Ingram Micro Cloud, operator of the world’s largest cloud marketplace for the channel, has recently released an all new annual report aimed at examining the cloud marketplace from a perspective benefiting Managed Service Providers (MSPs) and technology resellers.
Cloud Technology: The State of MSPs Report analyzes prescient trends in the cloud consulting and reselling industry, including key barriers and weaknesses that MSPs need to be aware of in order to take advantage of emerging opportunities.
The report draws its insights from Ingram Micro Cloud’s vast partner network and input from over 600 MSPs with help from global technology market research experts Vanson Bourne. The report’s prescience comes from the fact that we are currently living through the greatest transformational shift in the history of cloud computing, so it’s revelations are excellently suited to benefit resellers and MSPs as they navigate today’s constantly evolving business landscape.
One of the most interesting takeaways the report provides is the recommendation that channel partners make the pivot from their current service provider role to a more active strategic advisory position to their customers.
As advisors, MSPs would then be tasked with identifying the most popular services suited to each particular customer, and provide consultation on how that particular business could maximize their current use of cloud in order to be best suited for what might lie ahead. According to the report, over the past 12 months, the top 3 services that generated the most revenue were: Cloud Services (SaaS, IaaS, PaaS) (22%), Managed Security (19%), and Internal IT Department (17%).
“From interviewing over 600 MSPs, it’s remarkable to see how 90% of service providers have seen client demand for managed services grow in the past 12 months,” said Craig Weir, executive director, global SaaS portfolio at Ingram Micro Cloud.
“Close to two in three individuals surveyed say a lot of improvement is needed if their organization is going to be able to adapt to future opportunities,” he added.
After combing through the data, Weir believes that some MSPs have found a way to scale their businesses and accelerate growth, although he sees that many MSPs are stuck at a digital impasse of knowing where they should go, but unsure as to what the first step to get there might be. The report aims at helping MSPs stuck at a digital inflection point make the right decision.
In addition to advice on how to make the transition into cloud consulting, the report also offers insights on how MSPs are handling surging client demand and dramatic levels of growth, the top reasons why organizations look to outsource their IT operations, the most common managed services requested by clients, that MSPs believe to be the greatest opportunities in the marketplace right now, and the challenges most likely to keep senior decision makers up at night.
Given that the report reveals how the global managed services market is predicted to rise from $243 billion in 2021 to $557 billion in 2028, at a CAGR of 12.6%, this is strongly indicative of big opportunities ahead for MSPs who take notice and develop a stronger cloud business plan. One thing is clear: it’s a great time to be an MSP.
Disclosure: This article mentions a client of an Espacio portfolio company.