3 Trends Driving Adoption of Managed Service Providers (MSPs)
Data. From website analytics to Internet-enabled refrigerators that alert us when we’re out of milk, the number of data points consumers create every moment of every day is simply astounding. And smart businesses are always looking for ways to leverage that data to boost sales, deliver better experiences, and control costs.
Organizations are struggling to manage all of that data, causing them to turn to Managed Service Providers (MSPs) to instill order. And for many businesses, the data infrastructure employed by an MSP has a huge impact on their overall decision. In this post, we will explore how an MSP’s choice of infrastructure vendor can have an impact on their success—and ultimately the success of their customers.
Trends that Are Driving MSP Adoption
According to the Shore Group, the average cloud budget will increase by 35% this year. As businesses increasingly invest in cloud services, many are turning to MSPs to provide a comprehensive solution. Why?
- Hybrid cloud setups: Many companies are loathed to put all of their eggs into one basket, instead opting for a hybrid cloud environment that lets them take advantage of the cloud’s inherent flexibility and cost savings while still maintaining some on-premises infrastructure. Making all of the pieces work together, however, presents challenges—and MSPs are uniquely positioned to help businesses create a workable solution.
- IoT devices: The increasing prevalence of IoT devices gives companies even more data to collect and inform decisions. But managing massive amounts of data is no easy task, causing many businesses to search for partners—like MSPs—to whom they can outsource.
- A shift from traditional product models: As businesses look for any way possible to improve both the customer experience and their bottom line, many are opting for “as-a-service” offerings over traditional product offerings. They’re turning to MSPs to ensure they’re getting every bit of value out of all of their data.
How MSPs Can Capitalize on These Market Trends
Recent research indicates that the IT managed services sector will increase 50% over the next five years. With the growth in the market showing no signs of slowing down, it’s imperative that MSPs choose a data infrastructure vendor that will allow them to capitalize on these market trends rather than missing the opportunity. But this isn’t the only reason why MSPs need to reevaluate their vendor. The desire to create flexibility in their own customer acquisition while also enhancing customer satisfaction are at the top of the list for many MSPs. Additionally, creating opportunities to increase cost efficiency, improve the value of service offerings, and align storage procurement to CAPEX/OPEX preferences will separate successful MSPs from those that lag behind.
Offering customers the best possible infrastructure platform that will fit their needs is not an option—it’s a necessity. MSPs that recognize this, and take the steps necessary to ensure their preferred vendor is the ideal solution, will be poised to meet the market’s needs and demands.
What MSPs Should Look for In a Vendor
What MSPs need is flexible and consumption-based infrastructure that can be hosted on- or off-premises allowing organizations to reap the flexibility and scalability of the public cloud while enjoying the control and performance of dedicated infrastructure. MSPs that choose a platform that meets these criteria are better able to scale capacity with ever-changing business demands while keeping costs in check.