project AND start charging for your project management duties from day one?

Topics: vCIO IT management MSP vCIO MSP Virtual CIO CIO
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