The global managed services industry is an evolving and dynamic sector. In this article, the trends we see in our work with MSPs are highlighted.
Managed Service Providers take over the entire range of tasks surrounding their customers’ IT infrastructure. With an extensive portfolio of services, they show their expertise in more and more market segments. They are investing in scalability, flexibility and professional end-user support on a daily basis.
Switch to recurring contracts
Many resellers have switched their business models to recurring contracts in recent years. This is driven by increasing customer demand for those flexible, customised IT solutions and the benefits that managed services offer, such as reduced costs, increased efficiency and enhanced security. An important effect is that companies benefit from specialised knowledge and experience and focus on their core business. They no longer feel the need to build and maintain internal teams and invest in customised technologies.
In addition to established resellers who have expanded their offerings to include managed services, some companies are now focusing entirely on cloud-based services and taking advantage of the opportunities offered by the flexibility and scalability that the cloud provides. From there, MSPs take responsibility for regulatory compliance, data security and implementation of best practices.
Cloud adoption and hybrid IT infrastructures
The shift towards cloud solutions and hybrid IT infrastructures continues to grow, requiring MSPs to adapt their services to manage these infrastructures. Furthermore, they are developing services to manage and secure distributed infrastructures and data analytics close to the source.
Investment in technology
Unlike other industries, MSPs tend to use proprietary software for their end-to-end business operations. This is because the specific needs of the MSP market are not always met by standard SaaS applications.
Consequently, investments in technology are being made to improve their level of efficiency and effectiveness. This also means investing in partnerships with high-impact organisations with specific solutions and tooling. When we refer to service providers, they are now strategic partners who contribute to their customers’ overall IT strategy and business goals.
Embedding specialism
Smaller service platforms are also building a strong competitive position and experiencing rapid growth. Looking to 2024 and beyond, we see MSPs looking for more native and embedded AI functions. Especially for ticket resolution and reporting, project management and cyber resilience services. In the face of developments in cyber resilience, here we perceive strong demand for dedicated deployment of offensive cyber security services such as pentesting and red teaming for their clients. They distinguish themselves by using these to provide their clients with real-world attack scenarios and provide more specific advice on policy, management and security measures.
Conclusion
The managed services industry is a dynamic and high-growth market with its own unique trends. To stay relevant and competitive, they are moving to recurring contracts. Furthermore, the entrance of new participants, the focus on in-house software and the growth of AI functionality are just some of the factors that will define the future of the MSP market.
To seize economic and social opportunities, it is necessary to maintain trust in our information and information systems. Keeping control of all processes including their security is becoming increasingly challenging. IT complexity is on the increase, products and services are constantly evolving.
Assessing and updating security strategies is therefore becoming a prominent part within recurring contracts with MSPs. In this respect, the automated red teaming platform CREDS ART is performing a valuable contribution. The shared goal of building resilience against cyber threats leaves no room for concessions on speed or progress.
For sound growth, we jointly take part in proactively increasing operational efficiency.