Why Your MSP's vCIO Isn't Really a CIO
Understanding the fundamental difference between a managed service provider's virtual CIO and true strategic IT leadership.
If you work with a managed service provider (MSP), you've probably been offered their "vCIO" services. The pitch is compelling: get CIO-level expertise without the full-time cost. But after 20 years in this industry, I can tell you that most MSP vCIO programs deliver something very different from what a real CIO provides.
What is a Real CIO?
A Chief Information Officer is a strategic executive who:
- Aligns technology investments with business objectives
- Manages IT as a business function, not just a technical function
- Develops and mentors IT staff
- Evaluates all technology options objectively
- Manages vendor relationships across all providers
- Reports to the CEO and board on technology strategy and risk
- Drives innovation and competitive advantage through technology
What Most MSP vCIOs Actually Do
In practice, most MSP vCIO services are:
- Sales-focused: Recommendations primarily feed the MSP's own service pipeline
- Tactically oriented: Focus on the technology the MSP manages, not the full IT landscape
- Limited scope: Only address infrastructure the MSP touches (servers, networks, endpoints)
- Vendor-biased: Recommend solutions from partners with referral arrangements
This isn't necessarily malicious—it's a structural conflict of interest. The MSP vCIO works for the MSP, not for you. Their success is measured by how much they sell, not by how well they optimize your total IT spend.
A Real-World Example
I was brought in to help a manufacturing company that had been working with an MSP's vCIO program for three years. The MSP vCIO had recommended:
- A complete server infrastructure refresh ($180,000)
- Enhanced backup and disaster recovery ($45,000/year)
- Expanded managed services coverage ($72,000/year)
The recommendations weren't wrong—they were just incomplete and biased toward the MSP's services.
After a comprehensive assessment, we discovered:
- The company's SaaS applications (Salesforce, Workday, etc.) represented 60% of IT spend but weren't being managed strategically
- Their cloud infrastructure (AWS) was significantly over-provisioned, wasting $35,000 annually
- The proposed server refresh could be replaced with a cloud migration, saving $100,000 upfront and $30,000 annually
- Their software licensing was a mess, with unused licenses costing $25,000 annually
Total savings identified: $190,000 in year one, $55,000 annually thereafter
None of these opportunities were visible to the MSP vCIO because they fell outside the MSP's service scope.
The Key Differences
Let me be specific about what distinguishes a real vCIO from an MSP vCIO:
Strategic Planning
- MSP vCIO: Creates a technology roadmap for infrastructure the MSP manages
- Real vCIO: Creates a comprehensive technology strategy aligned with business goals across all systems
Vendor Management
- MSP vCIO: Manages the MSP's relationship with you
- Real vCIO: Manages all your vendor relationships, including the MSP
Budget Optimization
- MSP vCIO: Proposes additional services and upgrades
- Real vCIO: Identifies savings opportunities across all IT spend
Staff Development
- MSP vCIO: May provide some technical guidance to your IT staff
- Real vCIO: Develops career paths, compensation strategies, and soft skills for your IT team
Scope
- MSP vCIO: Infrastructure and endpoints the MSP manages
- Real vCIO: All technology assets—SaaS, cloud, on-premise, mobile, IoT, data analytics, etc.
Accountability
- MSP vCIO: Reports to the MSP's management
- Real vCIO: Reports to you and acts in your best interest
When MSP vCIO Services Make Sense
To be fair, MSP vCIO services can be appropriate for:
- Very small businesses (under 20 employees) with simple IT needs
- Organizations that only need infrastructure management
- Companies where IT is truly just "keep the lights on"
But if your organization:
- Has 50+ employees
- Uses multiple SaaS applications
- Has custom software or integrations
- Needs to make strategic technology decisions
- Has in-house IT staff who need leadership
- Views technology as a competitive advantage
...then you need real strategic IT leadership, not a sales-focused MSP vCIO.
The Independence Factor
The fundamental issue is independence. A real vCIO's recommendations aren't influenced by what they sell because they don't sell anything. At Rocker, we explicitly don't offer managed services or sell technology products. This allows us to:
- Recommend the best solution, even if it means spending less
- Hold your MSP accountable for performance and pricing
- Evaluate all options objectively
- Focus on your business outcomes, not our sales targets
What to Ask Your MSP vCIO
If you're working with an MSP vCIO, ask them:
- "What percentage of your recommendations over the past year involved services from your employer?"
- "Do you evaluate our SaaS applications, cloud spending, and software licensing?"
- "Have you ever recommended we reduce spending with your company?"
- "Who do you report to—me or your MSP management?"
- "Do you receive commission or bonuses based on sales?"
Their answers will tell you whether you have a strategic advisor or a sales consultant.
The Bottom Line
MSP vCIO services have their place, but they're not a substitute for independent strategic IT leadership. If you're making significant technology investments, managing complex systems, or trying to transform IT from a cost center to a strategic asset, you need advice that's not influenced by sales quotas.
The question isn't whether MSPs are good or bad—many provide excellent services. The question is whether you're getting truly independent strategic guidance or sales recommendations dressed up as strategy.
Your business deserves to know the difference.
About Bill Dotson
Bill Dotson is the founder of Rocker, a technology management and consulting firm. With over 20 years of experience, Bill helps organizations transform their IT operations from cost centers into strategic assets. He specializes in virtual CIO services, technology risk management, and making complex technology concepts accessible to business leaders.