Managed service providers commonly use cloud-based RMM and PSA software tools to perform and organize their work. These tools streamline different aspects of the MSP's workflow to increase efficiency and prevent technical issues or practical tasks like billing from falling through the cracks.
New MSPs may wonder if they can get away with using only one of these tools—or neither—or may plan to start with only one and add the other solution to their tech stack later on. A more in-depth understanding of the functions of each of these tools will help you work out which is needed more urgently in your MSP, why you really need both, and features to look for when choosing software solutions for your managed services business.
Remote Monitoring and Management (RMM) Software
Remote monitoring and management (RMM) software functions as the eyes, hands, and feet of your MSP. It gives you full visibility over all of the endpoints your MSP services and allows you to monitor and manage them from a remote location rather than needing to travel to your clients’ premises in person.
Being able to monitor all of their clients' computers and systems remotely (and simultaneously) allows IT professionals to move from a break-fix model in which they are constantly putting out fires to a "fire prevention" model in which they can identify and fix issues before the client even realizes there's a problem.
The following are key tasks performed by an RMM solution:
Remote Monitoring
- View machine and server counts in a centralized dashboard.
- Track the status of each client's hardware, software, and networks centrally from a management console. This allows for efficient network infrastructure control.
- Identify unauthorized network activity.
- Monitor vulnerabilities and security threats.
- Produce alerts when a problem is identified, such as high bandwidth usage, high CPU usage, low memory, low disk space, downed devices, halted software services, or a security threat.
Remote Management
- Automatically create support tickets when troubleshooting issues are identified.
- Provide remote access features so that technicians can log in and troubleshoot client endpoints remotely.
- Ensure seamless patch management and take care of security vulnerabilities.
- Perform configuration changes, install updates, and run scripts.
- Fix client issues remotely by killing processes, installing or uninstalling software, and scripting.
Reporting
- Gather data on client systems and generate custom reports on system health and activity.
- Analyze the health of networks and devices and create performance reports.
- Log entries for configuration, app installation, and patching areas, and include this data in performance reports.
Professional Services Automation (PSA) Software
While RMM software provides full technical visibility and allows technicians to troubleshoot computers remotely, PSA tools function as the "brain" of the MSP—taking care of the business processes that go into the day-to-day running of the company.
PSA software—as seen in the name—automates and centralizes professional service tasks, ranging from marketing and sales to customer service, accounting and billing, human resources, and more. While the RMM provides a centralized overview of how client networks and devices are performing, the PSA provides a centralized overview of how your business is performing and allows you to take care of your business operations and processes in a single place.
The functions a PSA performs include essentially all of the functions of enterprise resource planning (ERP) software plus client and ticket management. Here are some of the functions performed by a PSA broken down into categories.
Customer Service
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Email and chat support
- Tip: Using an MSP collaboration solution like Thread with a PSA allows you to meet your clients where they are—such as in Slack or Microsoft Teams—for more efficient communication. We also offer a centralized inbox so that you receive all ticket-related communications in one place.
Ticket Management
- Create, track, action, and close tickets
- Tip 1: Our Magic AI tool automatically categorizes, prioritizes, and assigns tickets to technicians for the fastest possible resolution times. This significantly enhances the ticketing functions of our partner PSAs.
- Tip 2: Your RMM can feed into your PSA and create tickets automatically when there is a technical issue.
Client Relationship Management (CRM)
- Client portal
- Client contact details, locations, and document management for your SLAs (Service Level Agreements)
- Automated emails when tickets are created or resolved
- Other CRM features
Accounting
- Quote management
- Expense tracking and time tracking
- Billing and invoicing
- Tip: Your RMM can feed asset management data into your PSA for billing purposes. Your PSA can also feed billing information into your chosen accounting software tool.
- Revenue forecasting
Procurement
- Purchase orders and software subscriptions
- Inventory management
- Vendor relationships
Production
- Project management
- Workflow management
- Data collecting, including:
- Open and closed tickets
- MSP productivity KPIs such as average response times, resolution times, and first-contact resolution rates
Human Resource Management
- Employee availability
- Track employee activity for billing (virtual timesheets)
- Track employee performance
Governance
- Internal documents and policies
Sales
- Proposal generation
- Lead management
- Product sales data
Which Tool Do You Need the Most?
MSPs need to both perform the work (RMM) and track the work (PSA), so you really need both. Foregoing either of these essential multitools means replacing the same functions with something else—either a wider range of single-use tools or a significant number of additional employees. Both of these approaches will generally cost you more than opting for a one-stop solution.
However, if you really must start with just one, ask yourself where you are losing the most money and time and work from there.
You should start with an RMM solution if:
- Your technicians spend a lot of time on data collecting, configuration, patching areas, and similar small routine tasks.
- You run on a hybrid infrastructure with virtualized and cloud systems as well as on-premises servers and need to centralize all of these systems' data.
- Your clients don't understand the need for maintenance work to minimize potential downtime, and concrete data would help them understand the impact of your work.
- Your clients' most critical business systems are experiencing too much downtime and they are suffering losses as a result.
You might be able to manage without an RMM tool if:
- You have a homogenous infrastructure with virtualized and cloud solutions that have their own remote monitoring and management features.
- You are covering your monitoring and management needs sufficiently using entry-level and/or manual solutions and don't plan to scale your MSP anytime soon.
Conversely, PSA software might be the place to start if:
- You are losing revenue because your invoicing and billing are all over the place.
- Your labor costs exceed your revenue.
- Tickets are falling through the cracks.
- Your team is losing a significant amount of time on manual time entries and other administrative tasks. (Tip: Thread also helps with this.)
PSA tools might be a lower priority if:
- You have people in-house to take care of marketing, sales, bookkeeping and accounting, and so on.
- Your MSP is still very small and you're managing tickets and bookkeeping processes adequately with spreadsheets.
Can an MSP Go Without Both?
Of course, one might wonder why either of these kinds of tools are needed. After all, didn't IT businesses work perfectly fine without them before? The main reasons these tools are now so essential are:
- MSPs and clients often work remotely nowadays. A 2024 USA TODAY survey revealed that 33% of survey respondents work remotely and another 33% work remotely some of the time. Remote work necessitates digital, internet-based solutions as tasks can’t be performed in person.
- Business operations that were previously manual are now digital (this applies to in-office work, too).
- Widespread adoption of these kinds of tools makes it harder for MSPs that don't use them to compete in terms of the service they deliver for the price.
- MSPs today are often looking to scale. This is impossible with all-manual business processes.
Investing in automation solutions like RMM and PSA tools—along with collaboration integrations like Thread—almost always has an excellent return on investment (ROI) compared to the amount you spend.
What to Look for in PSA and RMM Software
There are a few key features to look for in RMM and PSA tools (and also in any other tools you choose to add to your tech stack):
- They work on both Windows and Mac operating systems.
- They integrate with each other and any other software solutions you use so that data is updated in all programs automatically. Integrating existing PSA tools with your hybrid infrastructures can help you reduce operational costs.
- They automate routine tasks.
- They use AI to improve efficiency and customer service.
- They generate reports.
- They are easy to install and learn.
RMM and PSA Tools Work Together
RMM and PSA software tools serve different but complementary functions. An RMM tool takes care of the technical details that are necessary for client success while a PSA tool takes care of the smooth running of the MSP business.
An MSP that is looking to scale needs both RMM and PSA tools as well as other solutions like firewalls, accounting software, and ideally collaboration tools like Thread. Make sure that the solutions you choose cover all the features you need, are user-friendly, and integrate across the board for streamlined and efficient service.