How to Know If Your MSP is Ready for Network Monitoring Tools

Network monitoring is a cornerstone of running a profitable MSP. If you don’t have network visibility, you’re constantly on the back foot and reacting to client complaints. That’s why MSPs of all sizes typically implement some level of network monitoring. However, what a good set of network monitoring tools looks like for one organization won’t necessarily work for another. 

That’s because network monitoring for MSPs is typically a maturity question, not a capability question. Operational Maturity Levels (OMLs) provide MSPs with a solid reference for gauging maturity and can be used to infer which tooling is pragmatic at a given level. Mapping your tooling investment to your maturity level can help you scale without being wasteful and focus your energy on the next most important bottleneck as you grow.

In this article, we’ll dive into OMLs, how they relate to network monitoring, and whether or not additional investment in network monitoring makes sense at a given OML stage. 

What is an operational maturity level (OML) and how do they help MSPs determine network monitoring readiness?

The Service Leadership Index MSP OML model is like Carnegie Mellon’s popular Capability Maturity Model (CMM) for managed service providers. It is a self-assessment framework that allows MSPS to categorize themselves into one of five maturity levels based on their Predominant Business Model (PBM). The OML model starts with a highly reactive break-fix approach at level one and builds to a partnership-focused high-performance level five. 

While MSPs at each level can, and typically do, use some form of network monitoring, what the implementations and use look like in practice tend to vary widely across the different OML levels. Of course, as the MSP OML framework is a model, the common refrain of statisticians that “all models are wrong, but some are useful” applies here. OMLs provide a useful proxy for assessing network monitoring readiness, but nuances will vary by industry, capabilities, and business model. 

With that in mind, let’s jump into looking at how the MSP OML levels are defined. 

How the five OML levels are defined

Each of the five MSP OML levels are associated with 30-39 distinct traits depending on the MSP’s business model. The traits are spread across six functional areas: strategy, sales, service, financial, compensation, and security & compliance, which are essential to MSP health and maturity. 

1. OML 1: Beginning

MSPs operating at OML level 1 typically take a reactive approach to service delivery and primarily solve “break-fix” problems for their clients. An MSP at this level often has low or negative financial performance and few, if any, standardized processes for time tracking, project management, human resources, and customer support. Similarly, an MSP at this level is expected to have relatively immature pricing strategies. 

In practice, an MSP operating at OML level 1 might look like a business owner still handling most service calls themselves, primarily operating out of spreadsheets, and implementing bespoke processes for each new client. 

2. OML 2: Emerging

An MSP at OML level 2 likely still has low or negative financial performance but has begun to demonstrate better operational discipline through simple controls and procedures, pricing strategies aligned with improving profitability, technician compensation aligned with business goals, and an initial budgeting process. 

In practice, an MSP that has matured to OML level 2 likely has reasonably well-documented processes but may not consistently follow them. They may now be managing some clients more proactively, but break-fix style reactive work is still a meaningful part of day-to-day operations. 

3. OML 3: Scaling

MSPs that operate at OML level 3 have matured to the level of achieving roughly average (median) financial performance and service quality for their PBM. At this level, you can expect to find MSPs that have reasonably advanced standard operating procedures (SOPs) and controls, relatively mature budget plans, solid technician compensation, and more structured customer support than earlier levels. 

An MSP at this level is now likely operating as a true trusted advisor (not just a service provider) and is probably conducting regular quarterly business reviews (QBRs) with their clients. Process rigor at this level is typically stronger than at OML levels 1 and 2, and clients are likely managed under standardized service agreements with clearly defined offerings and MSP SLAs. 

4. OML 4: Optimizing

MSPs operating at this OML level have begun to exceed average financial and operational performance relative to their PBM. An MSP at OML level 4 is now continuously improving well-established SOPs and controls, refining customer-facing and back-office processes, and leveraging advanced technologies and service delivery methods. 

For example, an MSP at OML level 4 is likely to have a strong leadership team, a clear operational strategy, and a highly proactive approach to customer support. In practice, MSP owners at this level are primarily focused on strategy and business growth, rather than day-to-day operations, and client escalations are less likely to become full-blown emergencies because systems and processes are in place to identify and resolve them before they escalate.

5. OML 5: Innovating

MSPs that reach OML level 5 are the leaders in their PBM. They typically have the highest financial and operational performance. These are the MSPs developing strategic partnerships with vendors and other industry organizations to deliver world-class client outcomes. 

An MSP at this level is expected to foster a culture of innovation and continuous improvement. As a result, you can expect to see MSPs operating at OML level 5 continuously innovating, expanding, and refining service offerings, and making data-driven strategic decisions. In practice, you may see MSPs that have reached this level expand well beyond traditional IT service management and be viewed by clients as a true strategic partner. 

