Emerging Trends in the Future of Managed Service Providers
With businesses more dependent on IT systems than ever, the IT industry is evolving rapidly. There’s pressure to keep up with the latest technological innovations while managing the growing complexity – creating a high demand for managed service providers (MSPs).
According to a recent report, over 60% of organizations are expected to depend on MSPs by 2025, and the managed services markets is expected to reach $393.72 billion by 2028. Here are the top trends that managed service providers should keep on their radar to stay ahead of the curve and provide the best services to clients.
Cloud Computing
Cloud computing has been slowly dominating the market, but that’s only expected to continue in the next few years. Based on research from Gartner, public cloud end-user spending is expected to reach nearly 600 billion USD in 2023, up from 490.3 billion USD in 2022.
With the current macroeconomic and inflationary conditions, cloud computing represents safety and innovation while supporting growth amid uncertainty with its agile and scalable nature. And as more applications and workloads are migrated to the cloud, businesses are seeking help in managing their multi-cloud environments – and that requires MSPs.
Hybrid cloud configurations are also growing in popularity because they blend the best of public and private cloud capabilities, so MSPs that offer cloud management and migration capabilities offer valuable services.
Focused Cybersecurity
Security breaches are on the rise. According to research from IBM, the global average cost of a data breach in 2023 was 4.45 million USD, a 15% increase over the previous three years. About 51% of organizations are planning to increase security investments as a result of a breach, including planning and testing, employee training, and implementing threat detection tools. Companies that use security AI and automation have an estimated 1.76 million USD in savings.
Because MSPs are responsible for providing security services that can identify and mitigate cyber threats, secure networks, and ensure compliance, this is an important trend to track. Managed service providers have to consider emerging threats, such as data breaches and the inherent risks associated with cloud computing, remote work, and mobile devices.
AI and Automation
Artificial intelligence (AI) and automation are changing virtually every industry, including managed services. In 2024, 42% of companies have reported exploring AI use within their company, and over 50% of companies plan to incorporate AI technologies in 2024. In total, that’s 77% of companies either using or considering the use of AI –totaling over 250 million companies.
With that considered, AI and automation are among the top trends that MSPs should leverage in the next year. AI is highly useful for monitoring network traffic, detecting cybersecurity threats, and predicting system failures, while automation frees human workers by taking on repetitive, error-prone tasks. The role of MSPs is to ensure that companies are secure and compliant while improving customer service and efficiency.
Industry-Specific Solutions
One-size-fits-all solutions were once the norm with IT, but more and more businesses and service providers are recognizing the need for personalized, industry-specific solutions. MSPs have a standout capability in crafting industry-specific solutions that address each company’s unique challenges, requirements, and goals.
For example, healthcare organizations require robust data security measures to protect patient data, but the systems must be reliable to ensure accessibility and availability. MSPs with sector expertise can configure managed IT services that safeguard this highly sensitive information without compromising operational efficiency – and by extension, patient care.
Sustainable IT Practices
The world is becoming more eco-conscious as a whole, leading to an emerging trend of sustainable IT practices. According to a report from Capgemini, 79% of organizations consider sustainability as a crucial factor in managed IT services.
Also known as green IT, sustainable IT focuses on the production, use, and disposal of technology in a manner that reduces its environmental impact. It’s not just good for the environment, but for helping operational costs and demonstrating corporate social responsibility.
Some of the key elements include e-waste reduction, renewable energy, energy efficiency, data center efficiency, and sustainable manufacturing. Managed service providers are a big part of this revolution and help businesses reach their sustainability goals by optimizing IT resources and adopting greener IT practices.
Internet of Things (IoT)
IoT, a network of connected devices that can exchange data and communicate with other devices, has been making waves in recent years. As companies amass high volumes of data, IoT can reduce costs, improve efficiency, and enhance productivity.
MSPs can assist with the migration to IoT by aiding companies with the process of procuring, managing, and monitoring IoT devices to ensure that they’re secure, operational, and valuable. With the guidance of MSPs, companies can have reduced costs, increased scale, and greater speed to market.
Big Data Analytics
Big data includes structured and unstructured data that inform company operations and help with data-driven decision making. Companies have access to more data than ever, but if they can’t interpret it in a useful way, it holds no value for improving customer experience, service delivery, or market trends.
Managed service providers play a vital role in helping companies update their data management program and governance systems to ensure data is clean, secure, and accessible. As a result, companies can achieve better network performance, improved security, more personalized marketing efforts, and better productivity.
Staying Ahead of Trends in Managed Services
It’s important to keep up with emerging trends in managed services to stand out in a crowded market and deliver more value to customers. As you can see, these trends are shaped by the technology advancements that are disrupting both business and consumer markets, including AI and automation, IoT, cybersecurity, and cloud computing.
At LDD Consulting, we provide tailored IT services to Albuquerque companies to help them gain a competitive edge in a dynamic and demanding market. Whether you need comprehensive, industry-specific solutions or assistance with a specific business problem, our IT services are customized according to your needs and goals. Book a call today to discuss your business’s IT solutions.