According to industry research, Cloud Managed services for IT will increase by more than 50% over the next five years. In fact, according to MarketsandMarkets, the managed service provider industry will reach a whopping $282 billion by 2023, a 56% surge from what the market saw last year.
The reason is that business leaders are accepting that internal expertise is no longer sufficient to run an efficient business. The changing market trends and industry regulations directly impact their day-to-day operational demands. Not having the skill to keep pace with technology only holds back the business’s efforts to grow. That’s where Managed Services Providers come in. This article lists key Managed Services Providers’ trends to watch out for in 2021.
What is Managed Services, and what does a Managed Service Provider (MSP) do?
Managed Services or Managed IT services refers to outsourcing specific business processes and functions to make operations more efficient and optimize costs. A managed service provider enables a business to focus on its primary operations, increasing their productivity and efficiency in growing their target market.
A managed IT service provider is unlike on-demand services. They continually monitor, maintain or operate, improve, support, resolve, and report on business operations, ensuring they meet all industry regulations and market needs.
Cloud Managed services are helping businesses scale faster. But to match their changing needs, the managed IT service providers are also seeing a paradigm shift in their technologies and processes.
It’s clear from the above that a managed service provider doesn’t just help with technology adoption. They also help control ongoing expenditures and reduce the risks of adopting new technology. While the market is already seeing increased capital expenditure for cloud and managed IT services by businesses, the industry is evolving.
This article lists all the trends to change the managed service provider sector. From the cloud, Automation, and outsourcing to IoT and blockchain, hyper-converged infrastructures, enhanced security measures, and more, let’s walk through them all to help you understand how managed service providers are evolving too in the wake of digital transformation.
Top 7 Managed Services Providers Trends to Watch Out for :
1. Cloud, Automation, and Outsourcing
Cloud, Automation, and Outsourcing Cloud technology are already being used to build newer platforms to improve a business’s digital transformation. But applying a multi-cloud environment to enhance customer engagement is a challenge for most enterprises due to the lack of skill and infrastructure. A cloud-managed services provider can enable such businesses to adopt the technology into their processes with consumption-based pricing models, offering easy and affordable scaling.
At the same time, the IT industry is also seeing the adoption of Automation. Removing redundant and repetitive tasks from their plate has helped teams become more efficient and get a substantial amount of work done in lesser time. But the Automation needs of every business are different. That’s where a managed services provider comes in to offer and help implement custom automation across other business processes.
As mentioned, business leaders have realized that in-house skill is no longer sufficient to address the changing industry needs. That’s why you will now see managed IT service providers moving from the age-old SLAs (service-level agreements) to focus more on customer and employee satisfaction on a continued basis.
2. IoT and Blockchain
According to a report by IoT Analytics, the number of connected devices is expected to grow to 10 billion by 2020 and skyrocket to 22 billion by 2025. But to leverage the two technologies, businesses need a deep skillset. Hiring or gaining substantial knowledge of these emerging technologies is only time-consuming and inefficient.
With this report validating IoT as the most talked about technology, an MSP will play a massive role in helping enterprises adopt innovative technologies to remain market-relevant in the future. Moreover, with a managed service provider handy, businesses can identify the knowledge gaps to optimize the cloud strategy across relevant business operations.
3.Hyper-converged Infrastructure
Running on commercial off-the-shelf services, hyper-converged infrastructure draws a company’s infrastructure together. It connects computing, networking, and storage to create a single, easy-to-use system that enables the business to scale faster toward digital transformation.
A typical hyper-converged infrastructure includes virtual computing, virtual SAB, and a virtual network, at a minimum. But implementing this infrastructure is also a complex process that requires care and expertise.
A managed service provider can help a business set up a hyper-converged infrastructure. Their team of experts can understand the current and changing needs of the enterprise and help create and implement a single infrastructure that makes their business processes more efficient.
4. Mergers and Acquisitions
Another trend you can notice in the managed IT services sector is the increase in mergers and acquisitions – of tools that service providers use to operate their businesses. The reason for mergers and acquisitions to trend in the sector is the need to offer a holistic solution to target enterprises.
A managed service provider needs to be able to offer an integrated solution set. Not providing something a business needs creates grounds for losing them to a competitor. So this year will see MSPs seeking more mergers and acquisitions for IPs, managed security services, and other skills.
5. Enhanced Security
With the number of cyberattacks increasing daily, it is becoming essential for businesses to secure their infrastructure. This requires them first to identify the touchpoints at the highest risk of being broken into, build solutions to guarantee them, implement them, and then continually monitor them for leaks. To implement such security efforts and implement a contingency plan, a business must have the right skills. One major challenge faced by most companies – small to medium- is a limited IT budget. This restricts them from implementing the required security measures for their infrastructure.
Juniper Research reports that cybercrimes have accounted for trillions of dollars being lost. The amount is totaling to $2 trillion for 2019 itself. That makes compromising on security a big no-no, no matter what the size of your business is.
That’s where managed security services come in.
A managed security service provider can help businesses secure their infrastructure. But in addition to that, managed security services continually monitor, defend, optimize security measures and regulations, and help companies to recover from cyberattacks.
6. Outcome-based Services
With industry requirements, standards, and consumer needs changing daily, businesses are seeking result-based outcomes. They want to have pre-defined or expected averages documented clearly to quantify results in real time.
A managed service provider will now be seen using advanced analytics and reporting to state the implemented technologies’ impact and present concrete data. While this will assure businesses of getting the most out of their cloud-managed services, it will also nudge the managed IT service providers to upskill continually. They will be seen evolving their style of management and functions offered, also adding consulting services to their clients to help measure results.
7. Infrastructure-as-a-service
Businesses are now venturing into emerging technologies to make their day-to-day operations more efficient and result-oriented. But adopting those technologies isn’t just about having the right skills but also the resources to afford them – both in terms of the hardware and the software.
That’s where the new-age cloud-managed services provider offers infrastructure-as-a-service (IaaS). The service model delivers a computer infrastructure to support business operations on an outsourced basis. A managed service provider will typically provide the model’s hardware, software, storage, servers, network components, and data center.
The subscription-based billing model of IaaS will offer many advantages to businesses in terms of scalability, cost, and security.
So what is the key takeaway from these Managed Service Provider’s Trends?
Industry standards and regulations are constantly changing. Technologies are ever-evolving. Consumer engagement is getting redefined every day. Put, opportunity comes to those who are prepared, and businesses must keep up with the pace. Now continually improving or acquiring new skills in-house is not a scalable model. It will take businesses months or even years to effectively implement solutions in their day-to-day processes. That’s why a managed service provider is becoming necessary for fast-scaling enterprises.
With an expert-managed service provider like Rapyder, you can implement the latest and upcoming technologies to improve business processes. With deep expertise in AWS cloud services, the team can help you address a wide range of cloud-based requirements.
Rapyder works with businesses to understand their strategic objectives – customer engagement, go-to-market, cost reduction, new products, or being able to adopt innovation. From migration, DevOps, cloud computing services, security concerns, and building a business from scratch on the cloud, the team creates solutions that are tailor-made to suit your existing and changing needs. They then work with your in-house IT and business teams to deploy the processes, methods, and tools. Every solution presented or advice shared with your business is vetted by established research methods and years of experience in the managed service provider industry.
[Read Next : 10 Ways A Managed Service Provider Can Boost Your Business Growth]
Want to know more about how a managed service provider can help your business with digital transformation? Contact us today.
To get the latest insights, research and expert articles on AWS Services, Cloud Migration, DevOps and other technologies, subscribe to our Blog Newsletter here. For AWS Case studies and success stories, visit Case Study Section
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