Five reasons you need to replace your Cloud Managed Service Provider
Traditional MSPs are outdated. Businesses need more flexible, innovative providers. Consider these key imperatives for transitioning to a future-forward MSP: flexibility, innovation, cost optimization, future-proofing and re-evaluation.
2024-09-28
Is your MSP unwilling or unable to adapt to your business needs? The shift from traditional Managed Service Providers (MSPs) to a more modern, innovation-driven portfolio of services is more than just a trend—it's a necessary evolution for businesses that want to stay competitive in the digital age. As technology continues to advance, the reactive, maintenance-focused model of traditional MSPs is increasingly becoming obsolete.
If you’re rubber-stamping an MSP contract and not finding the flexibility, innovation or cost optimization you need, maybe it’s time to rethink your provider. Consider five key imperatives for making the transition to a more flexible, future-forward model.
Traditional MSP may soon be extinct: Client demands have shifted significantly since 2020, with remote work support and cybersecurity becoming increasingly important. On the other hand, services such as system integration projects and help desk support have seen limited growth. MSPs themselves predict that managed security and managed cloud services will be their primary sources of revenue in the coming years, while traditional revenue streams will decline. The days of MSPs primarily reselling hardware and software are numbered.
(Source: Acronis)
1. Embrace Proactive Problem-Solving
Traditional MSPs are reactive by nature, focusing on maintaining the status quo. They often wait for problems to arise before taking action. In contrast, a more proactive approach can head off issues before they happen.
According to this report, traditional MSP revenue streams are declining as managed cloud services and other innovations drive proactive service delivery models as a key strategy to enhance customer experience and operational efficiency. This shift from a reactive to a proactive mindset is crucial for businesses looking to reduce downtime, improve efficiency and stay ahead of the competition.
2. Put Continuous Improvement in the Driver’s Seat
Unlike MSPs, which often operate within rigid service models, a more agile approach allows for ongoing optimization and innovation.
McKinsey & Company reports that companies that continuously improve their operations through agile methodologies see 30 percent gains in efficiency, customer satisfaction, employee engagement and operational performance. By prioritizing continuous improvement, you can ensure that your technology infrastructure is always aligned with your strategic goals.
3. Bring Specialized Expertise into the Mix
One key limitation of traditional MSPs is their reliance on generalized IT teams, which may lack the deep expertise needed in areas like Cloud Architecture, Security, DevOps and FinOps. As businesses face increasingly complex technology challenges, there’s a growing demand for more specialized services. In fact, 78% of MSPs are evolving their offerings to focus on areas such as cloud management, cybersecurity and automation, moving away from the reactive IT support models of the past.
Specialized expertise provides a proactive layer of support, addressing issues before they escalate and aligning technology decisions with business objectives. For example, Cloud Architects can design scalable, cost-effective infrastructure; Security Experts create robust defenses against evolving threats; and DevOps Engineers streamline processes for faster, more reliable deployments. By tapping into specialized talent, organizations can drive innovation, boost operational efficiency and better manage cloud costs, ensuring they stay competitive in today’s fast-paced environment.
4. Flex your Agility
The rigid contracts and service models of traditional MSPs stifle innovation and make it difficult to adapt to changing business needs. Innovation-driven businesses demand a flexible approach; for example, the ability to scale services up or down as business and/or market needs require (e.g, launching a new customer product).
According to this comparison of traditional vs. modern MSPs, the latter provides flexibility to scale resources based on client resourcing and innovation demands, as well as scaling to support modern workplace models (e.g., hybrid workforces vs. only in-house workers). This flexibility is critical for businesses needing to respond quickly to market changes and new opportunities.
5. Optimize Costs with a Predictable Model
MSPs often operate with variable pricing models that can lead to unpredictable costs. Modern MSPs change the game with innovations like subscription-based pricing models that offer businesses greater transparency and control over IT expenditures, helping optimize the pace of innovation vs. the costs needed to achieve this goal. This predictability allows for better financial planning and ensures that you are getting the most value from your investment.
Transitioning from a traditional MSP to a more modern, flexible approach is not just a change in service provider—it's a strategic shift that can drive your business forward. By embracing these five imperatives, you can unlock the full potential of your technology infrastructure and position your business for long-term success.
If you’re interested in learning more about alternatives to traditional MSPs, check out this approach that encompasses the five imperatives discussed here.