Top 7 Managed Service Provider Trends in 2021 Your Business Should Be Aware of
Learn how to innovate quickly while maintaining focus on your business!
With the increased use of cloud-managed services for IT, it is projected that there will be a 50% increase in this type of technology over the next five years. In fact, according to Markets and Markets, the managed service provider industry will reach $282 billion by 2023 which is 56% more than what was seen last year.
It is true that there has always been a need for talented management and leadership. However, the face of business today has changed dramatically. The market trends have shifted tremendously over the past few years, and innovative entrepreneurship is now more important than ever before.
The changing world means that businesses no longer rely on internal expertise to keep up with changes in technology or other regulations; they must be able to innovate quickly in order to stay competitive, which can’t happen without outside help.
You may not be aware of it, but your company is probably paying for some IT services that you can do yourself. For a fraction of the cost, you could be outsourcing and freeing up staff to focus on what they are best at – the business side.
The passage above explains how managed services or IT services works in businesses and how it benefits them through increased productivity and efficiency with their primary operations.
A managed IT service provider is a company that will take care of the day-to-day upkeep of your equipment. This means they are constantly monitoring, maintaining or managing, improving, supporting and resolving any issues while also reporting on their progress – all in line with industry standards.
The rise of managed IT services and cloud computing will be the downfall of traditional technology providers. That’s because a managed service provider doesn’t just help with adoption—they also help with ongoing expenditure, risk management, and more.
The past few years have been a tumultuous time for the world, and there is no denying that. Senior business leaders are scrambling to find ways to be more competitive in an increasingly digital economy, and with many traditional avenues of marketing becoming irrelevant, managed service providers are undergoing their own kind of transformation. Let’s explore some of the key trends that will shape how these organizations tackle changes in technology-driven markets over the next decade.
Top 7 Managed Service Provider Trends in 2021 :
- 1. Outsourcing, Cloud and Automation
Cloud technology is already being used to improve businesses digital transformation. More and more companies are finding that they need to do it, but the application of a multi-cloud environment can be challenging for them, due to lack of skill and infrastructure. A cloud managed services provider can enable businesses to adopt this type of technology by offering easy and affordable scaling.
At the same time, the IT industry is also seeing a rise in automation. This has helped teams become more efficient and get a substantial amount of work done in lesser time. But each business needs different levels of automation depending on their unique needs. As more businesses are disrupted by technology, a managed service provider can provide automation and offer assistance in implementing process customization.
There are many people who might not be aware that in-house skill is no longer sufficient to address the changing needs of the industry. That’s why companies like ours have had to move on from SLAs (Service Level Agreements) and focus more on customer satisfaction going forward.
- 2. Internet of Things (IoT) Analytics Report
With the number of connected devices expected to grow to 10 billion by mid-2021 and skyrocket to 22 billion by 2025, it is crucial for businesses looking to leverage IoT and AI technologies. Hiring or having employees gain substantial knowledge of these emerging technologies can be time-consuming and inefficient. This report shows that there are many benefits from combining both technologies together, especially when it comes to a more sustainable workplace.
MSPs are the solution to your IoT adoption woes. With this report being a validation of IoT and it is safe to say that MSP will play a huge role in helping enterprises adopt innovative technologies to remain market-relevant, in the future. Moreover, with an MSP handy, businesses can identify knowledge gaps in order optimize their cloud strategy across relevant business operations.
- Hyperconverged Infrastructure
Hyper-converged infrastructure creates a unified system that compiles all the company’s needs in one place. It integrates computing, networking, and storage to create a seamless experience for the business. This allows it to scale faster with digital transformation in mind.
A hyper-converged infrastructure is a complex process that takes some consideration and care. The typical architecture includes virtual computing, virtual storage, and virtual networking.
A hyper-converged infrastructure is a complex setup which requires careful contemplation and expertise to implement. At the core of this architecture are three important pieces: Virtual computing, Virtual Storage, and Virtual Networking. A Hyper-Converged Infrastructure can bring many benefits with its easy deployment model but it also has drawbacks along the way as well because no silver bullet exists for all use cases.
