Today, a large portion of channel companies identify themselves as managed service providers. According to a study by Managed Services Provider (MSP) Standard, 37% of these companies are pure MSPs, meaning they make more than three-quarters of their sales from recurring revenue activities. The study also revealed that 62% of respondents believe that their customers will continue to need some type of managed service in the future. The study found that 69% of MSPs in the global managed services market offer or plan to offer cloud services in the next 12 months.
This is in line with other studies that have predicted strong growth for the cloud market in the coming years. When asked about the biggest challenges they face when selling cloud services, MSPs mentioned price competition (30%), lack of understanding of potential customers (23%), and being stuck with a single provider (18%). These results suggest that MSPs are aware of the obstacles they must overcome to succeed in the cloud market and expand their market share. Managed services provide all the technology for businesses, such as workstations, servers and software.
All customers need to do is use them and pay for them. While expensive, this means there are no capital expenditures for technology, allowing companies to focus their capital on other areas. The Managed Service Provider (MSP) market has seen exponential growth in recent years and is expected to continue growing. Cloud technology is used to create new platforms for both customer engagement and digital transformation.
Nearly 70% of companies work in a multi-cloud environment. However, applying a multi-cloud environment to improve customer engagement is a challenge for most companies due to a lack of skills and infrastructure. This has opened up an opportunity for MSPs with DevOps expertise and those who can offer consumption-based pricing models. The COVID-19 pandemic has also shifted more businesses from on-premises to the cloud, creating more opportunities for managed service providers in vertical markets such as managed security, managed network, managed data center and IT infrastructure, managed mobility, managed information and communication managed collaboration services. Managed service providers offer a range of IT services to their customers in exchange for a monthly subscription fee. They remotely monitor and manage a company's IT infrastructure, usually for a monthly subscription fee.
The growing trend of Bring Your Own Device (BYOD) in organizations is also driving market demand for managed services, as these services help effectively manage and protect BYOD devices. The increase in device density puts pressure on traditional network infrastructure and makes it difficult for businesses to keep up with management and security needs. However, it can also be overwhelming, especially for companies that lack the resources to effectively manage and analyze it. Managed Service Providers (MSPs) offer a comprehensive set of IT services that can be customized to meet the specific needs of an organization. Manage IT with the latest tools and technologies and leverage cloud services to expand capacity as needed. Service providers manage these tasks for their customers, freeing up a lot of time and resources for those customers to manage their businesses.
Enterprise Mobility Management (EMM) is an IT framework for managing and protecting the mobile devices and business applications that employees use. In many cases, managed services can provide a higher level of service than an organization could achieve on its own. Let's look at why organizations benefit from managed IT with the help of some statistics that are quite difficult to ignore. Managed services can help companies understand data and use it to improve their operations by providing the tools and expertise needed. They can also help reduce costs by eliminating capital expenditures on technology while providing unlimited IT resources during contracted periods. Organizations can benefit from managed IT by gaining access to the latest tools and technologies while leveraging cloud services to expand capacity as needed. Managed service providers can also help reduce costs by eliminating capital expenditures on technology while providing unlimited IT resources during contracted periods. Overall, managed services are transforming businesses by providing access to the latest tools and technologies while leveraging cloud services to expand capacity as needed.
They can also help reduce costs by eliminating capital expenditures on technology while providing unlimited IT resources during contracted periods.