Why Businesses Will Engage Managed Service Providers in 2020
February 3, 2020
In the realm of managed services, change in market demand is a frequent occurrence. A couple of years ago, there was a heavy demand for virtualization, and now containerization is in the spotlight. With these frequent changes, how can a Managed Service Provider (MSP) prepare for market demands before they occur? The key is understanding managed services from a client’s perspective, and why they’re ultimately engaging MSPs to handle their managed services.
At Secure-24 | NTT, we’re constantly focused on delivering comprehensive managed services to our clients. Here are the top five trends we’re seeing that will drive businesses to engage MSPs in 2020.
Trend #1.) A Change in Managed Services Reporting
The systems that run business operations have continued to grow in importance, and as a result, businesses have become dependent on their services and applications. In this type of environment, CIOs are now reporting directly to their CEOs more than ever before.
It’s become a frequent occurrence for CEOs to ask their CIOs questions like: “How can we come up with more creative IT solutions?” and “What are we doing to stay up-to-date with our technology?” We’re seeing that cost-drivers are the lead factor behind questions like these, and in-turn, this new trend of managed services reporting. But why does this trend lead to CIOs engaging MSPs? The answer is simple. CIOs and their orgs now have to tackle more challenges on a regular basis.
Due to a high demand for skilled IT employees, there’s a rising difficulty for the CIO org to find and keep talent within their organization. On top of that, they need to monitor and control their attack surfaces, and make decisions between utilizing a private or public cloud. Once CIOs engage an MSP to alleviate them of these challenges, CIOs and their orgs are then able to focus their efforts and attention on their core business; leaving a lasting and positive impact.
Trend #2.) Standardization
Standardization is a major trend in the managed services marketplace because of its ability to reduce cost while increasing performance. Through proper standardization, businesses can build consistency, repeatability, and drive out errors in their systems.
For managed services to be standardized, they need to meet a defined standard in order to deliver consistency. To do that, standardization relies upon automation; where applications, services, and functions operate on their own, with little to no human input. When automation is utilized, human errors are significantly reduced, and systems operate more efficiently.
The benefits that standardization can provide are attractive to businesses across the globe, and due to their vast experience with standardization, MSPs are being engaged for this service. As an example, Secure-24 | NTT can leverage our experience with a wide range of clients to provide the optimal and cost-cutting solution for businesses.
Trend #3.) Leveraging the Channel
If you look across a traditional IT organization that’s running on premise, that organization is responsible for a multitude of things. They have to purchase software, hardware, and services from a variety of companies; resulting in hundreds or even thousands of vendor relationships. Traditional IT organizations like these are the reason why leveraging the channel is one of our top five trends for 2020.
Businesses are looking for someone to manage their relationships with vendors while offering the best technology on the market; causing them to turn to MSPs for help. For example, with a managed service that’s OS and down, what sits underneath that? To name a few, there’s the server manufacturer, OS manufacturer, storage manufacturer, and antivirus manufacturer. Once a client shifts into the channel, a lot of those services and relationships are managed by the MSP; the ideal one point of contact.
A single MSP could be managing a plethora of clients and environments, so there’s an opportunity for the MSP to negotiate better terms for their clients. When an MSP goes to a vendor, they’re not bringing one potential client with them, they could be bringing hundreds or thousands; allowing an MSP to secure lower costs, which they can pass on to their clients. This purchasing power is one of the more desirable benefits that MSP clients receive.
Trend #4.) “As-A-Service” Capabilities
On the consumer level, “as-a-service” capabilities have been a significant trend in recent years – things like applications for car sharing and restaurant delivery are quick examples – but now we’re seeing clients asking for “as-a-service” or microservice capabilities when it comes to their managed services.
Microservices are an attractive solution for businesses because they’re pay-as-you-go services. That’s why we’ve seen a growing number of clients approaching us and saying, “here’s how I run my business today, and here’s the services I require.” This type of interaction, at its core, is similar to ordering something. You go to the provider or manufacturer, find what you want, at the price you want, and pay for it. Once the order’s placed, the provider is responsible for all of the elements necessary to deliver what you ordered; MSPs deliver microservices in a similar manner. It’s all about balance.
Businesses need a high quality, standardized solution that they don’t have to staff themselves, build themselves, and they’re looking for a price point that hits their willingness to pay. Once MSPs find the balance amongst all of these factors, they’re able to deliver the microservices that clients are looking for.
Trend #5.) Multi-Cloud
Business executives are asking themselves, “how do I have a set of apps that are still on premise, apps that are in a private cloud, and apps that sit in the public cloud?” As a result, businesses are looking for providers who can offer a multi-cloud solution that will make managing their data and applications a breeze. However, they’re not only looking at one public cloud, the trend that we’re seeing is towards multiple public clouds.
Clients are looking at Amazon® Web Services, Microsoft® Azure, and Google® Compute, and are interested in possible solutions across all three environments. In addition to that, whatever solution is in place, there needs to be no identifiable difference to the end users. This is where MSPs come in.
MSPs have the capability to provide a standardized and capable multi-cloud solution; where managed services feel the same to end users whether they’re in the public cloud, private cloud, or on premise. That’s why clients are beginning to engage MSPs for a multi-cloud solution, they’re able to provide managed services that have consistency in process, delivery, and service levels.
2020 will be an exciting year in the realm of managed services. On top of the coming innovations in technology, businesses will engage MSPs and develop lasting partnerships. With Secure-24 | NTT, we’re strategically focused on each of these trends and are looking forward to the partnerships we’ll create in 2020.
Scott Clark is the Vice President, Sales at Secure-24 | NTT.