FINAL WORD
One thing that is certain is the enormous popularity of MSPs today , which shows no signs of abating .
What constitutes a true managed service provider , MSP in today ’ s business landscape ? Terms such as business partner and trusted advisor are frequently applied to channel companies , but being a true MSP is about more than just being a supermarket for services ; it demands intelligence , skill , agility and a customerfocused mentality to deliver .
Today , with a tightening economy and rapidly changing MSP market , the world of managed service providers is more diverse than ever before , so with this in mind , do true MSPs even still exist ?
The proposition offered by managed service providers , MSPs has evolved significantly in recent years . Since the notion of outsourcing key services to an expert third-party partner first emerged in the 1990s , its popularity , as well as the number of MSPs offering their services has soared exponentially . In fact , recent research suggests the MSP market was worth $ 275 billion in 2023 , rising to $ 373 billion over the next five years .
According to a UK Government report published in February this year , the UK MSP market alone consists of an estimated 11,492 active providers . However , the current lack of standard industry classification for what an MSP actually is means the services offered by these providers varies wildly .
Definition
Gartner ’ s Technology Glossary suggests they deliver services , such as network , application , infrastructure and security , via ongoing and regular support and active administration on customers ’ premises , either in their own data centre , hosting , or in a third-party data centre .
Whilst helpful , this is also incredibly vague , showing just how difficult it is to pin down the exact role of a modern MSP .
One thing that is certain is the enormous popularity of MSPs today , which shows no signs of abating . The rise of cloud technology and as a service propositions mean companies of all shapes and sizes , across almost all sectors , are clamouring for the services of a trustworthy partner .
In response , MSPs are broadening their scope even further to add more and more capabilities under the managed services umbrella .
A great example of this is cybersecurity . McKinsey estimates the total addressable cybersecurity market size to be around $ 2 trillion this year , so it is no surprise to see so many MSPs manoeuvring to add it to their portfolio of services offered .
Another example is artificial intelligence , AI , which will be a massive growth driver for many years to come as organisations turn to their MSPs to guide them through its adoption and implementation .
Value add
In such a competitive market , it is easy to see why diversifying offerings makes sense . However , in doing so , it is crucial that MSPs do not lose sight of why organisations turn to them in the first place .
It is rarely for a huge catalogue of potential services , but rather for deep technical expertise in the areas that organisations actually require , coupled with a customer-centric approach that turns the MSP from a basic provider to a true partner .
A quick look at the top-performing MSPs shows these are the qualities that really matter .
Challenges
Of course , delivering this is not always straightforward . Despite the huge opportunities for growth , MSPs are also
INTELLIGENT TECH CHANNELS 75