Strategies for MSPs to Maintain Competitiveness in the Flourishing Cloud Landscape

Contributed by Sergio Farache , Chief Strategy Officer at TD SYNNEX??

In today’s rapidly evolving digital landscape, where technology is at the heart of business operations, the importance of leveraging the full potential of cloud technologies is paramount. Businesses channel the power of digital transformation to stay competitive.

This is where MSPs play a pivotal role. Managed Service Providers, or MSPs, primarily focus on delivering IT and technology services for organizations.

According to TD SYNNEX’s MSP Special Report, this segment of the IT channel is positioned for growth, with 65% of MSPs investing in business planning and consulting. 80% of the MSP survey respondents plan to expand their technology solution offerings, with an eye on selling new high-growth technologies, moving into global markets, and entering new industry verticals.

The numbers highlighted above demonstrate that MSPs are positioning themselves for growth through a keen focus on business planning and expansion of technology offerings.

Furthermore, McKinsey & Company projects that the global value of the cloud will amount to $3 trillion by 2030 for companies that go beyond adoption. MSPs, responsible for overseeing cloud deployments on behalf of their clients, are well-positioned to seize this growth opportunity. However, this journey is not without its share of challenges.

In this article, we will explore how MSPs can establish themselves as leaders in the expanding cloud managed services market, all while navigating complexities, such as cybersecurity concerns. We will also provide insights into the resources available to support the unique demands of their clients.?

Overcoming Obstacles: Tackling Operational and Security Hurdles

While MSPs have multiple areas of focus, such as help desk and user support, cost management and strategic IT planning, security remains a very crucial component for MSPs as they take care of and ensure the success of their customers. The goal is to proactively manage and maintain the client’s IT infrastructure, applications and systems, so they run smoothly. MSPs are much like tech support teams for businesses.

According to Canalys estimates, the global demand for cybersecurity managed services will grow 16% to $70.2 billion in 2023. The substantial growth is fueled by multiple factors, including the growing scale of malicious attacks, an industry-wide shift towards cloud, subscriptions and services, pursuit of higher profitability.

With no surprise – applying security measures is no longer optional. In response, MSPs are implementing security best practices to safeguard their clients against prevalent threats such as malware, ransomware and phishing attacks.

Considering the multitude of factors discussed earlier, let's take a brief look at some of the obstacles that MSPs often face:

1. Meeting the demand for rapid solution deployment in line with clients' expectations.
2. Navigating resource constraints when assisting clients.
3. Addressing the gap in expertise required to meet the evolving demands of clients' solution needs.

Understanding these challenges mentioned above requires a closer examination of the significant evolution in the operational model that MSPs have undergone. In the past, businesses adopted a reactive approach, with an emphasis on a holistic lifecycle management experience. Consequently, there was limited proactive monitoring of client systems and operations, with MSPs primarily engaging in project-based interactions.

Today, in the current IT landscape, the adapted managed services model has evolved to operate more efficiently around the clock. It prioritizes proactive monitoring, subscription-based service models, and long-term IT strategy, aligning services more closely with customer needs. Many MSPs have embraced cloud technologies and automation to streamline IT management, reduce costs, and enhance overall efficiency.

Fueled by preventative maintenance, the evolved managed services model demands that MSPs prioritize ongoing, proactive IT management practices. Fortunately, by partnering with a trusted and experienced distributor, you can access support and refocus your efforts on delivering favorable business outcomes for your end customers.

Gaining a Competitive Edge in a Rapidly Growing Cloud Environment

At a more granular level, the global cloud managed services market is expected to reach $164 billion by 2027, up from $86.1 billion in 2021.

Staying ahead in the ever-expanding realm of cloud computing entails a blend of factors, and can be categorized into three primary areas of recommendations for MSPs:

1. Strategic Positioning: The initial step involves making a deliberate decision about where you wish to operate within the vast technological landscape. Defining this scope enables you to adopt a more strategic approach toward specialization.
2. Competency Building: Subsequently, it is crucial to establish and reinforce a robust framework of competencies and skills tailored to your chosen specialization. When shaping this framework, you address the skills and capabilities that align with your specialized areas, ensuring both you and your team have a clear understanding of the requirements.
3. Consultative Guidance: It's essential to remember that a significant part of your role not only revolves around facilitating the setup, provisioning, and delivery of solutions and services but also involves offering valuable guidance to your clients in areas that have a direct impact on their businesses.

In a nutshell, MSPs can secure a competitive edge in the market by strategically choosing their areas of specialization, clearly delineating their skill sets, and providing tailored solutions coupled with expert guidance to drive favorable business results for their clients.

For MSPs seeking ways to streamline their operations and enhance efficiency, TD SYNNEX's StreamOne? MSP-Ready Cloud solutions offer a compelling solution.

Streamlining Cloud Solution Deployments: How TD SYNNEX can Help

At TD SYNNEX, we unlock growth for the future and deliver business outcomes by balancing speed, simplicity and being intent on the success of partners, vendors, and our other key stakeholders.

Keeping our MSP partners at the forefront of our strategy, we have developed a comprehensive suite of MSP-Ready Cloud solutions, available through our StreamOne? Cloud Marketplace. These solutions are designed to enhance efficiency, reduce operational expenses, and deliver positive business results for your clients.

Here is a complete list of our StreamOne? MSP-Ready Cloud solutions available, organized by use cases applicable throughout the industry:

• Infrastructure: Azure Virtual Desktop and Active Directory Domain Services (ADDS).
• Data Protection: SMB Fraud Defense (Microsoft/AWS), Identity Management, Cisco Duo on AWS, NetApp with FSx on AWS, and Proofpoint Essentials on AWS.
• Business Continuity/Disaster Recovery: Backup on Azure, Site Recovery on Azure, and Veeam Backup and Replication on AWS.
• Productivity: Amazon Workspaces.

Think of our StreamOne? MSP-Ready Cloud solutions as an assembly line in the automotive industry, a concept dating back to the era of industrialization. These solutions provide a quality-controlled foundation that can be duplicated consistently. By leveraging this framework, you avoid the need to constantly reinvent the wheel or commence from square one, ultimately leading to an accelerated time-to-market.

These pre-designed solutions are both replicable and adaptable, enabling your organization to swiftly and effectively implement cloud solutions for your clients. This frees up valuable time that can be redirected towards honing other core competencies crucial for maintaining competitiveness in today's growing cloud managed services sector.

Discover how our StreamOne? MSP-Ready solutions can streamline and simplify the deployment of cloud solutions for your clients.

For further insights, download the MSP Special Report, as well as the full 2023 Direction of Technology report.