Technology is changing fast, and MSPs are at the center of it all, juggling more vendor partnerships than ever. But managing these relationships isn’t just a nice-to-have—it’s a must. If you want to keep your business running smoothly and your clients happy, it’s time to master the art of vendor management.
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Everyone’s tech stack is getting deep, according to Matt Solomon, co-founder and chief business development officer for Channel Program, a vendor discovery and management platform. The company has found that 28% of an MSP’s tech stack is now made up of cybersecurity products as MSPs expand their offerings in areas like cloud backup, email security, multi-factor authentication, endpoint detection and response, firewalls, and more.
With expanding cyber requirements and continual upgrades to table stakes software, picking the right vendors becomes crucial. But how do you make the right choice among so many options? That’s where smart vendor management comes in.
Evaluating Vendors: Know What You Need
Before you dive into the vendor selection process, it’s essential to know what you’re looking for. Solomon suggests a few things to keep in mind:
- Integration with your existing tools: Make sure the vendor’s products work well with what you’re already using.
- Compliance and security standards: Vendors need to meet the same high standards you hold for your own business.
- Support: Find out how much help you’ll get from the vendor. Are they just looking to make a sale, or are they genuinely interested in your success?
- Contract flexibility: Think ahead. As your business grows, will the contract terms still work for you?
Make sure to ask questions that go deeper than what you might find in marketing materials or receive in a sales pitch. “If they’re cyber, I’m going to ask for their SLA (service level agreement). If they’re SOC (security operations center) required, I'm going to ask for that paperwork. I’m going to ask if they’re acquired or organic,” Solomon said.
Keep Doing Your Research
Once you know what you need, it’s time to dig in and research your options. Don’t just take one person’s word for it; look at multiple sources. MSP peer groups and forums like Reddit are great places to hear from others who’ve been in your shoes.
Solomon also stressed the importance of keeping an eye on new players in the market. He said offerings that didn’t even exist when he worked for a previous company seven years ago now are among the top 10 technologies MSPs are buying today. Keeping an eye on new market entrants is crucial for staying ahead of the technology.
Build Real Relationships with Vendors
Selecting the right vendors is just the beginning. Then comes the work of building a strong, lasting partnership. Whether you’re meeting vendors at events or chatting with them online, take the time to get to know their team and how they operate. These relationships can make all the difference in the long run.
“As much as people don’t want to tell you they have customers that they like more or treat differently, people you have relationships with, you just respond quicker,” Solemn said. “There are advantages to having that one-to-one relationship. Sometimes these relationships develop over years.”
And don’t just foster relationships with the salespeople—connect with marketing and other teams too. The more people you know at the vendor’s company, the easier it will be to get the help and resources you need.
Know Your Contracts Inside and Out
Finally, don’t sign on the dotted line until you fully understand your contract—and the trajectory of your own business. Ask all the important questions upfront so there are no surprises later. Think about how the contract terms will affect your business as it grows over the next few years. You need flexibility to adapt as your business changes.
“What you’re signing up for today might not be what you need a few years down the road,” Solomon said. “Make sure the contract terms are clear and that they offer the flexibility you’ll need as your business evolves.”
In reality, mastering vendor partnerships isn’t just about saving money or making sure everything runs smoothly. It’s about setting your MSP up for long-term success. By knowing what you need, doing your research, building strong relationships and understanding your contracts, you’ll be well on your way to turning vendor management into a strategic advantage. In a crowded market, these partnerships can help you stand out, deliver better results for your clients and grow your business.
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