The MSP market is continuing to grow. In fact, a recent study conducted by Research and Markets found that worldwide IT spending is expected to reach $2.8 trillion by 2023. As systems become more complex, SMBs will increasingly look to managed service providers to provide their expertise. This gives today’s IT providers the opportunity to sharpen their skillset to prepare themselves for the growing market.
With so many emerging technologies, it might be hard to decide which areas to focus your growth readiness activities. This topic and others came up at a recent event hosted by Barracuda MSP in Marbella, Spain, when Brian Babineau, the senior vice president and general manager for Barracuda MSP sat on a panel with Martijn Heerkens and Daan Verheij, two of our partners from PCI Nederlands.
Adapt and grow
The good news is that when it comes to delivering managed services, providers who are already in the industry are in a good position to succeed. In the coming years, Brian Babineau explains, more and more small to medium sized businesses will be relying on MSP’s expertise. However, even with this influx, it is important for MSPs to move the bar forward. To be profitable, MSPs need to continually evolve their services to match the needs of marketplace. For example, the remote workforce and reliance on SaaS applications is continually growing. The MSPs that can adapt to protect and provide services for these customers will be in the best position to succeed further down the road.
Position yourself for success
As the market continues to mature, one of the most important things managed service providers will need to do is work on positioning. Companies are looking for modern workplace services, so it is important to sell to their needs. While it is beneficial to be a Barracuda partner, Daan Verheij explains, customers are looking for solutions and functionality rather than the products themselves. However, building a strategic partnerships with solution providers should not be discounted, these relationships can help you build out your knowledge and branch into different parts of the industry.
Customers need more support
One of the things that we have noticed is that customer conversations are easier, Martijn Heerkens explains. Most customers we see have a one-man IT operation and these days, it is not enough. They are now realizing that they need to be supported 24/7 and that they can’t just rely on one guy. Managed service providers will continue to be successful in this area, because customers are looking for a team of individuals to help support them. That’s one area where we see — as a provider — where a provider like Barracuda MSP can come in.
As the market — and technology — continues to evolve, managed service providers need to evolve with it. To be profitable, managed service providers need to really embrace new changes so they can adapt and successfully support their customers’ evolving needs. For more insight on the state of managed services and how you can grow your managed services business, watch the entire panel discussion here.
Photo: Anton Gvozdikov / Shutterstock.