Top 5 Managed Services Providers Trends
The world is undergoing a paradigm change because of emerging trends and technology altering how business is conducted. Due to the significant pressures placed on company models by regulatory, macroeconomic, and other essential market variables, an increasing emphasis on operational efficiency has been necessary.
However, firms may bear the brunt of the impact on income, capital, and cost. As a result, they are rapidly moving towards hiring IT managed services companies to overcome these constraints and reallocate their time to more valuable business operations.
1. Improved stake on security and growth in cyberattacks
Most MSP’s end clients trust that the latter will secure their data and information. Cyberattacks increased in number over the previous year. This has compelled businesses to adopt a ‘security-first mentality offered by ITB managed services companies, where you need to back up your files before they are lost.
As a result, MSPs devote additional resources to securing their end clients’ service infrastructure. It is not enough to have security measures in place; it is also necessary to defend and recover from any attack. MSP business models offered by global managed services take this into account could result in a significant source of differentiation in 2021.
2. Cloud, automation, and outsourcing
Bill Martorell, research director at Forrester Research, discussed three trends affecting MSPs at the NexGen Conference and Expo in Anaheim, California.
Cloud: Cloud has seen increased use to help organizations fulfill their digital transformation needs by constructing new platforms. Due to the incredible expansion of multi-cloud settings, IT managed services companies depend on one cloud while using the other very sporadically. By utilizing consumption-based pricing models, MSPs can significantly benefit.
Automation: Automation is becoming increasingly prevalent in IT environments, and it has the potential to eliminate a significant amount of work. MSPs should anticipate decreasing workloads with each contract, as most processes become automated. MSPs can gain a competitive edge in this space by adding automation solutions to their core services.
Outsourcing: Outsourcing, according to Martorelli, is the third issue affecting the MSP industry. Increased outsourcing activity will cause MSPs to rely less on standard SLAs (Service-Level Agreements) and more on XLAs, as he refers to them. As a result, customer and staff happiness will take precedence over uptime in SLAs.
3. Introduction of telcos and ISVs (Independent Software Vendors)
To help compensate for their current size and demonstrated IT savviness, telecommunications service providers explore ways to expand beyond data services and voice and provide managed products.
As a result, IT managed services companies are well knowledgeable about the subscription model. The incumbent MSPs will have to attempt new methods to boost income in the upcoming year and beyond to avoid competition from telecoms that have just entered the managed services market.
4. Emerging technologies like IoT and Blockchain
Emerging technologies such as the Internet of Things (IoT) can provide significant opportunities for MSPs. According to research, the number of active Internet of Things devices is predicted to reach 10 billion by 2020 and 22 billion by 2025.
To utilize these technologies effectively, organizations must hire IT-managed services companies with diverse skills and knowledge. Competitive MSPs can fill this void by acquiring an extensive understanding of upcoming technology. In addition, its addition may assist them in increasing their market worth offered by IT managed services companies.
SMBs are also expected to use AI, virtual reality, augmented reality, and other cutting-edge technology enabled by managed IT providers in the future years.
5. Increased Mergers and Acquisitions
The market may witness an increase in mergers and acquisitions involving MSP-related tools. This is because competitive suppliers will want to centralize effective selling and provide a comprehensive solution set.
If you are a provider and do not give what the consumer desires, you are eventually creating a chance for him to walk away. If you are unable to develop a skillset, you must ensure leveraging IT managed services companies. As a result, the industry is experiencing an increase in M&A activity involving security solutions, intellectual property, and other critical capabilities.
Without a doubt, opportunities come to those who are prepared for them. To develop a successful MSP practice, a great deal of effort is necessary. They must perfect every procedure, from initial evaluation to contract to sign through IT managed service provider management. They may guarantee that they are prepared to capitalize on trends sooner than their competition by remaining informed.