Guest Column | March 23, 2017

10 Reasons Why The Managed Services Market Is Flourishing

By David Molnar, CEO, Dave's Computers And ASCII Group Member Since 2014

In recent years, the managed services market has exploded to unprecedented proportions. Thanks to a changing security climate and increased focus on convenience and scalability, more people are using managed services today than ever before. Following are the top 10 reasons for this trend.

  1. The Exploding Popularity Of Cloud

While the cloud was once an unknown entity, companies are now adopting cloud solutions en masse. Thanks to benefits such as cost savings, scalability, mobility, and simplicity, enterprises and small businesses across all industries are eager to integrate cloud applications. Since this requires technical know-how, they’re not making the switch by themselves. Instead, these companies and individuals are turning to managed service providers (MSPs). This reliance on MSPs boosts the industry and helps support its upward mobility.

  1. The Increasing Complexity Of IT

While businesses owners know tech is integral to success, the technology industry is fluid and non-linear and people who don’t specialize in it have a hard time keeping up. This is particularly true for small businesses trying to manage many technologies all at once. In 2016,75 percent of IT service providers were planning to add services to their portfolio. This expansion of services represents more options for clients, making it easier for the managed services market to meet consumer needs — even in a changing technological environment.

  1. Consumers Are Security Sensitive

In recent years, customers have watched large, multinational companies around the globe fall victim to major data breaches that cost millions in lost files and repair costs. Today, consumers ranging from enterprise-level companies to individuals and small business owners need help ensuring the security of their data, and they know it. This focus on security provides the perfect opportunity for MSPs to establish security protocols ranging from spam filtering to email security, which can then be tailored to a variety of industries.

  1. Scalability Is Essential

Before the managed services industry grew to its current proportions, customers who wanted to grow their businesses had to contend with difficult, expensive, non-user friendly systems with a high error rate. Today, however, the managed services industry makes it easy for companies in all industries to scale their operations quickly, efficiently, and affordably, without much back-and-forth.

  1. Internal Threat Detection Tools Have Boosted Security Even Further

Even the best MSP network isn’t foolproof. Fortunately, tech companies across the globe are working to release tools that make it easier for MSPs to identify internal threats placing their clients’ networks at risk. Powered by machine-learning, these tools scan a company’s network for malicious, suspicious, or unexpected behavior or changes. Equipped with the ability to send MSPs daily emails that break down the state of their systems, these tools make managing and avoiding threats and breaches easier and less expensive.

  1. HIPPA-Compliance Tools Are Standard In Healthcare MSPs

Today, MSPs who work with healthcare practices have access to tools that help them perform federal HIPPA audits, making it easier than ever before for MSPs to achieve and maintain HIPPA-compliance. It also serves to decrease the cost for healthcare practices using managed services vendors and provides perks such as incident response management and built-in training programs.

  1. MSPs Don’t Replace Internal IT Departments

While many people think of MSPs as replacements to an internal IT department, one of the reasons the managed service provider industry is booming is it seeks to enhance rather than replace internal IT. In most cases, companies who adopt MSPs don’t replace their IT staff. Instead, partnering with an MSP just allows them to re-allocate IT resources more efficiently.

  1. MSPs Offer More Efficiency Than Internal IT Departments

Today, most companies don’t want to “touch the metal” of their systems. Fortunately, MSPs can handle a company’s data more efficiently and reliably than an in-house IT department, which is attractive for enterprises of all shapes and sizes.

  1. MSPs Offer Enhanced Predictability

With an MSP, companies get predictable prices and flat fees. Contracts clearly lay out the terms of service and the company hiring the MSP knows what to expect and when. This makes IT easier to access and more manageable, especially for busy founders who are focusing on many different tasks and responsibilities at once.

  1. MSPs Take A Proactive Approach To Tech Infrastructure

For founders and IT managers who are sick of putting out fires, an MSP is a great option. Built to proactively identify and address tech issues, MSPs make it easier for companies to avoid glitches and respond swiftly when they do happen. This proactive approach also saves time and money.

The Future Of The Managed Services Industry

Much more than a passing trend, the increase in popularity of MSPs is a direct response to a changing security climate, an enhanced willingness to outsource, and a focus on business concerns like scalability, security, and accessibility. While many other industries have tried to address these challenges, the managed services market is the only one to have done it successfully.