Introduction

I see it time and again.

One of the major challenges for Managed Service Provider (MSP) cyber programs is delivering top-tier security tooling to their clients, yet struggling to make the margins they want.

Worse, they can’t quite seem to place their finger on why.

A common thread in these situations is the absence of a structured vCISO (Virtual Chief Information Security Officer) offering. Without a vCISO service, you’re essentially giving away your team’s invaluable expertise for free, impacting your margins and overall profitability. Here’s a deep dive into why not offering vCISO services is costing your MSP money and how you can turn the trend around.

1. Lost Revenue

Every time your team answers a security-related question or provides strategic advice without charging for it, you’re losing potential revenue. These interactions, while important for client satisfaction, add up significantly over time. By offering a structured vCISO service, you can monetize these consultations and ensure that your team’s expertise is recognized and compensated.

• Example: Consider a scenario where your team spends 10 hours a month answering client questions about security strategies. If you charged for this time as part of a vCISO service, even at a modest rate, it would directly boost your revenue.
  
  

2. Client Perception

If you undervalue your strategic input by not charging for it, your clients may also perceive it as less valuable. Offering a vCISO service helps establish the importance of strategic cybersecurity planning and positions your MSP as a vital partner in your clients’ security posture.

• Insight: Clients often equate cost with value. By providing free strategic advice, you inadvertently suggest that it isn’t worth much, which can undermine your credibility and the perceived importance of your services.
  
  

3. Market Positioning

As an MSP, positioning yourself as a visionary partner is crucial. A vCISO service reinforces your role as a strategic advisor, not just a service provider. This distinction can set you apart from competitors who only focus on technical support.

• Strategy: Use your vCISO service to highlight your ability to foresee and mitigate risks, thereby positioning your MSP as a forward-thinking leader in the cybersecurity space.
  
  

4. Future Negotiations

Starting client relationships without a clear vCISO offer can place you at a disadvantage in future negotiations. If clients become accustomed to receiving strategic advice for free, it becomes difficult to introduce charges later.

• Tip: Establish clear boundaries and value propositions from the outset. Ensure clients understand that strategic cybersecurity planning is a premium service that requires additional investment.
  
  

5. Eroding Differentiation

Without a distinct vCISO offering, your MSP risks blending into the crowd of generic service providers. Differentiation is key to standing out in a competitive market, and a vCISO service can provide that edge.

• Action: Develop a unique vCISO program that highlights your MSP’s strengths and expertise, making it clear why clients should choose your services over others.

6. Upsell Opportunities

A structured vCISO service provides a platform to discuss business risks and security strategies comprehensively. This approach opens up opportunities for upselling additional services and solutions.

• Opportunity: Use the vCISO role to identify and recommend further security enhancements, demonstrating the ethical basis for these recommendations. This not only increases sales but also strengthens client trust and satisfaction.

Conclusion

Not offering vCISO is a missed opportunity to enhance your MSP’s profitability and client relationships. It’s not just about adding another service; it’s about claiming your rightful place as your client’s trusted cyber advisor.

• The Bottom Line: Implementing a scalable vCISO service can transform how your MSP is perceived, improve your market position, and significantly boost your margins.

Ready to unlock the full potential of your MSP’s cyber services?

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