How OML levels predict future network monitoring success

OMLs are an excellent indicator of MSP success, with the top quartile of performers earning 2.5x the EBITDA of median peers and best-in-class MSPs delivering 19%+ EBITDA even in the face of slowed revenue growth. As you might expect, that also means OML level is correlated with IT service delivery success, and network monitoring is a big part of that success. 

An MSP at OML level 4 or 5 likely has a mature network management system (NMS) implementation that empowers them to proactively detect and remediate network issues as well as inform strategic decisions such as network capacity planning and hardware refreshes. Beyond simple up/down status and basic SNMP data, these MSPs are typically mapping their networks, intelligently alerting, and managing configurations in an automated fashion. 

However, that doesn’t mean that an MSP operating at OML level 1 can copy/paste an MSP at OML level 5’s tooling and expect the same results. Without the right processes and structure in place, quality information for a mature MSP could be noise for a service provider at OML level 1 or 2. In other words, MSPs should choose the right network monitoring tooling for their maturity level, and sometimes investment in operations may be more prudent than investment in network monitoring tooling. 

MSP network monitoring readiness checklist

To help you nail down your MSP network monitoring maturity, we’ve put together this MSP network monitoring readiness checklist. This checklist will help you understand the current state of your network monitoring maturity and what needs to be in place before you expand. 

Network monitoring at OML 1: Narrow and reactive monitoring

Network monitoring at OML level 1 is often minimal and unstructured. If monitoring is in place at all, it likely supports basic reactive workflows (e.g., a network device goes down → alert is sent to a technician). In many cases, the MSP may be learning about network issues from their clients. 

What does network management look like at OML 1?

• At least 1 client network under management
• Network monitoring approach is highly reactive 
• Limited or no network alert response processes 
• Network monitoring tooling and configurations lack standardization 
• Basic up/down “ping check” style monitoring, possibly supplemented with SNMP data
• Many network connected devices may be unmonitored

What to accomplish before expanding MSP services:

Before moving to the next maturity level, MSPs should have basic network discovery and network alert response processes in place for client networks. 

Network monitoring at OML 2: Monitoring is isolated, not systematic

At OML level 2, MSPs begin to move beyond basic reactive network monitoring. Teams are likely to have basic processes related to network discovery and incident response. In practice, the consistency with which those processes are followed is likely to vary significantly from network to network and client to client. 

Is my MSP OML 2?

• Processes for network alert response are in place, but not rigorously followed
• Most, but not all, network-connected devices on client networks are monitored
• There is a standard network monitoring tool, but configuration may vary widely across clients 
• More advanced network visibility (e.g., network maps, centralized inventory, etc.) is beginning to take shape
• Technicians likely struggle with alert fatigue 
• Some network issues are detected prior to a client reporting them

What to accomplish before expanding MSP services:

Before moving on to OML level 3, MSPs at level 2 should focus on improving network monitoring consistency across client networks. Teams should emphasize getting network-connected devices monitored, enforcing process discipline related to alert response, and creating baselines for “normal” network monitoring configurations across networks. 

Network monitoring at OML 3: Monitoring becomes a service

At OML level 3, professional-grade network monitoring is table stakes. Network alerts, proactive responses, and robust network inventories are core to value delivery. MSPs can now begin using network monitoring data to inform conversations, such as technology reviews. 

Is my MSP OML 3?

• Network alert and incident response processes are documented and consistently followed for most clients
• All or almost all network-connected devices on client networks are monitored
• Network monitoring configurations are standardized with minimal variation 
• Most client networks have an accurate network maps 
• Network device inventories are highly accurate 
• Technicians may struggle with alert fatigue 
• Most network issues are detected before a client reports them

What to accomplish before expanding MSP services:

Before moving to the upper tier of OML levels, MSPs operating at OML 3 should emphasize shifting from solid SOPs and alert response to becoming fully proactive, using monitoring data to inform value-focused conversations such as QBRs, hardware refreshes, and capacity planning. 

Network monitoring at OML 4 and 5: Monitoring is how you operate

MSPs that reach OML levels 4 and 5 have proactive network monitoring ingrained in their operations. Mature MSPs are using network monitoring data to inform strategic decisions, influence client business planning, and continuously improve day-to-day operations. 

Both of these levels are expected to be high performers in network monitoring. The primary distinction between OML levels 4 and 5 is the level of innovation, with MSPs at OML level 5 often at the cutting edge of technology and capabilities. 

Is my MSP OML 4 or 5?

• Network alerting and incident response processes are rigorously followed and continuously improved
• Network monitoring data is used to inform strategic business decisions internally and for clients
• Network monitoring configurations are fully standardized
• Alert fatigue for technicians is minimal 
• Automated network documentation software and automatically maintained maps are implemented

What to accomplish to maintain and build on network monitoring success:

Continuous improvement is the name of the game for MSPs operating at OML levels 4 and 5. Teams should be regularly refining and iterating their network management practices and capabilities to improve profitability and drive client value. 