A managed service provider can help a business set up their own hyper-converged infrastructure. They do this by understanding current and changing needs of the enterprise, as well as helping them create and implement a single, unified infrastructure that streamlines processes.
- Merging Tools for Productivity Enhancement
The increase in mergers and acquisitions of tools that service providers use to operate their businesses is indicative of the need for holistic solutions.
The managed IT services sector has seen an increase in mergers and acquisitions over the last few years. One reason for this trend is because service providers are looking to offer a complete solution for targeted enterprises, which can only be done with the help of other software or company offerings.
A managed service provider needs to be able to offer a full suite of solutions, not just one. Not being able to provide something that their customer is looking for will lead them to go elsewhere and potentially lose the client. This year should see MSPs seeking more mergers and acquisitions in order to expand their IP, security services or other skillsets.
- Securing Your IT Infrastructure
The number of cyberattacks is increasing at a rapid rate, which makes it increasingly important for businesses to take the necessary steps to secure their infrastructure. To do so, they need to first identify all of the touchpoints that are at the highest risk of being broken into and then work on creating solutions that will protect them against hackers. To have the peace of mind that your business is secure from malicious attacks, you need to invest in security for your infrastructure. One major issue most companies face is a limited IT budget, which restricts costly measures like network monitoring and patch installation.
The burden of managing cybersecurity falls on the shoulders of smaller businesses who don’t have the resources required to do so.
The costs of cybercrime are surging to staggering levels. Juniper Research reports that in 2019 alone, cybercrimes have accounted for trillions of dollars being lost. The amount totals $2 trillion- and this is just the beginning! It’s time to take security seriously, no matter how big or small your company is.
This is where having a quality MSP comes in. A managed security service provider can help businesses protect their infrastructure. But in addition to that, they continually monitor and defend against cyberattacks by providing protection for these networks from any vulnerabilities that may exist.
Furthermore, the services optimize the company’s cybersecurity measures and regulations with a focus on protecting customer data. This is done through several means such as data encryption and other techniques aimed at securing sensitive information.
- Upskilling Staff to Provide Outcome Based Services
The customer is king, and the clients are demanding more than just a product. They want to know that when they buy something from a company, it will make their lives better or easier in some way. What’s changed? A lot of things have changed- industry standards, consumer needs, business requirements for documentation- but most importantly: people want to see results and outcomes.
Technology has changed the way companies do business. As a result, managed IT service providers are now using advanced analytics to provide concrete data on how well they’re managing cloud services. In order to stay competitive, these companies must continue to learn and upskill in new technologies. They will be seen evolving and diversifying their style of management and adding consulting services to their clients in order to measure results.
- IaaS Supporting Business Operations
Technology is here to stay. Businesses, in order to be successful and keep up with the latest trends, must adopt new technologies into their operations to make them more efficient. The challenge lies not only in having the skills necessary to manage these new technologies but also being able to afford them by acquiring both hardware and software resources for workloads that differ from a company’s core competency.
A managed service provider can provide a wide variety of services, including infrastructure-as-a-service. This model delivers a computer infrastructure to support business operations on an outsourced basis. It is important that you understand the different models before making your decision about which one would be best for you and your company’s needs.
A managed service provider can offer Infrastructure as a Service (IaaS) among other types of managed services available through their offerings to meet your company’s needs in many ways.
There are many advantages to businesses who utilize subscription-based billing, including cost, security and scalability.
Businesses will be able to easily expand or contract their computing capabilities depending on their needs. The monthly subscription fee is also more affordable than the one-time upfront purchase price for most traditional models. This pricing strategy allows small business owners to start out with a modest server that can grow as they need it without having to make another large investment in technology all at once.
Industry standards, regulations and technologies are constantly evolving to meet new challenges and market changes. As we say at Managed IT Services Cincinnati, those who build their technology infrastructure for the future are not only prepared, but able to adapt more easily with change compared to those who are not.
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