Consolidating tools has significant benefits in both the short and long term. The obvious advantage is the immediate time and cost savings from reducing the number of tools to manage, update and renew. Simplifying the technology stack is a strategic move that can boost overall operational efficiency and reliability. 

It’s undoubtedly faster and simpler to manage everything on one centralized console and apply standard policies and rules to the tools, minimizing inevitable human mistakes. However, MSPs need to consider critical factors before consolidating their stack.

Define the goals for the consolidation

Before executing consolidation, review your current performance metrics and major areas technicians are spending their time on, and estimate what could be the measurable benefits of consolidation. Look at three major parameters.

1. Time spent on maintenance of the existing tools. Estimate how much time technicians spend on deploying, managing, and updating the existing tools, and how much time they spend switching contexts, consoles, and synchronizing settings.
2. Human errors. Track down tickets created due to misconfiguration of tools, update issues, and failures of tools because of technician mistakes.
3. Training time. Estimate how long it takes to onboard a technician to use the technology stack. Business grows, new people join the team, and training time can be a significant productivity killer, not to mention the mistakes newcomers can make. 

Build a process for tool consolidation

After the goals are defined and the current tools are evaluated, document the process of implementing the new tools. The transition may take time, and you will need to keep your whole team on the same page with the process. The six steps below will not only ensure a smooth transition but also provide a blueprint for future consolidation projects.

1. Select tools for consolidation and choose a platform that you will use to consolidate your technology stack.
2. Identify redundancies with the existing tools and tools offered by the platform.
3. Prioritize the transition to the new platform based on its immediate impact on your operations. Depending on available resources and ongoing projects with your customers, it might make sense to start with tools that provide the most efficiency, or it might be more reasonable in your current situation to transition with minimal impact.

4. Test the tools. Implement them in a sandbox or subset of the infrastructure, designing and conducting tests to ensure their performance meets expectations.
5. Educate your team. Dedicate time to training your team on using the new tools and troubleshooting them. Having worked with hundreds of MSPs on their consolidation projects, I can attest that this is a critical step that defines the final result.
6. Roll it out to all customers. The faster the consolidation is implemented, and the standardized stack is deployed, the quicker MSPs realize the benefits.

Choose the right platform and tools

Nowadays, MSPs use hundreds of tools, and a few dozen platforms can be used to consolidate the technology stack. There are five criteria to consider, while deciding on the platform for consolidation.

1. Functionality. The platform should enable the capabilities you need today and the capabilities you plan to provide in the future. For example, if you offer only backup and antivirus now and plan to expand to EDR or XDR in the next year, you have to choose a platform that will allow you to make that transition.
2. Pricing. In most cases, you want to opt for consumption-based pricing, calculate your total cost of tools based on your current environment and the future expansion plan, and compare with other options, including the current infrastructure.
3. Extensibility and APIs. The platform should provide API for integration, integrations with the tools that you use and capabilities to expand and customize the platform, as with the development of your technology stack, you may want to implement additional integrations and customizations.
4. Geographical presence. If you are using a platform in multiple countries, you should look into the local regulations, especially on data location, and choose the platform that complies with the regulations of the countries where you do business.
5. Peer community support. If you want to understand how many MSPs similar to you use the platform, look into peer reviews and IT forums. Second-hand experience may be helpful to uncover best practices and receive community support.

Vendor consolidation is a strategy

Technology stack consolidation offers competitive benefits for MSPs beyond cost savings. However, MSPs must strategically assess and consolidate their tech stacks to enhance efficiency, boost reliability and improve service quality. By leveraging third-party validation, focusing on integration capabilities, and avoiding unproven or resource-intensive solutions, MSPs ensure they are well-equipped to meet current and future demands. 

Finally, consolidation optimizes management, security and compliance. With fewer products to manage, MSPs can avoid the distractions and complexities that slow down response times and simplify compliance. 

A well-consolidated tech stack helps MSPs reduce complexity, close security gaps and open new revenue opportunities, which positions them for long-term success in a competitive market.