BitTitan says 90 per cent of MSPs today are underwater similar to an iceberg

Published: July 12th, 2016

TORONTO – As the industry deals with business transformation, BitTitan is too making its own disruptive moves in the managed services provider (MSP) marketplace.

Company founder and CEO Geeman Yip told CDN at the Microsoft Worldwide Partner conference that his goal is to transform MSP who are technical into more of a sales and service company.

Geeman Yip, founder and CEO of BitTitan
Geeman Yip, founder and CEO of BitTitan

“Our plan is to help create a centrally MSP in a box service. MSPs today are too technical and are good at doing one workload. BitTitan wants to help them taken on more workloads because if they don’t they are not going to survive,” Yip said.

He added that the trend is for workloads to become more commoditized over time.

With that BitTitan is now offering a Managed Services Automation platform that automates onboard services and creates intelligent upsell opportunities within existing customer bases.

But Yip said that MSPs need to change their approach with customers. He said that if an MSP has five transactions in front of him or her they would tend to prioritize towards the biggest dollar opportunity. Yip said what they should do is focus more on the easiest transaction first.

BitTitan is pioneering the development of the “Modern MSP”. Yip describes the Modern MSP as a company that is interested in recurring revenue streams and building relationships. “Recurring revenue means you have a customer who likes your lifetime value instead of your per project value.”

Yip sees the MSP marketplace today in a serious state. “It’s an iceberg and more than 90 per cent of MSPs are right now underwater. In the next three years they might be at the bottom of the ocean,” he said.

BitTitan’s Managed Services Automation platform features a one click delivery service console. The company currently has 12 managed services right out of the box but Yip is pushing to deliver 100 by the end of the year.

What the new funding means

CDN recently reported that BitTitan got $15 million in Series A financing. Yip said that while the company has been self-funded it could only grow organically at around 100 per cent per year. This new cash infusion gives BitTitan the potential to grow at 400 per cent. This means more people resources to drive the company’s five-year road map.

“In the next six to 12 months you are really going to see BitTitan grow so strap yourself in,” he added.

The company is nearing the end of a large construction project that will see its Kirkland, Wash.-based headquarters expand by four times its current size.

BitTitan has also partnered with DropBox for compliance-based storage.