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5 min read

Is Verticalization the Key to MSP Growth?

There is a lot of noise surrounding MSP verticalization.   

Some helpful, and some... not so helpful.  

Some sources say that to grow your business successfully, you need to specialize in a specific vertical.   

While others argue that being an MSP who can help any client—regardless of their industry—is the key to growth.  

With so many opinions flooding Reddit and the rest of the internet, it can be hard to determine which strategy will actually help you grow and scale your business in the way that you want to.   

And while we are not going to tell you what you should and shouldn't do, or if you should specialize or not, we do want to help cut through some of the noise and help you figure out if verticalization is right for your MSP. 

So, let's get to it. 


What is MSP Verticalization?  

MSP verticalization is when MSPs focus on supporting customers in a particular industry, such as manufacturing, health care, insurance, medical, and so on.   

It's a great way for MSPs to specialize in niche markets and tailor services and solutions to better match their clients' business needs.    

Verticalization enables MSPs to be more targeted in their approach and more efficient in their delivery. Allowing them to streamline business operations and increase customer satisfaction while focusing on areas that will help them grow and scale.  

Over time, as MSPs specialize and become experts in their chosen field, they gain a competitive edge. This expertise enables them to differentiate themselves effectively, standing out in a highly competitive market.  

However, verticalization is not for everyone, and there is certainly no one-size-fits-all approach.   

So, it's important to do your research before deciding what's right for you.   

To help get you started, we have compiled a list of pros and cons. And if you want to know how CloudRadial can help support your business venture, we can help you with that, too! 




You'll experience an increase in efficiency.

Efficiency is key for any MSP.  

And verticalization can help you achieve it.  

When you focus on a specific industry, you gain a deeper understanding of your client's business needs.  

This information enables you to build processes and implement solutions addressing their unique pain points.  

Not only help you deliver more efficient and proactive customer services, but it will also enable you to streamline operations while providing more value to your clients. 

And if you're looking for a solution that will support your efforts, then CloudRadial's Unified Client Portal has you covered.  

With all your clients' needs consolidated into one interface, you can automate processes, reduce manual labor, and make operations more efficient. 

Sounds too good to be true? Book a demo and see for yourself... 


You'll have a competitive edge.  

We are by no means saying that you need to focus on a specific vertical to remain competitive, but we are saying that it contributes to your competitive edge.  

And this is largely because you can market yourself strategically and differentiate yourself clearly from other MSPs.  

This can help you win more business, attract top talent (like those techs you've been after), and establish yourself as a leader in your field. 

Positioning your MSP as a niche specialist will help you build strategic relationships with your customers and enable you to understand their language, making it easier to identify your unique selling points and differentiate your MSP among competitors within the same verticals. 

What's more, most clients who operate in specialized industries are willing to pay a premium for expert advice and services that have been tailored to their needs. So not only will you win more business, but you'll make more profit too! 


You can create a standardized tech stack 

Verticalization enables MSPs to identify specific tools, software, and hardware that supports their clients' unique needs. 

This helps them create a standardized tech stack that can be deployed to all the customers who operate in the same vertical.  

Which according to ConnectWise, enables better service quality, scalability, and profitability.  

But the benefits don't stop there. A standardized tech stack helps MSPs to:  

  • Provide reliable and proven tech solutions that work well together. 
  • Deliver consistent, high-quality services to their clients while reducing the risk of errors and downtime.  
  • Narrow their technology standards and reduce their technology overheads by only investing in the tools they need. 
  • And provide better customer experiences and drive more sales for their products.  

If you're looking for tools and solutions to help you standardize your tech stack, you'll want to check out CloudRadial's Service Catalog.  

Built specifically so MSPs can showcase their solutions, the Service Catalog enables MSPs to develop and deploy standardized tech stacks that can be easily replicated across multiple clients, ensuring consistent service delivery. We'd love to show you the benefits in real-time! 



Despite verticalization creating many positive outcomes for MSPs, there are always a few disadvantages, such as: 


If you're looking to grow, you'll limit your market  

If you're new to the channel and striving to expand your client base, verticalization might not be the right strategy for you. 

Yes, verticalization will help you stand out, but it won't help you diversify your clients and expand into other areas, which is something you'll want to do when starting out.  

Instead, focus on casting a wider net and working with diverse clients. You'll attract more business and gain valuable experience that will benefit you in the long run.  

As you grow and scale and become more established, you might want to revisit verticalization, knowing you are much more well-equipped with the knowledge, tools, and client base you need to succeed. 


You'll have high competition. 

But don't let that put you off. A little competition never hurt anyone.  

For years, MSPs have adopted a vertical approach, and some will have an established client base in the vertical you're looking to target.    

Not only will this make it harder for you to win new business and build connections, but if you're targeting clients who already have an MSP, it could also damage your reputation.  

And, for MSPs, reputation is everything.   

Instead, focus on refining your Unique Selling Propositions (USPs) and positioning yourself as a trustworthy MSP so that new clients will be attracted to your business.  

CloudRadial's Unified Client Portal can help you achieve this.  

Our unique client-facing portal enables you to be completely transparent with your clients by providing them real-time data, performance metrics, and clear insights. And it’s white-labeled to your business, so it looks like your portal. 

This accessibility to information enhances their trust in your services and gives them a better understanding of your work and how it benefits their business. Both of which will strengthen your partnerships.  

And if you’re thinking to yourself, “But I already have a portal!”, we ask you this: is it actually a good client portal? Is it a Unified Client Portal? There is a difference between the two, and we get into it here. 


Your overheads might increase  

Sorry, but we had to mention it.  

While verticalization has its perks, it also has a few financial strings attached.  

And although most MSPs strive to keep outgoing costs low, when it comes to catering for specific verticals, you'll find you spend more money on things like: 

  • Training and education  
  • Hiring staff with specialized backgrounds 
  • Creating customized infrastructure  
  • Compliance and regulations  

That doesn’t have to be as daunting as it sounds.  

Because when you use a solution like CloudRadial, everything you need is consolidated in our customizable Unified Client Portal, saving money and resources.  

With a Service Catalog that allows you to present your solutions to clients and a vCIO Planner that enables you to create tailored IT roadmaps, you can demonstrate to your clients how you will meet their specific industry requirements.  

What's more, our client-facing compliance tools offer assessments, training, policy reporting, and more, which means you and your clients can stay ahead of the game and ensure you're meeting industry standards.  

We know that when it comes to being an MSP, there really is no one-size-fits-all approach. And what works for you might not work for someone else.  

However, we do know that CloudRadial works for every MSP. And whether you choose to verticalize or not, we can help you grow and scale your MSP.  So, let's kickstart your journey today.

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