My Personal MSP Journey and a Guide for Atlassian Solution Partners

Head of Marketing & Partnerships at Revyz, Stu Lees, has navigated a long career in IT services, software and security.  In this article, he relates his experience of migrating his ITSM business to the managed services model.

Background - My Personal Managed Services Story

In 2004 owned an IT services business in New Zealand.  We provided all of the usual IT infrastructure services to our business clients in the Auckland region.

We went from a one person freelance operation to having a reasonable sized consulting team and focusing on Microsoft server, desktop and business applications such as Exchange, Sharepoint and SQL server.  

Our business was going great, until one day we realized that it was not growing anymore, the Cloud had arrived and all of a sudden, about 70% of what we did, was no longer needed. We watched as our main form of revenue - software and server deployment projects started slowing down and was replaced by smaller, cloud migration projects.  

For you Atlassian Solution Partners out there, this might start sounding a little familiar.

I think that we were fortunate enough to actually believe in the future of cloud and SaaS back then and so we leaned into it, whilst some of our competitors put their head in the sand.  But still, we struggled to see how we could stay the same company, in light of a big change to our workload.

'MSP To The Rescue'

Our savior to this potential disaster, was our shift to the MSP business model.  We heard about it from some of our software partners and it seemed great.  The idea of recurring revenue that was locked into multi-year agreements with customers no longer paying by the hour - they were instead paying by their user and server count was attractive.  

My problem was, we had no idea how to transition to it.

In typical entrepreneurial style, we just decided in the end to dive in.  The transition took us about a year and also created a massive upheaval in our company as our billing systems, resource tracking, client monitoring systems, customer reporting and ticketing systems all had to be adjusted.

The biggest change though, was in our mindset.

We as a team of ‘IT geeks’ had to shift our thinking from doing the work in exchange for money -  to doing more work up front, in exchange for consistent revenue coming in months later down the track. I’m not gonna lie, this was a difficult change because our habits and behaviors were deeply rooted in the ‘break fix’ timesheet mentality.

In my recent conversations with our partners around the world the concept of MSP has come up a lot in conversation so I thought that I'd write a little article to both share my experience, but also to provide a brief outline to some of you out there, who may be unsure about this whole 'MSP thing'.

So What Is MSP And Why Does It Matter to Atlassian Solution Partners?

The Managed Services Provider (MSP) approach is aimed at delivering consistent value to clients but also provides the MSP with predictable, scalable, and sustainable revenue streams.

What Is an IT Managed Services Provider (MSP)?

In simple terms, an IT Managed Services Provider is a third-party service that takes on the responsibility for managing and maintaining a client’s IT infrastructure, which could be networks, hardware, software, or cloud services. MSPs provide ongoing monitoring, support, and management services to ensure systems run smoothly, securely, and efficiently.

For Atlassian Solution Partners, this could mean providing comprehensive management of a client’s Jira, Confluence, or other Atlassian tools, ensuring that they are not just implemented correctly but are consistently optimized, secure, and compliant with relevant regulations.

Don’t get me wrong, there are already a bunch of highly successful solution partners around who are practicing the MSP model. However, there are also many who I have met who are focused entirely on cloud migrations and JSM implementations which is great, but this work will not be around forever.

Why an MSP Business Model Works for Solution Partners

Transitioning from traditional one-off project work to an MSP model brings numerous benefits for Atlassian Solution Partners:

1. Predictable Revenue Streams

   • Traditional consulting often means fluctuating revenue based on project demand. An MSP model, on the other hand, operates on a subscription or retainer basis, providing predictable, recurring revenue. This allows you to better forecast and scale your business over time.

2. Long-Term Client Relationships

   • Instead of one-off engagements, MSPs foster long-term relationships through ongoing management and support services. You’ll become a trusted advisor, embedding your team deeply into your client’s business. This not only increases customer satisfaction but also leads to higher client retention rates.

3. Proactive Problem-Solving

   • MSPs take a proactive approach by monitoring and managing clients’ environments in real time. This is especially important for Atlassian tools, where performance issues or downtime can cause significant disruption. By preventing issues before they arise, you position your business as a critical partner in maintaining the operational health of your clients' systems.

4. Scalability

   • As an MSP, you can scale your services across multiple clients more easily. Tools like automation, remote monitoring, and cloud infrastructure management allow you to serve multiple clients efficiently without a proportional increase in labor costs. This becomes especially valuable in managing Atlassian cloud instances.

