Phantom Tech CEO on MSP Success Through Resilience and Community

In this two-part episode of “Channel Insider: Partner POV,” host Katie Bavoso sits with Henry Timm, CEO of Phantom Technology Solutions, an MSP known for helping clients prepare for potential issues. With 15 years of experience, Phantom Technology Solutions has earned a solid reputation as an MSP focusing on proactive client readiness.

In Part 1 of the interview, Timm highlights the importance of resilience in facing external challenges. He notes that preparing for disruptions is not just a precaution but a necessity. Whether responding to weather-related blackouts or cybersecurity breaches, companies must have plans to minimize downtime and keep operations running smoothly.

Listen to Part 1 of the podcast:

Watch the Part 1 video:

Navigating power blackout season

Bavoso opens the conversation by asking Timm how he and his clients have fared during recent severe windstorms in Indiana.

Timm responds, “Everyone’s back to normal, and business marches on.” Despite facing 80 mph winds that caused significant power outages, Timm’s team adapted swiftly. This anecdote illustrates a broader lesson for businesses: preparedness isn’t just about handling the everyday—it’s about being ready for the unexpected.

Bavoso highlights the importance of such preparation, noting that “the season we’re walking into… is known as the power blackout season,” given the frequent weather-related outages. Timm confirms that his team regularly prepares for these occurrences by ensuring their clients are ready for disruptions. “It’s a reminder for us to continue conversations with our clients about preparedness,” Timm says, emphasizing the proactive approach that is a hallmark of Phantom Technology Solutions.

The value of compliance in regulated industries

As the discussion deepens, Bavoso turns to Phantom’s client base and reflects on Phantom’s origins. Timm reveals that his company’s roots were accidental — beginning in his garage 15 years ago, it evolved into a successful MSP that caters to highly regulated sectors.

“We started actually over my garage 15 years ago, purely accidental. I had been a biology major and thought I would go down that line of work and propose some ideas around technology to the hospital tech team. I was offered a position, and my career kind of took off from there,” Timm says.

“The MSP came about where I was looking at things that I didn’t like seeing in the marketplace… kind of gave us this opportunity to build something that we hoped would have been on the receiving end as a client. And so we service primarily compliance-driven organizations, mainly manufacturing, legal, and health care,” Timm explains.

“Are you seeing a lot of difficulty right now?” Bavoso probes, hinting at the delicate balance between embracing new tech and maintaining compliance.

Timm acknowledges this challenge, explaining that while clients are eager to leverage new tools, they often lack understanding of the associated risks. He asserts the importance of educating clients on how to implement new technologies responsibly, ensuring that their data usage remains secure and compliant with industry standards.

The education-first approach to client success

Education is a major focus for Phantom, both internally and externally. Timm explains how his team is “highly incentivized to be focused on their continuing education,” which keeps them at the forefront of industry changes. This commitment also extends to clients, as Phantom prioritizes educating them about the technologies they use and the regulatory landscape governing them.

“We want to make sure that we’re providing the best education and resources for our clients, as well as our employees,” he says.

This commitment to education empowers the team and positions Phantom as a leader in the MSP sector. Timm discusses how they actively lead conversations around upcoming legislation and compliance frameworks, helping clients navigate the complexities of cybersecurity requirements. He believes this proactive stance is essential: “We’re constantly looking at future legislation or other compliance requirements that might be coming down the pipeline.”

This approach helps clients stay compliant and fosters trust and reliability, which are critical factors in retaining customer loyalty.

Legislation as an opportunity: Seeing the upside of compliance

Timm expresses a unique perspective on the regulatory changes sweeping across the IT sector. While some MSPs may see new laws, like breach notification requirements, as burdensome, Timm takes a different stance. “I wouldn’t use the word ‘excited,’ but you seem to be hopeful,” Bavoso notes. Timm explains that, in his view, these changes offer an opportunity for MSPs like Phantom to differentiate themselves further.

The focus on compliance doesn’t just protect businesses from legal consequences—it helps them build more secure and robust IT infrastructures. For Phantom, this is an opportunity to be a leader in the industry, guiding clients through the complexities of regulation and helping them avoid potential pitfalls.

The power of community in the IT channel

In Part 2 of the interview, Bavoso highlights the impressive breadth of Timm’s involvement in the IT channel. He’s not just a CEO—he’s on multiple advisory boards and co-founded the Tech Degenerates peer group.

When asked by Bavoso why he chooses to be so active, Timm explains, “I think it’s really important that I give back to the community…and hopefully help someone else get through some of the mistakes that I made because I’ve made several throughout my career.”

His participation stems from a desire to help others avoid the mistakes he’s made throughout his career while simultaneously ensuring smaller MSPs adopt stronger security practices. By being involved in these groups, Timm hopes to “help smaller MSPs to understand things they need to be doing to better secure their clients.”

Listen to Part 2 of the podcast:

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Building a peer community: The origins of Tech Degenerates

The conversation shifts as Bavoso inquires about Tech Degenerates, a peer group that Timm co-founded. How did such an influential group come into existence? “The Tech Degenerates is a community of MSPs and vendors with an equal footing and a playground to share resources back and forth freely. It started, purely accidentally, as a text chain,” Timm admits, revealing that the group began as a simple text chain between industry peers. Over time, this group chat grew to over 150 people who exchange stories, strategies, and tools daily, fostering an environment where leaders could freely share resources and ideas.

Timm emphasizes that the group helps build “free education, consulting, and enablement for vendors and MSPs,” providing tools and resources that weren’t available when many of them were starting out. The informal nature of the group allows for open exchange and support, proving that success in the IT channel can come from sharing knowledge, not just hoarding it.

Fostering collaboration, not competition

One common concern for many MSPs is whether helping their peers might ultimately hurt their own businesses by aiding the competition. Bavoso asks Timm if he ever feels like he’s strengthening his competitors.

Timm’s response is rooted in an abundance mindset. “There’s a lot of strength in the culture of abundance rather than obscurity,” he asserts. This mentality flips the narrative on competition. Instead of fearing competitors, Timm views the success of others as a strength for the industry as a whole.

“Even if someone were to open another MSP right across the street from me…we’re going to approach business in very different ways,” he explains. This perspective is central to Tech Degenerates’ ethos. Timm’s viewpoint teaches businesses that fearing competition can limit growth while embracing collaboration can lead to innovation and improvement.

Getting involved with Tech Degenerates

For those MSPs looking to join Tech Degenerates, the process is both informal and welcoming. Timm shares that many new members find the group through industry events, often meeting existing members at booths or networking sessions, signing up on their website, and joining their Discord server.

This open-door policy reflects the group’s inclusive spirit, making it clear that anyone willing to contribute can benefit from the shared knowledge and resources. Whether through attending live streams, joining happy hour calls, or participating in monthly discussions, there are many ways for MSPs to get involved.

Tune in to the video or podcast above for more insights from Katie Bavoso and Phantom Technology Solutions CEO, Henry Timm — and be sure to like and subscribe for future interviews with solution providers and thought leaders, plus special episodes and opportunities!