Successful MSPs need to add more services

Workers are pictured beneath clocks displaying time zones in various parts of the world at an outsourcing centre in BangaloreMSPs who want to be successful will have to add a lot more services to their portfolios.

Beancounters at 451 Research have penned a report which says that the managed services market is continually evolving and the appetite from customers for more services is rising as they roll out more changes across their organisations.

As more users take steps to increase digital transformation they are looking for MSPs that can take more of the burden out of running their infrastructure, the report said.

The research firm is pointing to “Everthing-as-a-Service” as the next big cloud opportunity with those able to offer automated technology with high-touch delivery the most likely to succeed.

MSPs that want to take advantage of the next wave of growth will be expected to deliver a range of services – IaaS, PaaS and SaaS – and go beyond that to deliver emerging options, like managed cyber disaster recovery and networking services.

The report, with the catchy title, “Voice of the Enterprise: Hosting and Cloud Managed Services study “showed that managed and security services were attached to roughly half of the total hosting and cloud opportunity, and that is set to increase year-on-year.

There is also an indication that those service providers that decide to concentrate on a specific geography or vertical market will also be more successful because customers are looking for high-touch delivery. The market is moving away from cloud construction to cloud consumption and those channel players that recognise that shift and emphasise services rather than tin will be in a stronger position.

The report said that there was a significant opportunity for technology vendors to partner with service providers to offer higher-value, niche and vertical offerings as these services rapidly emerge.