The managed service provider industry has steadily been growing, and according to Statista, will continue to grow in the next several years. In 2019, the market is worth 193 billion dollars and is estimated to be worth 296 billion by 2023. As businesses rely on technology more heavily to expand, the need for MSP's has become prevalent.
The MSP market is vast and specific. There are a variety of services businesses can choose to utilize, some of the most common services being:
Networking- Networking Services operate and manage the infrastructure that businesses utilize. These services can be onsite and remote, and focus IT functions such as wireless and mobile networking or managed cloud infrastructure.
Security Management- Security management covers network protection and will focus on installing anti-malware, software maintenance, and application compatibility.
Communication Services- Communication Services will help handle electronic information, such as the transmission of voice, videos, and data.
Support Services- Support Services are used often and include a variety of services, such as helping with technical support and internal operations.
Software-as-a-Service- Software-as-a-Service covers software distribution and providing host applications to customers over the internet. This can include services like Office and Google Apps.
Data Analysis- Data Analysis focuses on inspecting and modeling data so that it is easier to create and utilize network solutions.
The managed service provider models to choose from for business interested are the small business model, the mid-market model, and the cloud services. These different options make it easier for companies of all sizes to benefit from an MSP’s aid and guidance. With small businesses, for example, IT service providers will monitor a company’s business remotely. The multiple different models and uses for MSP’s make them accessible and beneficial for a business of any size to gain support.
As our need for technology grows, so does the necessity of the MSP market. Statistics show that the digital age is quickly growing- according to a report from WeAreSocial, two-thirds of the world’s population has a mobile phone. Considering how many people are online, the focus on the advancement and innovation of technology is essential. Creating, growing, and promoting a business is all done on the internet, and if a company is to gain a following, they will have a network they have to support.
It will be difficult for companies to grow in the business world without the influence of technology. According to SWC, 81% of organizations reported that IT is a strategic enabler of their business. This means that IT allows for organizations to promote their strategies of success. Utilizing all social media platforms to gain recognition is a sure way for a business to gain clients, and social media is helpful in boosting a business's reach. According to a study done by eMarketer, 44% of local businesses depend on social media to generate brand awareness. The amount of NYC managed service providers alone is endless, for example, so investing time in a strong social media presence is one way to pull in interested customers in areas with a lot of competition.
Alongside this, many IT teams report that cybersecurity is a top priority. AS IT grows, the focus on MSP’s is essential for making sure that your business’s technology runs smoothly and has consistent monitoring. As mobile devices become more affordable and accessible, businesses are focusing on utilizing social media to reach clients. In 2017, Global Market Insights reported that cyber attacks on mobile devices increased by 40%.
Threat protection and cybersecurity is an important part of why businesses are looking into MSP’s. The less susceptible your business is to a cybersecurity attack, the better. Customers like to know that the company they are investing their time and resources into has a secure website and network. Without the guarantee of security in today's age, your business is not likely to grow.
Emil Isanov, the CEO of ETech 7, said that MSP's are heading more in the direction of managed security and managed cloud. "Security is becoming increasingly important as more businesses rely on IT and more sophisticated attacks are being introduced every day. Cloud is taking over as prices are getting more competitive. It becomes more cost effective to have your environment hosted and managed by larger companies that have the advantage of economies of scale."
Cloud computing is increasingly popular among businesses, as these services allow businesses access to applications and storage of their data and information. They also help with networking and processing power. For example, the photos on your phone are stored in a cloud system, which hosts and protects data. A study by IDC showed that cloud computing spending is expected to grow at six times the rate of IT spending through 2020.
Isanov said, "Moreover, cloud providers have introduced operational efficiencies and newer technologies to improve speed, accessibility, and security. Managed IT services providers can help their clients make the transition to the cloud smoother and faster. They can also assist their clients in choosing the best cloud provider to meet their needs and select and configure the most appropriate cloud services for their respective needs."
In terms of the managed service market, North America has the highest showing because of the multitude of enterprises. While IT solutions and management are in high demand in North America, the Asia-Pacific region is supposed to grow in the coming years as well. Countries with growth in enterprises, such as China, are investing in adopting new technology for data management.
A big reason companies invest in MSP's over expanding their IT team is saving money. According to an article by Business2Community, 46% of managed IT service users have reduced the cost of their IT by at least 25%. A managed service provider can cover all the IT needs you have at a set contract rate, which could save more financially. You can choose an MSP's based on the needs of your company, which makes agreements customizable and beneficial to both parties.
Managed services have been, are, and will continue growing in the business world. These services are valuable to businesses who are growing and looking to manage all their technology needs without spending all their revenue.
If you're interested in learning more about managed service providers, check out our website or send us an email for a consultation! ETech 7 is a managed IT services provider dedicated to delivering reliable managed IT support and IT consulting to a wide range of businesses.