How MSPs Should Sell to CTOs: The Complete Guide

By
David Frankle
April 29, 2024
min read

Chief Technology Officers (CTOs) play a pivotal role in determining which managed services providers (MSPs) their organizations partner with for IT and technology needs. As the executive responsible for overseeing technology strategy, systems architecture, and innovation, a CTO's buy-in is essential for MSPs aiming to land new clients or expand existing accounts. 

However, selling to CTOs can be uniquely challenging. Unlike other c-suite leaders focused strictly on business objectives, CTOs possess an intricate understanding of complex technological implementations and their ramifications across the organization. Gaining credibility with these deeply technical decision-makers requires catering sales strategies specifically to their specialized priorities and motivations.

This complete guide will empower MSP sales teams to master the art of selling to CTOs. By understanding CTOs' responsibilities, pain points, and decision-making drivers, MSPs can tailor their outreach, conversations, and solution positioning to resonate powerfully with these influential executives.

Understanding CTOs

Before exploring how to sell effectively to CTOs, it's important to understand what makes these executives tick. What are their typical responsibilities? How do they spend their time? And what metrics matter most in measuring their success?

Typical Roles and Responsibilities

As technology leaders within their organizations, CTOs tend to share some common roles and responsibilities:

   - Developing and communicating long-term technology strategy aligned to business goals

   - Overseeing evaluation/selection of new systems, software, infrastructure

   - Ensuring scalability, security, reliability of existing IT architecture

   - Supporting integration across disparate systems/tech stacks

   - Managing R&D of new products, services, or internal capabilities

   - Leading software engineering, data science, infrastructure teams

   - Setting standards for emerging technology adoption

   - Managing technology budgets and making cost-driven procurement decisions

   - Liaising between IT department and executive leadership team

While balancing both technical and leadership responsibilities, successful CTOs keep one eye glued to emerging tech trends to anticipate shifts that may impact the competitive landscape.

Key Objectives and Success Metrics

Like any executive, CTOs are focused on driving tangible outcomes that ladder up to the organization's overall business objectives. As MSPs position their services, they must tie their capabilities directly to the metrics most vital for a CTO's success. These may include:

   - System uptime/availability

   - Infrastructure stability 

   - Innovation velocity (e.g. new products/features launched)

   - Time-to-market for technology initiatives

   - Cost optimization 

   - Security posture/risk mitigation

   - Developer productivity/efficiency

   - Automation coverage of manual processes

   - End-user experience/satisfaction scores

   - Reliability of business intelligence reporting

Understanding where an individual CTO's priorities lie within this landscape is critical for framing an MSP's value effectively.

How CTOs Allocate Their Time 

To sell strategically to CTOs, it's helpful to understand how they spend their days. While activities vary across companies and industries, most CTOs dedicate their time across four primary categories:

   1. Strategic Planning: Roadmapping technology strategy aligned to business goals, long-term capacity planning, budgeting, tracking external innovation.  

   2. Technical Oversight: Evaluating emerging technologies, architecting solutions, engineering review/quality control, security strategy.

   3. Team Leadership: Recruiting, mentoring, scaling teams, facilitating cross-departmental collaboration. 

   4. Administrative: Procurement, contract negotiations with vendors/MSPs, status reporting to executives, budgets.

Of these areas, MSPs have the biggest opportunity to alleviate CTOs' administrative headaches. By positioning themselves as strategic partners rather than vendors, forward-thinking MSPs can not only strengthen client relationships over the long term, but also free up CTOs to focus more deeply on driving transformative innovation.

 

Top Frustrations and Challenges

To craft resonating messaging, MSP sales teams must tap directly into CTOs' biggest frustrations. Some examples of top pain points include:

   - Juggling conflicting priorities across redundant systems

   - Migrating from legacy architecture/code to modern platforms 

   - Integrating fragmented solutions into a seamless technology stack

   - Continually educating executive peers on tech investments

   - Ballooning cloud costs uncontrolled by business units

   - Falling behind competitors leveraging emerging innovations

   - Cyberattacks/worrying about data loss or leakage

   - Losing top engineering talent to tech giants  

   - Communicating technology's value in business terms

By positioning themselves as trusted advisors who help alleviate these universal CTO headaches, rather than just another vendor, MSPs demonstrate true partnership potential and strategic value from day one.

Getting CTOs to Embrace Change

Once equipped with deep knowledge of a CTO's world, MSP sales teams must get comfortable discussing change itself. Making major technology shifts rarely comes easily to busy executives. Identifying both the drivers compelling evolution and the sources resisting it is key to moving CTOs successfully towards a new solution.

