The trend of digital transformation is one of the fastest growing business strategies out there today, with innovative technology seeping into virtually every enterprise, regardless of industry or vertical. One industry that has greatly benefited from the rise of digital transformation is the managed service provider (MSP) industry.
With digitalization sweeping across various industries at a rapid rate, MSPs are valuable extensions of enterprise IT teams. In some cases, the MSP serves as a virtual IT team, helping to ensure IT operations run smoothly and successfully.
No longer simply “resellers,” successful MSPs are constantly aware of the latest technology and telecom approaches – from the cloud to the network and the edge, and from every application to every managed device and endpoint.
The global managed services market size was valued at $239.71 billion USD in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.4 percent from 2022 to 2030. In comparison to overall IT services, Gartner predicts the MSP market to grow at three times the rate in 2022 alone.
However, for all that digital transformation has done for MSPs, it hasn’t been without its drawbacks.
MSPs today face the challenge of needing to be able to offer a wide range of services to meet the needs of clients, and to be at the forefront of technology. The stress associated with handling high-level technical problems for a variety of customers has created problems for MSPs in profitability and customer satisfaction.
For these reasons, many MSPs offering various IT services often cannot handle everything on their own.
In fact, roughly two-thirds (68 percent) of MSPs today grapple to maintain profitability, stemming from having to deal with unexpected issues at any moment. This can have a strain on client relationships and a financial impact for MSPs, making it harder to maintain revenue growth.
Furthermore, customer satisfaction problems affect customer retention, which is a point of priority for many MSPs. Retention figures are the main measure of success for 43 percent of MSPs, with 41 percent relying on client satisfaction surveys to assess how well their business is performing.
While new technology has given MSPs new hurdles in offering their services, the adoption and implementation of technology can also aid MSPs in their strive for optimization. MSPs may rely on numerous customized devices and applications designed specifically to manage the complete IT infrastructures of all their clients. These tools help MSPs obtain higher levels of optimization through the streamlining of management, monitoring, and even provisioning.
For example, professional service automation (PSA) tools can help MSPs automate routine tasks like billing, reporting, and schedule management. While many MSPs rely on specialized tools for invoicing, scheduling, time tracking, resource planning and business intelligence, a PSA solution combines them into a single platform, simplifying administration and decreasing costs. By automating routine tasks like data entry and billing, the solution can improve efficiency and boost productivity.
Remote monitoring and management (RMM) have also become common for MSPs to leverage. RMM supports management of client IT systems like desktops, laptops, mobile devices, and services, and the tools help administrators automate standard managed IT functions, improve visibility into client machines, respond to threats, and streamline tasks.
Pax8 continues to grow exponentially because we bring MSPs huge advantages with our integrated platform, designed to remove complexity and cost while delivering customers a high-quality experience.
Better experiences mean more customers.
At Pax8, we realize the abundance of challenges that face the MSP industry and understand that while digital tools can help ease the burden, finding the right tools for a company’s unique needs is no easy task. That’s why at Pax8, we aim to simplify work for MSPs, providing support for everything from daily processes to selling and managing solutions.
Our consolidated billing, automated provisioning, and industry-leading PSA integrations all modernize the channel’s cloud journey. And our technology is backed by 24/7 support, deep expertise, and the educational resources you need to grow your cloud business.
Our team of cloud engineers will assess your unique needs and objectives to design and implement a custom solution. Our wheelhouse for custom projects covers everything from Azure consulting to networking and security services, all the way to IaaS deployments and migrations.
With technological innovation only set to continue, keeping current with modern devices and applications will be crucial for MSPs who look to remain competitive in the coming digital age. Pax8 can help MSPs attain the levels of optimization they desire, allowing them to live up to their fullest potential, and reward customers with premium, profitable services.
Sign up to become a partner to see exactly how our award-winning company and platform are fueling success for over 25,000 MSPs worldwide.