Managed Services Providers (MSPs) are a crucial component of enterprise IT infrastructures in the era of technology. The issue remains: What will MSPs look like in the future?
Hardware sales and its recurring revenue model remain the gold standard for most channel organizations. Hardware sales are recognized as the local hot spring for technology providers looking to move beyond the transactional realm of managed services. Additionally, the model changes quickly to keep up with the difficulties in the present landscape of the technology sector.
The MSP ecosystem in 2022 will oscillate between excitement and risk due to this natural transition and the two years of disruption caused by the Covid- 19 pandemic. Let’s discuss some of the essential MSP trends impacting business in 2022.
Top MSP Trends for 2022
1. Contracting out
Most big businesses have concluded that internal teams working on a digital transformation cannot operate autonomously. Additionally, it might be challenging for small enterprises to maintain the same interior support services as larger businesses. As a result, managed service providers now see outsourcing as having the fastest pace of growth (MSPs).
Despite the threat that data security problems will continue to present, 78 percent of businesses worldwide are confident in their outsourcing relationship companies. Every year, more than 300,000 jobs are outsourced in the USA. The trend of outsourcing, as an example, is shown.
The term “Managed Service Provider” (MSP) is still widely used in the industry. MSPs might thus use outsourcing to seize a sizable market share.
2. Blockchain and IoT
By 2020, there will be 10 billion linked devices, and by 2025, there will be 22 billion. This is according to IoT Analytics. To fully utilize IoT and Blockchain technologies, however, businesses must have the required skill sets; otherwise, it will be a burden. Hiring personnel with in-depth knowledge of these emerging technologies takes a lot of effort and is ineffective.
This report’s assertion that IoT is a hot topic makes it clear that an MSP will be crucial in assisting firms in implementing these cutting-edge technologies to stay competitive in the future market. By collaborating with a top-notch managed service provider, businesses can uncover knowledge gaps to optimize strategies across relevant cloud-based business activities.
3. hyper-converged Infrastructure
Hyper-converged infrastructure unifies a company’s Infrastructure and runs on pre-made commercial services. It combines computing, networking, and storage to provide a single, ready-to-use system. This enables the business to expand more quickly toward digital transformation.
On a fundamental level, a hyper-converged infrastructure consists of virtual networking, virtual processing, and virtual SAB. However, setting up this Infrastructure is also tricky and calls for caution and knowledge.
An organization can help install a hyper-converged infrastructure from a managed service provider (MSP). They can create and install a single infrastructure that streamlines their business operations thanks to the expertise of their staff, which comprehends the company’s present and future needs.
4. Cloud
The cloud computing industry has impacted every area of the IT sector. It’s growing in popularity daily as even the smallest businesses aspire to be known worldwide. Furthermore, the cloud is the only way to provide managed services from anywhere.
The development of new platforms using cloud technology is already accelerating the digital revolution and providing several advantages to businesses. However, most firms cannot migrate their operations to cloud platforms due to a lack of accessible personnel and insufficient internal Infrastructure. With the assistance of managed service providers, businesses may use this technology in their operations efficiently and affordably.
5. Improved Safety
Businesses must secure their IT infrastructure in light of the continuous cyberattack increase. They must accurately identify the touchpoints that provide the most risk of breach, devise solutions to secure them, implement those solutions, and then continuously check them for leakage.
A corporation needs the right skill set to apply these security measures and build a backup plan. Unfortunately, most small- to medium-sized businesses face a significant obstacle: a constrained IT budget. They cannot implement the essential security measures for their Infrastructure because of it.
According to Juniper Research statistics, cybercrimes have cost businesses worldwide trillions of dollars. 2019 has seen losses of about $2 trillion. Thus, cyber security becomes a top priority regardless of the organization’s size. We can see that managed security services have a big part to play here.
Businesses receive help from managed security service providers who secure their Infrastructure. Additionally, managed security services continuously monitor and improve security protocols & laws and defend and assist businesses in swiftly recovering from intrusions.
The MSP Profile of the Current Era Managed Services Providers (MSPs) started to gain popularity in the technology channels in the early 2000s when internet and uptime reliability speeds were fast enough to enable the seamless remote management of decentralized computer networks. Proactive retailers who want to make money from recurring services can start working with clients and managing remote IT requirements like patch management and help desks. However, as the demand for hardware products fell, moving to a business model with steady and ongoing revenue sources indicated progress.
Unexpectedly, though, what was once anticipated to be a quick march toward managed services became a difficult struggle.
Although the hybrid Managed Service Provider (MSP) model could seem to be utterly focused on managed services, the diversification makes sense from the perspectives of income and resilience. Businesses, especially smaller ones, have learned the importance of having an executable plan B, plan C, plan D, and more after Covid-19. This realization may be why the percentage of MSPs identifying as hybrids is increasing yearly. Even pure-play MSPs (30%) can fill regular job vacancies with non-recurring income from product sales, one-time jobs, or consulting fees.
Changing business model factors
More consideration is being devoted to the customer experience than other priority areas. One facet of the cloud era that managed service providers (MSPs) are finding is that customers are increasingly buying technology straight from online SaaS solutions, especially those working in non-IT fields. Many MSPs have appropriately turned their attention to areas where they can add value after being forced out of the actual transaction. One approach that is especially important for MSPs working with clients on long-term contracts is offering a superior experience.
High-quality communications, omnichannel options, ease-of-doing-business features integrated into all encounters, creativity, and quick support are all examples of excellent CX. For instance, even if an MSP doesn’t provide the SaaS solution, they can still participate, significantly increasing their CX score while consulting. Customers with too many options need assistance choosing the best choice for their company’s needs from among the thousands of applications available in the same-looking internet marketplace. With the help of the MSP’s advisory expertise, customers develop a stickiness and trust that can be profitable and helpful. A little over 46% of MSPs claim that changes in consumer purchasing patterns are affecting their own company and 44% claim that the demand for business consultancy is also pushing them in new ways. These two forces interact with one another.
Conclusion
A new breed of agile Managed Service Providers (MSPs) is emerging, one that is quick to adjust to changing requirements and specializes in improving any existing product or service to propel a business on its growth trajectory. This covers the need for software, networks, gear, and personnel. Additionally, MSPs offer increased peer-to-peer networking, cutting-edge tools for managing big environments quickly, and automation of administrative processes and data center operations.
Therefore, it is clear that MSPs will continue to influence change and affect the destiny of both organizations and clients.
