In the age of technology, Managed Services Providers (MSPs) are becoming an increasingly important part of businesses’ IT infrastructures. Nonetheless, there is a question: What will MSPs look like in the future?
Acknowledged as the native hot spring for technology vendors seeking past the transactional realm of managed services, hardware sales & its repetitive revenue model remains a pinnacle standard for most companies in the channel. Also, it’s a model that evolves rapidly to maintain pace with the current technology sector landscape complications. Combining this natural transition with two years of Covid- 19 pandemic disruption, you’ll get an MSP ecosystem in 2022 that is fluctuating between excitement and risk in the future. Let’s discuss some top MSP trends of 2022 that will transform the future of business.
Top Trends of MSP in 2022
Trends of MSP in 2022
Most big companies have realized that an in-house digital transformation team is not self sufficient. The ever-growing disruptions in the digital sector are pretty expensive to keep up with. Also, most small businesses cannot make investments that match the in-house support services that larger companies can maintain. Therefore, outsourcing has become the ace growth sector in managed service providers (MSPs) for the future.
Although security concerns over data will continue to pose a threat, 78 percent of companies all over the globe feel confident about their outsourcing partnership firms. The USA alone outsources more than 300,000 jobs each year. It depicts how the trend of outsourcing as an
Managed Service Provider (MSP) is still prominent in the business world. As a result, MSPs can utilize outsourcing to grab a significant market space.
2. IoT and Blockchain
As per the report by IoT Analytics, the connected devices count is expected to reach 10 billion by 2020 and boom to 22 billion by 2025. But to leverage IoT and Blockchain technologies, companies need to develop the required skill sets; otherwise, it will be a drag. Recruiting or gaining in-depth knowledge of these evolving technologies is time-consuming and inefficient.
With this report acting as proof that IoT is the talk of the town, it is clear that an MSP will play a prominent role in assisting companies to incorporate these innovative technologies to stay market-relevant in the future. Moreover, with a top-notch managed service provider, businesses can pinpoint the knowledge gaps to optimize the strategies across relevant business operations that work on the cloud.
3. Hyper-converged Infrastructure
Running on ready-made commercial services, hyper-converged infrastructure soaks a firm’s infrastructure together. It combines computing, networking, & storage to build a single, ready-to-use system that allows the business to scale faster towards digital transformation.
A hyper-converged infrastructure consists of virtual computing, virtual network, and virtual SAB at a basic level. But deploying this infrastructure is also a complex procedure that needs care and expertise.
A Managed Service Provider (MSP) can help a company install a hyper-converged infrastructure. Their expert team can fathom the current and future needs of the company and help build and deploy a single infrastructure that makes their business operations more efficient.
The cloud computing industry has extended its reach into every corner of the IT sector. It’s gaining more traction by the day since even the smallest firms are dreaming of becoming globally recognized. Moreover, the ability to offer managed services from anywhere is only possible through the cloud.
Cloud technology is already used to create new platforms to boost digital transformation that can support businesses in numerous ways. However, most companies aren’t capable of shifting their operations to cloud platforms due to skill shortages & internal infrastructure. Managed Service Providers can help companies efficiently use this technology in their operations at a competitive price.
5. Enhanced Security
With increasing cyberattacks daily, companies must secure their IT infrastructure. It requires them to correctly identify the highest risk touchpoints that can be breached, develop solutions to secure them, deploy them, and then monitor them for any leaks 24 x7. To implement these security efforts and put a contingency plan in motion, a company must have the correct skill set. Unfortunately, most small- medium-size companies encounter a significant challenge: a limited IT budget. It holds them from deploying the necessary security measures for their infrastructure.
Juniper Research reports reveal that cybercrimes have caused trillions of dollars in loss for businesses worldwide. The losses incurred in 2019 are around $2 trillion. So it makes cyber security a top priority, regardless of company size. Here we can see a significant role of managed security services.
A managed security service provider assists businesses by securing their infrastructure. Also, managed security services continuously monitor, optimize security measures & regulations, defend, and help companies recover quickly from cyberattacks.
Current Era’s MSP Profile
Managed Services Providers (MSPs) had made rounds in technology channels as early as the 2000s when internet and uptime dependability speeds reached an acceptable level sufficient for seamlessly enabling remote handling of decentralized computer networks. Proactive resellers striving for revenue generated through repeat services could start signing clients through contracts and remotely offer IT essentials such as help desk and patch management administration. However, as hardware product resales deteriorated, changing to a model famous for predictable and repeat revenue streams shouted progress.
But surprisingly, what was some years ago presumed to be a fast-paced reach towards managed services became a snail march to the destination.
The hybrid Managed Service Provider (MSP) model might look like taking a full dive into managed services, but the diversification does make sense from a revenue and resiliency point of view. If Covid-19 has taught some tough lessons to businesses, especially smaller firms, is the requirement for an executable plan B, plan C, plan D, and more. This realization may explain the yearly increase in the percentage of MSPs identifying themselves as a hybrid. Even pure-play MSPs (30%) fulfill frequent requirements for non-recurring revenue work types, like product sales, one-off projects, or consulting fees.
Drivers of Altering Business Model
Among all focus areas, more attention is being given to customer experience. If Managed Service Provider (MSPs) are learning one aspect of the cloud era, clients these days, especially those working in non-IT lines, are purchasing technology directly, usually via SaaS solutions online. To be driven out of the actual transaction has made numerous MSPs rightly look at places they can add value. Providing a superior experience can be one way, which is especially essential for MSPs that operate with clients on long-term contracts.
Excellent CX takes the shape of top-quality communications, omnichannel choice, ease-of-doing-business features embedded into all interactions, creativity, and responsive support. Ex: if an MSP isn’t offering the SaaS solution, they still have participation that will boost their CX quotient exponentially while Consulting. Spoilt for choice customers require help selecting the best solution for their business needs out of thousands of similar-looking online marketplace applications. The MSP’s consulting knowledge builds a stickiness and trust with customers that can be both productive and valuable. Nearly 46% of MSPs state that the transition in customer procurement habits is bringing change in their own business, while 44% said that the demand for business consulting is also driving them in new directions. These two dynamics are intertwined.
Drivers for changing business model
There is a new breed of agile Managed Service Providers (MSPs) emerging who is quick to adapt to changing requirements and specializes in enhancing any existing product or service in order to catapult a company on its growth trajectory. This includes software, networks, hardware, and staffing requirements. MSPs also provide provision for enhanced peer-to-peer networking, modern technologies for easy management of large environments, and the automation of administrative tasks and data center operations.
Hence, we can conclusively say that MSP’s will continue to drive changes and transform the future of both organisations and customers.