MSPs in the United States are facing reduced seat count and lower recurring revenue due to the increased efforts to prevent the spread of the deadly coronavirus pandemic.

While some MSPs stated that they count on the regular monthly cash boost to get them through the next few weeks, others claimed the lean times were here already.

Richard Delaney (CTO) of Mahwah-based Delaney Computer Services, stated that there are many reductions in contracts currently being haggled. This solution provider is also available to New York City, which has been hard hit by the coronavirus. “I have been in touch with my clients. Are there any losses? No. Is there going to be? It’s only going to be a few thousand dollars per month in recurring income that will evaporate.”

Delaney stated that he was taught early in life not to concentrate on one industry. He has, therefore, much like a fund manager and prepared for bad times by diversifying his customer portfolio. Delaney stated that an MSP with whom he has been in frequent contact lost 400 seats during the weekend. He believes some reductions are inevitable.

“We tend to concentrate on the insurance and finance sector. He said that insurance is good right now. “The law offices aren’t. “The law offices are still open, even though the courts have closed. Some of my clients are restaurant owners. They will be devastated.

Mark Essayian, president and CEO of KME Systems Inc. in Lake Forest, Calif., has said that two of his clients have reduced their seat count. He stated that the key to his business’ success has been reaching out and initiating conversations with companies he thinks could have problems.

“We have two clients that only do outdoor party events. We reached out to both of the owners. We called both owners and said, “Look, let’s get down and work out what we’re going do,” he explained to CRN. These are small businesses. It’s a mixed bag. We are just being honest. We want to know how your business is doing. We can help. Are all your employees still working? If so, we’ll reduce the number of their seats.

One customer usually has 10 employees. However, only six of them are currently working because of the virus. This made it easy to cut the cost by four seats. He said that businesses should be prepared to face deeper cuts as the pandemic progresses.

He said that he had a CFO and suggested that we plan for a 20% reduction in our contracts. You can’t plan if you don’t plan. Southern California has a strong economy but is still in decline, just like the rest.

MNJ Technologies’ executive vice president Ben Niernberg said that there are concerns about cash flow as customers pay more slowly and money goes out.

He said, “We are really monitoring cash flow very closely.” “I received an email from an account regarding the need to stop payment on a certain item. Although it was a small amount, we are beginning to see some improvements. It will depend on the service provider you use.

MNJ Technologies, he said, sells edge-based solutions rather than desktop management tools. This gives MNJ Technologies some protection from the ebbs of the larger economy but provides few guidelines for dealing with the potential pandemic.

He said, “I think we don’t know the answer.” We don’t know how much time this will last. We don’t know the future. Right now, we are planning for contingency in case of a recession. We are developing sales strategies and marketing strategies around “What do you do?” and “How do you do it?” And how can we grow? How can we support our employees in the future? These are real conversations companies have, and they can be scary at times.

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