The ever-evolving landscape of technology and cybersecurity presents a unique challenge-and-opportunity matrix for Managed Service Providers (MSPs). The integration of advisory services such as Virtual Chief Information Officer (VCIO) and Virtual Chief Information Security Officer (VCISO) into service portfolios promises not only to enhance client value but also to generate monthly recurring revenue (MRR). This strategy aims to push the boundaries of traditional Quarterly Business Reviews (QBRs) into continuous, strategically aligned partnerships.
Key Takeaways
Expanded Service Offering: MSPs can transition from periodic QBRs to continuous VCIO/VCISO services to become more integrated with client executive teams and drive business innovation.
Revenue Growth Potential: Adopting the fractional VCIO and VCISO model can lead to new MRR opportunities and convert one-time projects into ongoing engagements.
Advisory Services as a Differentiator: Providing high-value advisory services positions MSPs as essential strategic partners, helping clients navigate complex cyber threats and compliance challenges.
The Shift from TBR/QBR to VCIO/VCISO Services
The advisory opportunity in the tech industry is ripe for MSPs seeking to differentiate themselves beyond the occasional tech-support engagement. VCIO and VCISO roles represent a paradigm shift—from episodic touchpoints in TBR/QBR routines to a consistent presence offering strategic guidance.
Strategic Integration and Advisory Opportunities
Brian Doyle, co-founder of VCIO Toolbox, emphasizes the critical role of VCIOs: “We want to become part of their executive team. We need to have a 360 view of the organization…understanding not only what is the technology doing, but what is the business trying to achieve and where does technology intersect.”
This approach fosters strategic integration with client businesses, identifying opportunities for innovation that align with business objectives. Such involvement fortifies trust and transforms the MSP into a linchpin in the client’s decision-making process.
Leadership and Continuous Engagement
A well-executed VCIO or VCSO role immerses the service provider in ongoing leadership tasks, including strategic planning, policy formation, and alignment between technology and business objectives. Continuous engagement with different departments and understanding their challenges and opportunities positions MSPs as integral to the organization’s growth.
By taking an active role in these domains, MSPs can stitch advisory services into the very fabric of their clients’ operational strategies, ensuring tech solutions are proactive rather than reactive. Doyle notes: “VCIO and VCISO services are continuous service models…you’re working on ongoing improvement-based services and ensuring you stay engaged throughout the year with the customer.”
Building Sustainable MRR through Advisory Models
Moving to these advisory roles can pivot a tech business from periodic revenue patterns to steady, predictable MRR—a transformation with clear scalability benefits. Doyle outlines scaling strategies, including tiered services ranging from remote based to full-service advisory programs.
Flexible Service Tiers and ROI
The flexibility in service tiers caters to various client sizes, budgets, and needs, paving the way for MSPs to offer services tailored to specific requirements, such as weekly IT staff calls, vendor performance reviews, regular attendance at leadership meetings, and comprehensive security training programs.
MSPs can adjust their offerings to the scale and complexity of the business they service, targeting both the high-touch involvement for smaller clients and the broader, strategic input required by larger, more complex organizations.
The Business Case for Cybersecurity Oversight
Offering VCISO services has become increasingly valuable as small and medium businesses face complex cybersecurity threats that were traditionally only the problem of bigger enterprises. Doyle asserts, “Small to mid-sized companies…are seeing the same cyber threats as large enterprise corporations.” With increasing regulatory pressures and liability concerns, businesses seek experts who can navigate this landscape—a demand that MSPs can fulfill.
From ensuring adherence to compliance requirements and managing audit support to conducting policy reviews and identifying security gaps, MSPs who enhance their repertoire with VCISO expertise can safeguard their clients and solidify an ongoing revenue stream.
Pricing Structures and Advisory Service Packaging
Determining the right pricing for fractional VCIO and VCISO services can be a balancing act. The rates vary by region and service complexity. This suggests the need for MSPs to be attuned to competitive pricing trends and client-perceived value, structuring their offerings to align with the level of expertise and involvement provided.
Driving Business Innovation and Security in the Modern Era
As businesses increasingly seek tech partners capable of guiding them through the challenges of the modern digital landscape, MSPs can ascend beyond the role of service providers to that of valued business partners. The pivot to VCIO and VCISO services offers a strategic pathway for tech businesses to embed themselves within the fabric of their client’s operations, driving innovation and security and unlocking the full potential of MRR.
These roles provide more than just IT support—they offer leadership, strategic insight, and a partnership woven into the client organization’s strategic objectives. By adopting these models, MSPs can position themselves as integral players, not just in maintaining their client’s technological landscape but in shaping the direction of their growth and success in an increasingly complex and competitive business environment.
