Managed IT services (MITS) are projected to surge from $344 billion in 2024 to over $500 billion by 2028.
This explosive growth is driven by businesses’ increasing reliance on outsourcing critical IT functions, including cloud, IT security, IoT, big data, and infrastructure. (Source: Statista)
This article focuses on the current and future trends around MITS and explores how these trends could influence businesses’ decisions.
Trend 1: Maximizing the Use of Microsoft 365 Packages and its Low Code Solutions
Microsoft 365 is a suite of services and applications from Microsoft. Many of the concerns come from the lack of readily available guidance for managing Microsoft 365 tenants without Intune deployed. Much of the available information appears to be geared toward organizations that utilize Intune extensively.
Microsoft Intune is a Mobile Device Management (MDM) service that is part of Microsoft’s Enterprise Mobility + Security offering. It enables device management and security. Without Intune, policies cannot be applied based on a user’s device.
Here are several ways how Managed Service Providers (MSPs) can maximize the value of Microsoft 365, particularly for those Small and Medium-sized Businesses (SMBs) that may not be using more advanced features like Intune:
- Bridging the Gap in Best Practices for Non-Intune Environments: If you are only using the basic and standard licenses, you can leverage the expertise of an MSP to develop and implement best practices tailored to your needs. This involves going beyond basic branding and emphasizing the effective use of available features.
- Optimizing Tenant Configurations: MSPs can help clients organize their Microsoft 365 tenants using groups and policies to improve management and security, even without Intune. This can involve setting up appropriate groups for permissions and streamlining policy applications within the limitations of the available licenses.
- Streamlining SharePoint Management: Many SMBs may not be using SharePoint effectively. MSPs can help organize file storage and permissions correctly, potentially migrating away from inefficient per-user setups to group-based permissions. They can also educate clients on the appropriate use of SharePoint, including its limitations regarding large file sizes and bandwidth, preventing issues like those experienced by the client storing everything on SharePoint.
- Here are more ways how an MSP can help you maximize your Microsoft 365 investment. (Link to “How MSPs can help clients maximize their Microsoft 365 investment”)
Trend 2: Integrating AI with Managed Services
The overarching theme of this trend is the shift towards AI-powered automation of routine tasks and augmentation of human capabilities, rather than a complete replacement of human technicians in the immediate future.
Here’s how AI is envisioned to shape the future of MSPs:
- Predictive and Preventative Services: Some envision AI tools analyzing customer infrastructure to predict potential issues with a certain accuracy. This enables MSPs to offer proactive solutions to prevent downtime, essentially shifting from a reactive to a proactive IT service delivery model with features like self-healing endpoints and AI-enabled threat detection.
- Automation of Support Tickets and Routine Tasks: AI is envisioned to autonomously handle support tickets, potentially even following them to resolution without human intervention, such as in the scenario of installing a printer. This includes steps like identifying missing information, leveraging RMM platforms to gather details about the user’s environment, suggesting solutions, deploying software, and confirming resolution. AI is expected to take on low-to-medium complexity and time-intensive actions.
- Empowering Technicians: The prevailing sentiment is that AI will serve as a tool to liberate technicians from manual and routine tasks, allowing them to concentrate on more complex issues, troubleshooting, and strategic initiatives. Technicians can also prioritize direct customer interactions that require expertise and contextual understanding. The focus is not on replacing the human element but on enhancing AI with human involvement capabilities.
- Improved Data Analytics and Threat Detection: AI is expected to be an indispensable tool for data analytics, identifying patterns across large datasets to improve threat detection, spam, and phishing management, and predict potential failures.
Limitations of AI: It’s important to note several challenges regarding the use of AI:
- Challenges that need on-site visit. AI currently lacks the ability to contextualize complex real-world issues. Some IT issues still require a human visit.
- Customer Acceptance and Trust: There are doubts about whether customers will be willing to rely solely on AI for support, especially when they prefer to talk to a human for troubleshooting.
- Cost Considerations: The cost of implementing and maintaining sophisticated AI solutions might be a barrier, especially if customers are unwilling to pay significantly more for AI-driven services compared to traditional support.
The Human Element Remains Crucial: Expertise, troubleshooting complex issues, and customer interaction are areas where human technicians will still be needed. The future is seen more as augmentation rather than complete replacement.
Trend 3: Advanced Cybersecurity Solutions
A significant MSP trend is the increasing demand for cloud security, particularly concerning platforms like Azure.
This indicates that businesses are recognizing the importance of securing their cloud environments and are seeking expertise in this area, and one of the reasons is the resurgence and sophistication of ransomware.
The number of ransomware victims globally increased by 59% in 2024. As threats evolve, organizations must implement and consider the cloud while ensuring security protocols are in place to protect against data ransom.
Here’s how MITS providers are implementing advanced security solutions:
- Zero Trust Security operates on the principle of never trusting any user or system by default, regardless of its location within or outside the network perimeter. This concept is gaining traction as organizations recognize the need for continuous validation of user identities and device integrity to mitigate modern cyber threats.
- Multi-Factor Authentication (MFA). Users frequently ask MSPs to help them fill in and set up their own MFA. This suggests that while users might understand the need for MFA, they often require assistance with its implementation. Simply turning MFA on might not be enough, and there are concerns about effectively tracking and preventing illicit logins even with MFA in place. MSPs are crucial in guiding and assisting users with MFA setup.
- Compliance. While mentioned as a broad trend, organizations are looking to leverage their existing security tools to meet compliance requirements. Compliance and governance features within SharePoint have their inherent complexity, which have makes MSP services necessary.
- Endpoint Detection and Response (EDR): By deploying EDR solutions, providers can monitor, detect, and respond to security threats in real-time. This technology enables them to manage incidents effectively, minimizing the risk of data breaches and ensuring quicker recovery times.
Compliance with regulations is crucial in maintaining trust and safeguarding sensitive information. Data privacy ensures that personal data is handled responsibly and protects individuals from potential breaches. Ultimately, it protects and enhances the reputation of the business.
Trend 4: Compliance
- Customers are increasingly seeking assistance with meeting compliance requirements. This demand isn’t always solely focused on security but rather on leveraging existing tools and technologies to satisfy specific regulations.
- A key aspect of this trend is helping organizations utilize their current security investments for compliance purposes. For example, a customer might have Microsoft 365 E5 licensing with MFA enabled but needs guidance on implementing features like Purview to achieve data governance and compliance.
- However, there are challenges associated with this trend. Some in the industry express concern that not all MSPs have the necessary expertise and staffing to properly adhere to complex compliance regulations. This suggests that while the demand for compliance assistance is growing, the ability of all MSPs to effectively deliver on this need might vary.
Overall, the MSP industry is navigating a complex environment where customer needs are evolving towards greater security and compliance. MSPs are tasked with not only implementing trending technologies but also ensuring they provide tangible security value and expert guidance in navigating increasingly intricate regulatory landscapes. The balance between adopting new solutions, focusing on fundamental security principles, and addressing cost sensitivities will be crucial for MSPs in the coming years.
