By Pete Petrella, Director of Business Development
Our friends at Datto conducted two recent studies to generate a more comprehensive understanding of managed service providers (MSPs). Titled “The Global State of the MSP Report,” over 1,800 MSP providers from around the world were surveyed. The reports gathered an abundance of data and feedback from participating organizations. From the emergence of new, innovative technologies to the impact of COVID-19 on workplace management, Datto’s research can help to articulate the value that a well-constructed MSP can bring to any organization.
Here are some of Lume’s most important findings from the MSP report:
Expect MSP growth rates to decline
Prior to the outbreak of the coronavirus pandemic, MSP providers anticipated a 17% increase in growth over the next three years. However, upon review of the MSP landscape after COVID-19 took root across the world, the growth rate is now expected to be much lower than initially planned. According to Datto’s findings, swirling economic uncertainty due to the global health crisis will likely have negative effects on MSP providers’ business revenue, cash flow, and receivables. In addition, due to several publicized attacks on MSPs in recent years, providers need to beware of rising cybersecurity concerns that could impact client security.
Implementing proper MSP protection
To safeguard clients’ collection of data and information, MSP providers need to be well-versed on the latest and greatest security offerings. The following tools are commonly leveraged by MSPs to protect against cyberattacks:
- Antivirus software
- Two-factor authentication
- Advanced firewall
According to Datto’s report, nearly 75% of MSPs currently maintain a managed security offering, which focuses on antivirus software, backup and disaster recovery, email security, patch management, endpoint detection and response, and content filtering. Many participants in the survey commented that robust antivirus protection is not enough to safeguard a cyberattack; rather, an array of security tools and technologies must be leveraged to deliver a greater sense of peace of mind to MSP providers.
Excitement builds around 5G
The fifth-generation mobile network was unveiled in 2019, and MSP providers are giddy at the thought of 5G’s difference-making technology. As consumers begin to gain access to this network in the years ahead, users will find that 5G capabilities allow for a greater level of connectivity among devices. While the many advantages to a faster, more efficient wireless network cannot be understated, 5G will prove to be costly to implement. As a result, companies with more substantial IT budgets will be able to capitalize on this sophisticated technology well before smaller organizations.
An emerging reliance on the cloud
A reoccurring theme that was commonly expressed within Datto’s reports was the anticipated movement of client workloads off local hardware. About 57% of MSPs expect the use of on-premises servers to decline over the next three years. Accordingly, the assortment of available cloud workload destinations, including Microsoft Azure, AWS, and Google Cloud, are expected to become increasingly prevalent in the foreseeable future.
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For more information on Datto, visit their website.