Four Challenges MSPs Need to Overcome to Remain Competitive

As Network as a Service (NaaS) gains traction, Communication Service Providers (CSPs) and Managed Service Providers (MSPs) are experiencing significant growth, especially in multi-family connectivity. The NaaS model appeals to businesses struggling to keep pace with fast-evolving technologies amid labor shortages and a compressed equipment lifecycle. This shift from a traditional CAPEX model to a more flexible, managed approach signals an evident transformation in connectivity.?

The Pain Points of Growing MSPs

As MSPs expand, they increasingly manage Wi-Fi across multiple vendors and market segments, a task that’s both expensive and complex. A recent survey of 65 MSPs highlights some key challenges they face:?

• 65% say their current Wi-Fi platforms are too costly and complex to maintain.
• 75% rely heavily on vendor-specific management systems, which limits flexibility and scalability.
• Many MSPs dedicate substantial resources—between $200,000 and $500,000 annually—on software customization and integration for these systems.
• Yet, 31% still struggle to achieve a unified management interface across vendors.
• 32% cite a need for more skilled personnel as a significant barrier to growth.

The pandemic intensified these challenges, with supply chain issues hitting MSPs hard. This disruption has motivated many to diversify their vendor relationships, creating a demand for a “single pane of glass” that would streamline management across multiple platforms.

The Four Challenges to Overcome

MSPs serve a wide variety of market segments, from senior living and affordable housing to conventional rentals. Each market often aligns with different hardware vendors, which means MSPs must handle an array of proprietary switches, controllers, and cloud solutions that don’t always work well together.

?Vendors usually design products tailored to specific markets and client needs, resulting in a fragmented, rigid network for MSPs. This setup brings several challenges:

1. Costly Training: MSPs must invest time and resources in training their employees on each vendor’s platform, which increases staffing and operational costs.

?2. Dependence on Vendor Roadmaps: Each vendor has its roadmap and priorities. New features are rolled out at the vendor's discretion, leaving MSPs dependent on each vendor’s timeline rather than their needs.

?3. Slower Innovation: Innovation in a closed, vendor-specific environment is inherently slower, limiting the MSP’s ability to offer new features quickly.

?4. Vendor Lock-In: Service providers find themselves “locked in” by vendors. Using access points from different vendors on a single controller isn’t feasible, making it hard for MSPs to switch vendors without significant friction.

?With these constraints, MSPs have limited control over the pace of innovation affecting their business. Many are looking for standardized, open platforms that offer the same foundational capabilities across vendors, paving the way for a more dynamic and adaptable ecosystem.

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Source: Maravedis Research?

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The Open WiFi Solution and Its Limitations

The Telecom Infra Project (TIP) Open WiFi initiative introduces a promising open approach to Wi-Fi management. However, while it supports multi-vendor environments, it does not fully address the “single pane of glass” challenge, as most of today’s MSP-installed base relies on incumbent vendors that do not conform to open standards.

The Promise of CUPS?

The Control and User Plane Separation (CUPS) architecture, which has already transformed mobile networks, could be the game-changer for Wi-Fi. This model separates network management (control) from data handling (user), allowing for more flexibility and scalability. One company making strides in this area is WiBUZ, which applies CUPS principles to Wi-Fi to deliver an approach that enables better vendor interoperability, control, and user experience.

Concluding Thoughts

As MSPs continue expanding into new market segments, their demand for flexible, streamlined Wi-Fi management solutions has grown in parallel. A staggering 65% of MSPs report that their current Wi-Fi platforms are costly and challenging to maintain. As they enter markets ranging from senior living and higher education to multi-family units, managing Wi-Fi across diverse vendors becomes an increasingly complex and critical task. It’s little wonder that achieving a single management platform—unifying various vendor technologies—is a top priority.

The concept of CUPS, proven in mobile networks, is making headway into the Wi-Fi industry and holds promise for addressing some of the most pressing challenges MSPs face today. By separating the control and user planes, MSPs can gain unprecedented flexibility and scalability, allowing them to grow and serve their clients more effectively.

For MSPs looking to remain competitive in this rapidly evolving landscape, embracing CUPS and seeking standardized platforms could be key strategies. Join us on November 12, 2024, for our upcoming webinar , where we’ll dive deeper into MSP challenges and explore cutting-edge solutions that can empower MSPs to stay ahead of the curve.