There hasn’t been a better time for MSPs than now, given the shift to remote and hybrid working, combined with a general need for companies, including SMBs, to not only keep up with advanced IT solutions, but to compete based on delivering better experiences to their customers.
Organizations are turning to MSPs to manage not only basic applications like email and voice, but more advanced applications, from deploying mission-critical systems to supporting IoT solutions, including smart buildings, factories and more.
This has added to the pressure for MSPs to ensure they have all the tools in place to be able to serve and protect their customers, which is driving increased interest in cybersecurity solutions, as every cloud-delivered application is now vulnerable to cyberattacks.
“We are, in fact, living in a golden age for MSPs,” said Nick Heddy, Chief Commerce Officer of Pax8, one of the fastest growing e-commerce platforms offering cloud-first solutions to MSPs. “Not every MSP is growing, because competition can be fierce, and adding new services can be complicated and risky. MSPs are highly focused on what it will take to succeed, for sustained growth, increased revenues, and more predictable profitability, so they can re-invest in broadening their offerings.”
Heddy said one of the most important areas for Pax8 is cybersecurity, given the impact even just one cyberattack can have on and MSP or their small or medium-size business client.
"We predict that SMB security spending via MSPs will grow from $25 billion in 2022 to $48 billion in 2027, at a CAGR of 14%,” said Analysys Mason, adding that “Small and medium-sized business (SMBs) continue to show strong demand for cyber security services, and many report a desire to purchase security solutions from their trusted managed service providers (MSPs).”
Their report also revealed that many MSPs lack the expertise to provide full-scale security to clients and suggested that rolling out cybersecurity is an important way for MSPs to bolster their security credentials, while also benefiting themselves. Already, 30% of SMBs have purchased at least some of their cybersecurity solutions via MSPs.
“We’ve been focusing on cybersecurity as a key differentiator for the MSP partners we serve by bringing them quality vendor solutions through our Pax8 Marketplace,” Heddy said. “We are also investing in education and training programs, given that the combination of cloud-first solutions and a lack of experience in cybersecurity can give some MSPs pause, given their history of a simpler model, as value-added resellers and managers of hardware and network infrastructure rather than cloud. We are proud to help tens of thousands of MSPs cross the chasm to cloud, then build strength in cloud- first solutions, which are ultimately more affordable for their customers, and profitable for them.”
Cybersecurity will be a focus of Pax8’s inaugural partner event, Beyond 2023, which will be June 11-13 in Denver. Sessions include such topics as creating a culture of security and mitigating security threats.
Many MSPs are not able provide the full scope of security that their customers need, despite the growth opportunity, and begin with basic solutions including anti-virus and email protection, Heddy explained. “Supporting more sophisticated cybersecurity solutions is new and often daunting territory for these MSPs because managing security is a very different beast. That said, MSPs are at risk if they don’t focus on this need, especially given how much their customers trust them. If a competitor offers a full cybersecurity solution, customers may jump ship.”
Heddy cautioned that MSPs should not wait for a cyberattack to happen and should instead “protect and grow their business starting with a strong security culture, because every cloud-based application can be compromised today, from VMs to browsers.”
Edited by
Erik Linask