Drivers For Change

While every CTO's motivations for change differ, several external and internal drivers tend to apply universally:

   - Competitive pressures, as peers adopt cutting-edge capabilities

   - Outgrowing existing systems' capacity to scale 

   - Security threats, cyberattacks, data leaks 

   - M&A integrations requiring improved interoperability

   - Executive pressure or regulatory policies mandating upgrades

   - Vendor dependencies creating risk, high switching costs

   - Opportunity for automation, AI/MLadoption, boosted efficiency 

   - Desire to empower faster innovation velocity internally

By explicitly calling out the forces necessitating a shift - especially looming threats - MSPs can make inertia feel far riskier than change itself.

Barriers Inhibiting Change

Though compelling drivers might propel evolutions, countervailing pressures often hinder CTOs from executing changes. Common barriers include:

   - Concerns over disruption, data integrity risks

   - Integration challenges across existing legacy systems

   - Uncertainty navigating complex vendor/partner ecosystem

   - Large investments already made into existing solutions

   - Stakeholder resistance, change fatigue within teams

   - Unclear ROI requiring extensive business case justification

   - Outsized opportunity cost on CTOs' and teams' time

   - General aversion to shifts not driven by pure technologists

Rather than glossing over these hazards, savvy MSPs address concerns transparently, easing adoption by positioning change as the path of least resistance.

The Status Quo Trap 

Beyond barriers, CTOs' biggest competitor is often the status quo itself. Maintaining existing systems and processes poses less perceived risk than undertaking migration initiatives, making it the default for busy executives. 

To disrupt this inertia, MSPs must spotlight drawbacks of legacy solutions through insightful "PIC" charts conveying:

   - Problems with the current state

   - Business Impacts across operations, staff, customers

   - Root Causes underlying these issues

This sharp framing highlights why flaws with existing systems demand urgent action, making change feel less painful than standing still.

Delivering Value to CTOs 

With CTO psychologies unpacked, we can now explore tactics for showcasing how MSPs directly address their priorities. Tailoring messaging to the metrics, pain points, and change motivators covered above allows MSP sales teams to demonstrate tangible value.

Technical Capabilities

While cost and efficiency matter, leading with technical strengths builds immediate rapport with detail-oriented CTOs. MSPs should emphasize capabilities that:

   - Alleviate integration hassles through open architecture

   - Enable flexibility, avoiding overspecialization or vendor lock-in  

   - Offer built-in automation, analytics, visibility that accelerate workflows

   - Support constant evolution through modularity/APIs 

   - Balance air-tight security with seamless end-user experiences

   - Abstract complexity through simplicity for less technical teams

   - Provide possibilities beyond keeping lights on to fuel innovation

Rather than defaulting to speeds and feeds, however, conversations must tie technical details directly to tangible impacts.

Business Outcomes

While impressive specifications might dazzle in initial conversations, CTOs need to justify investments based on hard ROI. MSPs should quantify how their offerings translate to:

   - Cost reduction 

   - Revenue gain through productivity/efficiency lifts

   - Higher output from technology teams

   - Accelerated speed-to-market for new initiatives  

   - Lowered exposure to cyberthreats, data loss

   - Improved systems reliability and uptime

   - Better internal and external customer experiences 

   - Increased capacity for innovation velocity 

   - Tighter alignment between IT and executive teams

The sharper the business case, the faster deals progress.

Vision for Innovation

Rather than limiting conversations to immediate challenges, forward-thinking MSPs further entice CTOs by conveying a compelling vision for transforming not just technology environments, but broader business practices over time through cutting-edge capabilities. 

Areas ripe for innovation discussions include:

   - Leveraging predictive analytics and machine learning

   - Launching Robotic Process Automation (RPAs)

   - Piloting Internet of Things sensors 

   - Experimenting with Augmented or Virtual reality 

   - Exploring blockchain solutions

   - Establishing Data Science or AI Centers of Excellence

By positioning themselves as true partners in unlocking innovation vs. just maintaining infrastructure, MSPs become naturally embedded in clients' futures.

Tailoring Your Sales Approach

While the above framework provides helpful guidelines, selling to each CTO ultimately requires catering messaging to their unique situation. 

