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managed services trends

8 Managed Services Trends that’s Changing the MSP Industry

With the rise in remote working globally, there is an increase in demand for managed services especially among the SMEs. More and more SMEs are moving towards cloud technologies in order to curb down infrastructure and operational costs. And hence, the demand for MSPs in the UK has increased significantly in the last few years that can offer end-to-end managed IT services.

Key Facts and Statistics about the Managed Services Industry

  • The global managed services market was valued at 161.37 billion U.S. dollars in 2021. Overall, the global managed services market is expected to exceed 300 billion U.S. dollars by 2027.
  • The global managed services market is expected to reach USD 731.08 billion by 2030, according to a new study conducted by Grand View Research, Inc
  • The global managed services market is expected to register a CAGR of 12.44% for the period 2020-2027.
  • The largest market is North America, while the fastest growing market is Asia Pacific. 
  • The European managed services market was valued at USD 88.57 billion in 2020, and it is projected to be worth USD 196.61 billion by 2026, registering a CAGR of 14.1% during the period of 2021 – 2026.
  • According to Datto, on average, MSPs report a client base of 122 clients, and about 60% of the MSP’s clients have between 1-150 employees; also, only 5% of the MSPs reported clients with over 500 employees.
  • About 68% of the SMBs in Europe agreed to have improved their bottom line with the help of managed services that include lowering IT costs, provision of performance predictability, user experience and cost and maintenance of the lean business environment.
  • It is estimated that successfully deploying managed services will help reduce IT cost by 25-45% and increase operational efficiency by 45-65%.


Be familiar with these 8 latest MSP trends to help your business grow and be competitive.

1) Cloud Based Services & Automation

Cloud computing was very popular even before Covid-19 pandemic, however it has become more like a need for every business today after the introduction of remote work. 

Cloud based services and solutions ensured organisations to maintain business continuity and restore everything back to normal despite concerns about data security, privacy and connectivity.

Almost every MSP today is offering cloud-based services and solutions as more and more businesses are migrating from on-premise to cloud. They even make sure that you are not only paying less but ensure optimum usage of your infrastructure to yield better profit margins, improved operational efficiency and faster time to market with the help of automation.

Automation eliminates human intervention for routine tasks and helps to keep your resources free from unnecessary rework, which in turn enables you to deliver a better customer experience.

2) Internet of Things (IoT) & Blockchain

IoT and Blockchain are the most important digital transformation technologies in 2022 that MSPs cannot ignore. 

IoT enabled solutions helped businesses to increase productivity of their remote workers during the Covid-19 pandemic. This led to a bigger challenge of data security due to the large number of connected devices growing multifold every year. 

Here is where Blockchain comes into play and helps in improving data security and privacy of IoT devices, platforms and applications.

The IoT and blockchain convergence protects IoT devices from security vulnerabilities due to the decentralised nature of blockchain technology and offers numerous advantages and opportunities.

Businesses leveraging these two emerging technologies will need specialised IT support. So, having proficiency with IoT & Blockchain will help MSPs offer managed IT services around these technologies and successfully implement them.

3) Artificial Intelligence (AI) / ML

There is a high demand of MSPs in SMBs with the rise in cloud adoption due to Covid-19 pandemic, looking to streamline processes and gain a competitive advantage.

Using cloud-based technologies in combination with AI and ML will help automate routine processes and streamline workloads allowing businesses to innovate faster, better, and cheaper.

AI delivers a great customer experience which is one of the key goals for any MSPs. So, it’s important for MSP to provide AI/ML solutions to analyse big data and deliver better customer experience with actionable insights.

4) Data-Driven Customer Service

As a MSP, it’s also important to understand the importance of customer service. Clear communication, managing client’s expectations, following procedures / guidelines and customer satisfaction are key for delivering a great customer service.

It’s a responsibility for an MSP to make their customers feel that they are in safe hands and rely upon. By implementing data-driven customer services will enable MSP to analyse and organise data with a goal to deliver a great customer experience. Also, it will help to identify any red flags in customer service and resolve before customer churn.

5) Hyper Converged Infrastructure

Any IT infrastructure could be traditional, cloud or hyper converged infrastructure which broadly consists of hardware, software and networking. 

Hyper Converged Infrastructure (HCI) is a growing trend that has only been accelerated by the pandemic. It’s a software-defined IT infrastructure that combines the elements of storage, compute, network and management into a single platform. The key advantages of HCI are that it reduces complexity, easier to troubleshoot and provides advanced data protection and disaster recovery.

So it is in the best interests of MSPs to expand their capabilities to grow their customer base and safely migrate them to HCI.

6) CIO as a Service

Nowadays there are some MSPs that also offer CIO as a Service (aka Virtual CIO, vCIO or Fractional CIO) to SMEs that cannot afford a full-time CIO. The role of CIO is exactly the same as any appointed CIO for a given company. 

They help create and manage your IT strategy, improve / optimise / automate the processes and technologies, oversee IT budget and operations etc to facilitate better growth, gain more efficiency and increase profits.   

Key benefits of CIO as a Service:

  • Cost-effective pay-as-you-go service
  • Offer flexible and scalable engagement
  • Access to forward-thinking IT leadership on-demand
  • Reduces overall IT expenditure

7) Multi-Cloud Management

The demand for multi-cloud architecture is growing every passing year. In multi-cloud strategy, businesses make use of two or more public cloud platforms to provide better services, more storage and gain more business. A multi-cloud approach gives room for innovation and addresses the limitations of using a single cloud. 

With this approach there is no vendor lock-in allowing businesses to take advantage of different cloud service providers.

It’s mostly MSPs that take care of SMBs cloud environments and it’s a right opportunity for them to build their capabilities and offer services for a multi-cloud platform and not restricting to single cloud.

8) Enhanced Cyber Security

Security has always been one of the top concerns for any business. That’s the reason why most SMBs look to hire MSP as they can ensure around the clock monitoring of your IT infrastructure, protect your enterprise data and lower the risk of a cyber-security incident or breach.

Many MSPs these days offer fully managed cyber security services to provide business with most comprehensive & enhanced security at cost-effective rates.