5. Enhanced Client Value

   • By continuously managing and optimizing clients Atlassian ecosystem, you help your them extract more value from their software investment. This can include regular updates, performance tuning, data governance, and compliance with Atlassian’s evolving best practices.

MSPs and Atlassian: A Natural Fit in the Cloud-First World

Atlassian’s growing focus on cloud and SaaS (Software-as-a-Service) creates a natural alignment with the MSP model. As more organizations move away from on-premise infrastructure and toward cloud-based solutions, the need for ongoing management, optimization, and security only grows.

Here’s why MSPs are especially relevant in the Atlassian cloud context:

1. Cloud Complexity

   • While moving to the cloud reduces some infrastructure challenges, it also introduces complexities in configuration, integration, licensing and ongoing management. Clients need expert help to navigate these waters, especially as Atlassian cloud environments expand to accommodate remote workforces, compliance requirements, and scaling needs.

2. Compliance & Security

   • Cloud environments are subject to strict compliance regulations (such as GDPR, HIPAA, and SOC 2), and MSPs are well-positioned to ensure that clients remain compliant. Regular monitoring, audits, and updates to Atlassian environments are necessary to meet these standards. MSPs can provide peace of mind by managing this complex aspect of cloud services.

3. Customization & Automation

   • Clients increasingly require custom configurations and automations within their Atlassian tools to meet their specific business needs. As an MSP, you can offer customized services that optimize workflows, integrate tools, and automate processes—all of which provide tangible value to the client.

4. Seamless Updates & Migration

   • Atlassian regularly updates its cloud products, and managing these updates effectively is crucial for maintaining functionality and security. Solution Partners acting as MSPs can ensure that these updates are applied without disruption, as well as assist with migrations from on-premise to cloud systems.

5. Malware Protection and Data Backup

   • In cloud environments, where data is highly distributed, ensuring robust backup and malware protection is critical. As Atlassian Solution Partners, you can extend your MSP offering to include automated backup and recovery solutions for Jira, Confluence, and Bitbucket, giving clients confidence that their data is always protected.

How to Transition to an MSP Business Model

For Atlassian Solution Partners looking to move into managed services, the transition doesn’t have to be overwhelming. Here are a few steps to consider:

1. Define Your Core Managed Services

Start by defining what core services you’ll offer. For example, you could focus on Jira instance management, cloud security monitoring, compliance management, or performance optimization. Tailor your offering to the unique challenges your clients face within the Atlassian ecosystem.

2. Crunch Your Numbers

Take it from me as I’ve been there, moving your income streams from a time and materials model to a fixed monthly fee model can create ‘dips’ in your revenue and can have an impact on cashflow. Make sure that you spent a lot of time crunching your numbers with your head of finance so that you don’t have any scary financial surprises around the corner.

3. Implement Monitoring Tools

Leverage monitoring and automation tools to provide efficient, scalable services. This might include real-time monitoring of Jira performance or automated backup solutions for Confluence.

4. Train Your Team

Ensure that your team is up to date with Atlassian’s latest cloud features and best practices. MSPs must stay ahead of the curve, particularly in security, compliance, and optimization. I can't highly enough how important it is to educate each and every one of your team into what this change means for the company, what it means for them and their role and, critically - what it means for the customer.   You do not want to embark on this type of shift without having all of your team behind it.

5. Build Long-Term Contracts

MSP agreements are typically long-term, so structure your client contracts accordingly. Position yourself as a strategic partner with clear value propositions that go beyond implementation.

6.Migrate Existing Clients

Your existing clients know you and trust you so they are the first people to start talking to about your new approach. You’ll need to sell the concept to them.

7.Update Your Marketing

Your marketing message will need to be re-organized around the benefits of your MSP offerings. Lead generation activity will need to be centered around performing Cloud Assessments and promoting the benefits.

Final Thoughts

The shift to the cloud represents an enormous opportunity for Atlassian Solution Partners. By adopting an MSP business model, you can offer your clients ongoing, proactive management that reduces their operational headaches while ensuring they get the most out of their Atlassian tools. This model not only aligns with the growing complexity of cloud environments but also provides a stable, scalable revenue stream for your business.

As the Atlassian world moves further into the realm of SaaS, the role of MSPs will only grow in importance. Now is the time to position your business for long-term success in this evolving landscape.