Technology is changing at a lightning fast pace daily.  It has been said that the applications that we will be using three years from now haven’t even been created yet. Today's businesses are looking to be flexible and agile while increasing productivity and giving their employees the work / life balance to ensure that they keep employees happy and productive.

It was just a few years ago when three-year Internet service provider (ISP) contracts were the normal. If you wanted Internet and dial-tone you would sign a three-year contract.  If you wanted a one-year contract it was cost 2x the price of the three-year contract.  Today with all the consolidation in the industry and competition growing,  month to month agreements are now the normal.

The same is true with Managed Service Providers (MSP).  Most are still looking for three-year binding contracts. This means that if you are unhappy you must wait three years or pay out the balance of the agreement to get a new service provider. In most cases it doesn’t make sense to lock into a three-year agreement with a service provider, especially if you are not sure that the provider will be able to deliver throughout the contract as your business grows and changes. Even if the MSP has good intentions, there is a high level of risk introduced as both companies change.  Being locked into an agreement where the service provide cannot meet expectations is a risky proposition.

To reduce the risk, ensure agreements have an escape clause for purpose so that if the provider is not meeting or exceeding your expectations or is unable to adapt to the changes in your company you are not stuck in a long-term agreement.  Sometimes it makes sense to commit to a long term agreement for some specific strategy, however, often it is more beneficial for the company asking for the commitment than it is to the company signing the long term binding agreement.

Network Essentials has one year agreements with a thirty-day out clause for any reason. We don't give you 60 days to cancel our service and then lock you into a three-year contract. We believe that if we are not meeting or exceeding our clients expectations at anytime, they should be able to leave without a penalty.  Another reason why Network Essentials is a different Managed Service Provider in Charlotte, North Carolina.

Kyle Elworthy 3/27/19