In 2017, the MSP market was valued at $155.91 billion. This year, it’s expected to nearly double, reaching $296.38 billion, with continued growth projected in the coming years. As a managed services provider, we at Teal frequently get asked about the trends fueling this rapid expansion. Businesses seeking this insight are eager to adopt the latest tools and strategies to gain a competitive edge.
Much like the previous year, the top MSP trends in 2021 have been shaped by the ongoing global shift to remote work, as organizations across industries continue to navigate the challenges brought on by the pandemic.
Table of Contents
MSP Trends to Watch
1. Cloud Migration
As impressive as the growth rate of the MSP market may be, it’s easily overshadowed by the worldwide end-user spending on public cloud services. These services are forecast to grow 23.1 percent in 2021 to a total of $332.3 billion, up from $270 billion in 2020.
Since the outbreak of the pandemic, cloud services have enabled organizations to rely less on their in-house IT infrastructure. This has made it easier for employees to seamlessly work from various remote locations using a mix of personal and work devices.
It’s estimated that the average organization now has 110 software as a service (SaaS) applications, which is almost 10 times as many compared with 2016. Besides SaaS applications, some cloud-progressive organizations have moved parts of their physical IT infrastructure to the cloud using infrastructure as a service (IaaS) solutions like Amazon Web Services (AWS) or Microsoft Azure.
Regardless of how much of their IT environments organizations migrate to the cloud, the benefits they enjoy are always the same, including:
- Reduced IT costs
- Increased collaboration
- Efficiency
- Flexible scalability
To unlock all its benefits, it’s important to choose the right cloud vendors and avoid common cloud migration mistakes. An MSP can help with both.
2. Edge Security
Back when most small and medium-sized organizations relied primarily on in-house IT resources, and the hybrid work model was not as common as it is today, MSPs focused largely on traditional perimeter defense. They created an impenetrable wall around employees’ desktop computers, fax machines, and networking equipment using tools like firewalls.
This approach to cybersecurity has served organizations well for a long time, but the pandemic’s disruption of established work routines has revealed its limitations. Now that the network perimeter is blurred beyond recognition (because employees access cloud services from remote locations more) traditional perimeter-based network defense is obsolete.
MSPs are responding to the challenges created by the new cybersecurity landscape by shifting their attention to edge security.
Instead of building one large wall to protect all endpoints that are surrounded by it, MSPs are now fortifying individual endpoints so they can resist threats regardless of their location.
Some of the most effective edge security best practices include:
- Multi-factor authentication
- In-transit and at-rest encryption
- Strict VPN access policies
- Automated patching
- Constant monitoring
Implementing these and other cybersecurity best practices is now easier than ever. Affordable endpoint protection solutions can be quickly deployed across desktops, laptops, and mobile devices.
Plus, with a convenient web-based admin interface, businesses can manage and control security remotely with minimal effort.
3. IT Talent Shortage
Much like large enterprises, SMBs now depend on information technology for running daily operations, making its ongoing maintenance critically important. In the past, finding an IT person to keep computers computing, printers printing, and network equipment networking was neither too difficult nor too expensive.
Smaller organizations could often get away with hiring a young system administrator without much experience because their IT environments weren’t nearly as complex as they are now. What’s more, cybercriminals used to consider SMBs to not be worth the time and effort it takes to launch a targeted attack. So, basic cybersecurity protections – such as spam filtering and virus scanning – were enough to keep cybersecurity threats at bay.
Today, it’s virtually impossible for a single system administrator to handle day-to-day IT issues cloud management, endpoint security, mobile device management, and much more. Because of the ongoing IT talent shortage, the cost of recruiting an in-house IT team has become prohibitively high even for financially healthy medium-sized organizations.
Unlock the secrets to successfully hiring IT professionals for your small business. Quickly navigate the challenges of identifying the right candidates to support and grow your business effectively.
That’s why the demand for managed services providers is the highest it has ever been. By outsourcing their IT needs, organizations get to enjoy many benefits MSPs provide, including:
- Access to top IT experts
- Cutting-edge IT solutions
- Predictable and scalable spending
- A single point of contact for vendors
- And many other benefits
MSPs Keep You Competitive
As technology evolves, MSPs are consistently at the forefront, anticipating the next big shift. Whether it’s advancements in cloud computing, emerging cybersecurity threats, or the latest in AI and automation, MSPs are always prepared to help businesses stay ahead of the curve.
At Teal, we pride ourselves on being responsive and proactive. We continuously adopt new technologies, like Microsoft Copilot, and refine our strategies to ensure we’re ready to tackle future challenges.
Our commitment to staying ahead allows us to provide our clients with the most up-to-date solutions, ensuring their success in an ever-changing digital landscape.
Contact us today to discover if we’re the right partner to keep your business competitive.