Signs your MSP is not ready for network monitoring yet 

Frankly, MSPs at every level of the OML model need some level of network monitoring. The interesting question is usually “given the current state of my MSP business, is it worth investing in additional network monitoring capabilities or somewhere else?”. 

While network monitoring is near and dear to us here at Auvik, we recognize that “somewhere else” is often the right answer. With that in mind, let’s look at three cases where an MSP might not be ready for additional network monitoring investment. 

Your team doesn’t have an established alert response process

If every network alert is handled ad hoc without any standardized responses, not only are MTTR metrics likely to suffer, technicians are likely to be stuck constantly firefighting and risking burnout. 

If you have basic network monitoring in place and are getting alerts, start with defining your alert response process before you go deeper. The process should include alert priority levels, standard remediation techniques, and SLAs. 

Your packages don’t reflect the cost of the efficiency that network monitoring provides

It’s always possible to do more for your clients, and this is true from a network management perspective as well. However, if you scale up your network monitoring capabilities without billing your clients for the additional value, you can quickly cut into profits. 

This can be a tricky balancing act as every MSP wants to deliver excellent customer service, but at the end of the day you’re running a business and additional capabilities can come with additional cost. There’s no one-size-fits-all solution to this problem, but the key is to ensure that your service offerings and pricing model create a “win-win” for you and your clients. 

For example, your investment in intelligent network alerting could allow you to offer a pricing tier with stricter SLAs for clients that value fast time to resolution or have stringent uptime requirements. 

Your team is at capacity already

This challenge is a bit of a catch-22 for MSPs. Often, there are tools that can help you move faster, but your team doesn’t have the bandwidth to implement them. In these cases, when it comes to network monitoring MSPs can find themselves stuck in a negative feedback loop where they are constantly firefighting due to strictly reactive network monitoring capabilities and don’t have the bandwidth to implement solutions that will allow them to become more proactive. 

Teams that find themselves in this situation have a few options. First, they can invest more in people and hire additional technicians to manage the workload. For a growing MSP, this might make sense. Alternatively, they can make the tough choice to de-priortize some work and allow the team to implement a solution that can move them in a more proactive direction. In those cases, network monitoring tools with low time to deploy and time to value (TTV) are ideal. 

How to choose the correct network monitoring tool for your OML level

We’ve covered a lot of ground on maturity levels and different MSP network monitoring challenges so far. Let’s tie that all back to something highly practical: what MSPs at the different OML levels need from remote monitoring software. 

What OML 1 MSPs need in a network monitoring software

MSPs at OML level one should be focused on basic visibility, not sophistication. Your network monitoring tooling should be utilitarian, affordable, and capable of alerting you when something goes down. Usability and low maintenance overhead are typically more important than advanced features that your processes can’t support (yet). 

Key criteria: 

• Easy to deploy
• Basic network discovery 
• Basic device inventory
• Online/offline alerting
• Low cost 

What OML 2 MSPs need in a network monitoring software

Frankly, from a tooling perspective, OML levels 1 and 2 are similar. Primary differences are likely to be in operational maturity and process discipline rather than tool capabilities. 

Key criteria: 

Everything in OML level 1, plus:

• Scalability 
• Basic SNMP (or a similar network protocol) support to capture device data
• Basic network documentation 

What OML 3 MSPs need in a network monitoring software

MSPs at OML level 3 have professional-grade network monitoring as a core capability. At this maturity level, teams typically require more advanced features that empower them to be more proactive and profitable. At this level, MSP network infrastructure tools often begin to require multi-tenant/multi-client support capabilities to avoid operational bottlenecks.

Key criteria: 

Everything in OML level 2, plus:

• Dynamic network maps
• Intelligent alerting
• Network reporting
• Multi-client management 

What OML 4 & 5 MSPs need in a network monitoring software

MSPs at OML levels 4 and 5 are high performers who are optimizing and continuously improving their operations and value proposition. Therefore, they typically require the most advanced capabilities and look to automate and integrate more than lower maturity levels.

Key criteria: 

Everything in OML level 3, plus:

• API access and integrations
• Advanced network visibility and traffic analysis 
• Automated network configuration management and backup 

Consider Auvik for your network monitoring tool needs

Auvik Network Management (ANM) is a simple-to-deploy yet powerful network management software with robust network monitoring capabilities. MSPs can get Auvik up and running in minutes and can typically see value from the network monitoring tool in less than an hour. Fortunately, that ease of use doesn’t come at the expense of capabilities or business value. Independent research has shown Auvik has a 173% ROI over three years, and ANM empowers MSPs with advanced network monitoring capabilities, including dynamic network mapping, intelligent alerting, and a robust library of network reports (including QBR reports

If you’d like to see what Auvik can do for you, sign up for a free (no credit card required) 14-day trial today!