3 Modernization Trends That Indicate MSP Is Evolving Beyond Itself

From our perspective as a constantly developing managed service provider and interactions with colleagues, it’s evident that the sector is currently through a period of unprecedented change. Whereas services based on physical infrastructure were formerly the cornerstone of MSP offerings, cloud adoption – along with security that protects client data regardless of where it sits – is now a key priority for clients seeking the finest managed IT services partners. Clients are increasingly seeking assistance in transitioning entirely to cloud-based architectures that require no physical servers. Naturally, as more client personnel work remotely, remote security measures comparable to centralized offices are required. Modern technology is also extending the reach of MSPs, with telepresence and even augmented. Virtual reality solutions enabling customers to be served and knowledge applied without regard for physical boundaries. 

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While the pandemic expedited these quick adjustments, they symbolize the form of things to come that would have occurred regardless and client requirements that MSPs must adjust to and meet. Three critical modernization trends that MSPs would be wise to include the following: 

Blending the right mix of the Cloud and Serverless Architecture 

Historically, providing clients with on-premise infrastructure accounted for a sizable amount of our company. However, our company sold precisely one server last year…while increasing by 30%. MSPs that have been modernized are now cloud-first, security-first enterprises. Clients are gravitating to updated, best-managed IT services as they pursue cloud transition objectives. We’ve had several companies approach us with plans to shutter their offices and operate entirely in the cloud in the future. 

Suppose you’re an MSP leader who is already calculating the new price structure that these changes will entail as you read this. One suggestion is to simplify the pricing of cloud services. As MSPs continue to modernize, the days of metering workstations are likely to come to an end. Basic per-user support fees will be implemented in its place, with MSPs covering any residual server expenses associated with the shift to the cloud or another stateless solution. 

In our situation, a few unexpected first quotations for serverless clients demonstrated that we required a rethinking of our cost strategy. The original goal was to maximize cloud products without jeopardizing revenue from server infrastructure, backup, disaster recovery (BDR), and other on-premises services. Our updated method now migrates cloud clients to Microsoft Azure and integrates it with best-in-class managed IT services while backing up all Azure data in our own data center. This enables us to deliver enhanced data protection, valuable BDR services, cloud infrastructure, and streamlined pricing. 

Changing Security Requirements Call for every MSP to be an MSSP 

As clients migrate from physical servers to the cloud, their real offices become abstract and scattered. This movement is upending established security approaches, prompting clients to seek new solutions from their managed IT service providers. If employees are not based in the corporate headquarters, they lack access to localized platforms such as a SonicWall or a  

While VPNs are included in most traditional security stacks, a layer of protection is lost at the firewall if a worker is disconnected. Any device used by an employee who has access to company data must also have robust encryption technology and security safeguards if the device is lost or stolen. 

In our situation, we leverage Microsoft Azure security to deploy encryption and remote data access restrictions across an organization’s devices. Additionally, we may enable or disable internet connectivity based on geofencing data, ideal for safeguarding devices in current work-from-home circumstances. Additionally, IT operations managed services on next-generation IT security products ensure implementing VPNs and firewalls capable of protecting individual employees regardless of their location. 

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Those that supply managed IT services to businesses are under increasing pressure to update and prioritize security. At the same time, we’ve discovered that it’s critical to make offers simple for clients, even while the technology being offered grows increasingly complicated.  

Geographical Limitations on An MSP’s Reach – And Competition – Are Disappearing 

Managed service providers for businesses are finding it increasingly challenging to remain outdated when it comes to being secure first. At the same time, we’ve discovered that it’s critical to make offers simple for clients, even while the technology being offered grows increasingly complicated. As with the cloud, a security stack might incorporate are nearly endless. However, clients outsource technical knowledge to you, and the ultimate product is peace of mind. So, again, it’s preferable to maintain a basic price strategy that gives a security stack with all the functionality a client needs, plus a few bonus options for clients who prefer SIEM or deliver all necessary to achieve goals. It’s also critical to stick to your ideas that request a low-cost method that cuts corners: weakening your carefully designed security stack only increases serious risks for the client and your organization. 

Traditional physical boundaries are falling, giving MSPs a window of opportunity to identify and harness new technologies and approaches. 

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