Framing YOUR Solution in THEIR Context

Rather than repurposing generic promotional materials, sales collateral targeting CTOs should directly reflect that individual executive's:

   - Stated priorities and pain points

   - Language used internally to discuss objectives

   - Revenue growth and cost optimization metrics

   - Buzzwords specific to their industry

   - Existing relationships across technology vendor/partner ecosystem

This hyper-personalized contextualization signals that an MSP truly understands a CTOs role, goes beyond superficial messaging, and is willing to tailor solutions to each customer's reality.

Speak to Their Motivators

Every executive has unique drivers, frustrations, and visions shaping their engagement with new solutions. MSP sales teams should listen intently to uncover each CTO's personal motivations, then directly reflect the specifics factors swaying their decision-making. 

This might include tapping into frustrations from recent service outages, long-standing vendor management headaches, executive pressure around cyber preparedness, lagging behind industry peers, worry about technical debt accumulation, or simply fatigue with status quo solutions and a hunger for change. Identifying the emotional and situational factors consciously or unconsciously weighing on CTOs allows MSPs to craft nuanced, compelling arguments for why the time for change is now.

  

Focus on Business Alignment

While technical aptitude opens doors, CTOs must ultimately justify technology decisions based on business impact. Conversations should spotlights how MSPs' tools/services strengthen alignment between IT teams and executive leadership by fueling priority initiatives around:

   - Enhanced workforce mobility  

   - Omnichannel customer engagement 

   - Secure collaboration across distributed teams

   - Rapid application development/deployment

   - Harvesting data for actionable insights

   - Automating repetitive tasks for higher-value work

   - Centralizing visibility across fragmented solutions

This bird's eye strategic perspective widens framing beyond bits and bytes to position partnerships as accelerants for achieving long-term business goals.

Building Relationships with CTOs

Beyond well-tuned messaging, succeeding with CTOs requires a foundation of trust in which MSPs become seen less as vendors and more as external members of clients' own leadership teams.

Earning Credibility Through Insights 

Demonstrating deep technical and industry expertise can help MSPs establish credibility quickly with detail-focused CTOs. Sales teams should come armed with sharp perspectives on topics like:

   - Innovation happening amongst competitors

   - Emergent cyberthreats requiring vigilance 

   - Disruptive startups to monitor

   - Relevant regulatory shifts on the horizon

   - Best practices gleaned from other client engagements

   - War stories showcasing expertise overcoming past challenges

This thought leadership plants seeds for ongoing advisory conversations versus simple transactional exchanges.

Becoming Their Confidant, Not Just Another Vendor

Earning CTOs' trust requires a authentic relationship grounded in transparency and commitment over time. MSP sales team should demonstrate:

   - Willingness to speak hard truths rather than overpromise

   - Understanding that partnerships outlast any single contract 

   - Commitment to making joint success a shared priority

   - Motivation to grow as trusted advisors, not one-off vendors

   - Recognition that relationships are marathons rather than sprints

   - Commitment to both celebrating wins and tackling setbacks together

By forging genuine connections that extend beyond surface-level niceties, MSPs morph from suppliers into integral members of the leadership team.

Key Takeaways for Selling to CTOs  

With an array of strategies now unlocked, let's connect the dots on overarching best practices:

   - Obsess over both technical excellence and tangible business value

   - Deeply understand CTOs' motivations, metrics, frustrations 

   - Identify core drivers compelling change and barriers inhibiting it  

   - Spotlight how status quo solutions negatively impact operations

   - Contextualize messaging and vision to each CTO's perspectives

   - Establish relationships grounded in insights, authenticity, and trust 

   - Recognize that like any human, CTOs buy on emotion and justify with logic

   - Approach partnerships as long journeys rather than quick hits

While selling to CTOs will always remain challenging, those MSPs willing to invest in truly understanding these executives can reframe conversations from vendor pitches into indispensable partnerships. By appreciating how technology decisions weigh both consciously and subconsciously on these influential leaders, sales teams can guide them towards solutions that fuel positive change.

CTOs sit at the intersection of business leadership, technology innovation, and operational oversight. Grasping their multifaceted priorities requires moving beyond assumptions to embrace their distinct mindsets. While no two technology chiefs are identical, thoughtfully addressing the universal frustrations, motivations, and visions outlined here allows MSP sales teams to engage CTOs as empowered partners instead of mere purchasers. 

This humanized approach grounded in empathy, sophistication and trust remains the surest path to forging relationships with those rare breeds who determine which solutions their organizations adopt. By ditching canned sales processes in favor of authentic dialogues that respect CTOs' specialized perspectives, MSPs can shift discussions from tactical vendor evaluations towards strategic partnerships that reap value for years to come.

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