That time with Sandiford was the first of many managed services discussions with vendors, MSPs, industry experts and even end-users. The past decade has been a whirlwind of change for IT managed services, from the first commercial remote monitoring and management applications to the latest cloud and mobility solution integrations. During that time, a handful of very early adopters blossomed into a thriving community of MSPs who are supported by a multitude of vendors, distributors and training programs. The industry has come a long way, but where will it go in the next decade?
The Current Managed Services Playing Field
That rapid managed services growth can be attributed to a number of factors, including the advances in remote management technologies and the opportunities presented by the recurring revenue model. A number of solution providers started an MSP practice to protect their accounts, responding to the threat caused by new competitors that already adopted these proactive management technologies.
Another key benefit of managed services is the ability to reduce the cost of delivering services to business customers. When an MSP can monitor their clients’ networks and system performance, they can often spot potential issues and take corrective action without rolling a truck. Automation also allows providers to cost-effectively grow their business—letting them add clients and offer new services without having to significantly expand their workforce. There are few downsides to implementing these new technologies, and all can be overcome with the right approach.
Managed services are still in the early growth stage in the channel, with a majority of solution providers still not involved—and even fewer considering themselves dedicated MSPs. In the latest CompTIA Trends in Managed Services report, just 4 out of 10 respondents indicated that they provide remote management and approximately half of them identify themselves as true MSPs. Today, few MSPs report more than 50 percent of their revenue comes from managed services, with hardware and software sales and break/fix still playing an important role in their business. While some IT companies have shown success by going to a 100-percent recurring revenue model, others (for a number of reasons) are prospering with a hybrid service plan. One size or shape doesn’t fit all…
Preparing for the Next Big Thing
Are you ready for managed services 2.0 (or even 3.0)? Implementing an RMM and other automation systems (such as a PSA platform) is just the first step when starting an MSP business. It takes time to create effective and efficient services routines that can then be automated with these managed services tools. Those processes should be considered “works in progress” for MSPs, requiring continual review and tweaking to keep pace with client, internal business and technology changes.
A common question for those already established in managed services is “what comes next?” The future MSP model will likely be more evolutionary, rather than revolutionary. As clients adopt new technologies or identify additional business system needs, providers need to look for ways to automate and link them into their managed services infrastructure and support programs. For example, medical offices need support and data backup for their electronic medical records solutions. MSPs, vendors and other facilitators are actively integrating these systems into their offerings.
Other integration opportunities include:
- Cloud services
- Print managed services
- Managed security services
- Mobility
- Online backup and disaster recovery
Each of these is happening now and it’s surely just the tip of the managed services iceberg. What will the industry look like a decade from now? Only time (and innovation) will tell, but the CompTIA MSP Partners Community is actively discussing this topic and how providers can best prepare for the opportunities that come with the change. If you’d like to get a leg up on the competition, join in the conversation.
Brian Sherman is founder of Tech Success Communications, specializing in editorial content and consulting for the IT channel. His previous roles include chief editor at Business Solutions magazine and industry alliances director with Autotask. Contact Brian at Bsherman@techsuccesscommunications.com.
