Navigating Standardization vs. Customization with Ryan Morris & Luis Giraldo

Business of Tech: Daily 10-Minute IT Services Insights

In this episode of the Business of Tech Lounge, host Dave Sobel engages in a thought-provoking discussion with Ryan Morris of Morris Management Partners and Luis Giraldo, Chief Experience Officer at ScalePad. The conversation centers around the provocative question: Does standardization equal commoditization? As the IT channel evolves, many Managed Service Providers (MSPs) are grappling with the challenge of balancing technology stack and process standardization while striving to maintain strategic differentiation in a competitive market.

Luis highlights the growing concern among MSPs, particularly those with significant revenue, who are experiencing downward pricing pressure as clients perceive similar offerings from multiple providers. He emphasizes that while standardization can streamline operations, an over-reliance on it can lead to a lack of strategic conversations with clients. This disconnect often results in MSPs being viewed as interchangeable, leading to commoditization and a struggle to demonstrate unique value. The discussion underscores the importance of understanding clients' businesses and fostering deeper relationships to escape this commoditization trap.

Ryan adds to the conversation by questioning the motivations behind standardization. He argues that while it can simplify operations for MSPs, it often fails to deliver value to customers if not aligned with their needs. He points out that the industry is still young, with ample opportunities for growth, and that competing solely on price is a self-inflicted wound. Instead, he advocates for a focus on customer outcomes and the importance of customizing engagements based on industry-specific needs, rather than forcing clients into a one-size-fits-all approach.

As the episode wraps up, both guests agree on the necessity of evolving the conversation around service delivery. They suggest that MSPs should not only standardize their internal processes but also adapt their client-facing strategies to emphasize understanding and addressing specific business challenges. By doing so, MSPs can create a more engaging and valuable experience for their clients, ultimately leading to differentiation in a crowded marketplace. The episode serves as a call to action for MSPs to rethink their approach to standardization and commoditization, encouraging them to prioritize strategic relationships and tailored solutions.

All our Sponsors: https://businessof.tech/sponsors/

Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/

Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/

Support the show on Patreon: https://patreon.com/mspradio/

Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech

Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com

Follow us on:

LinkedIn: https://www.linkedin.com/company/28908079/

YouTube: https://youtube.com/mspradio/

Facebook: https://www.facebook.com/mspradionews/

Instagram: https://www.instagram.com/mspradio/

TikTok: https://www.tiktok.com/@businessoftech

Bluesky: https://bsky.app/profile/businessoftech.bsky.social