SMEs turn to MSPs as economy bites

UK small businesses are flocking to MSPs as they struggle to cope with the economic turmoil.

A new report by JumpCloud claims that nearly two-thirds of SMEs are using an MSP for some or all of their IT needs, up from just over half in the previous report.

JumpCloud’s top tech boss, Greg Keller [pictured], said MSPs are a bargain for cash-strapped firms.

“MSPs are much cheaper than hiring your IT staff.  They are a game-changer for small firms, start-ups and scale-ups that are the backbone of the SME sector. They don’t have the money or the budget to recruit and train IT staff themselves,” he said.

Keller added UK SMEs feel the pinch of the economic conditions, driving them to MSPs.

“SMEs are like small boats in a big stormy sea of economy. Big firms can handle these economic shocks much better than the SMEs can. So the option for an SME to use an MSP is much more affordable for them.”

However, the report also shows that one in five SMEs must start using an MSP and plan to.

Keller thinks SMEs that shun MSPs have a simple technology set-up that doesn’t need them.

“What we’re seeing is, in firms that use a pure Microsoft stack, meaning this is what they’ve chosen to run their whole business on, an IT person who is well trained, MCSE certified, can generally manage it,” he said.

“But the moment a firm starts to use different devices, for example, Macbooks, you begin to have a skill gap.

“This is where MSPs that focus on device security, especially for Apple products, become a desirable option for firms like that.”

He thinks MSPs can do two things to win over that 20 per cent.

“Number one, security. Even if an IT person uses the whole Microsoft stack, they still need to improve at spotting threats.

“MSSPs can be good at selling to those firms cost-effectively.”

Keller said that any firm considering moving to the cloud can and should think about MSPs.

“There are MSPs that specialise in this area that can help with the digital transformation of traditional, on-site IT systems into a more diverse cloud-based world. Those are the two main things we’re seeing, and MSPs are ready to help with that.”