STATE OF THE INDUSTRY CONT .
“ We had clients who had 25 % growth this year over last year , in a market that is known to be down 5 %. They grew 25 % because they picked up work from failing competitors .” – Greg Crabtree
However , with everyone using these tools , it will be harder to differentiate , he notes .
“ The best way is to deliver a great experience and make sure you ’ re [ getting ] earned growth through referrals and repeat business in addition to “ bought growth ” through marketing and advertising ,” he says .
MSPs should seek to balance technology with relationships and human connection , he says . “ When I need to share my burden and get specific , I want that human connection .”
He also recommends removing “ employee roulette ” so that customer experience is not dependent on which technician or employee they interact with . This requires consistency of training , he says .
The AI Money Machine
Right Place , Right Time For MSPs
MSP platform vendors are all adding AI features to improve MSPs ’ internal operations like servicing tickets , invoicing , and billing , McBain says . For monetizing AI externally , though , he says adoption has been slow . “ Nobody wants to be an early adopter in this particular technology , because we got burned ... in the past with jumping on emerging tech that really never made it ,” like IoT and the Metaverse .
But over the next 10 years , he expects generative AI to usher in “ a generational shift . And 85 % of the world ’ s data sits on premises where MSPs are . So the compute , storage , networking , and edge AI opportunities over the next 10 years are going to propel this industry .”
Cybersecurity
The Cat And Mouse Game Continues
Slow progress is how Seth Robinson , vice president of industry research at CompTIA , characterizes the cybersecurity battle . One warning for MSPs , though , is that organizations are experiencing cybersecurity fatigue . “ Companies that have been investing in cybersecurity solutions are wondering what they ’ re getting with those investments . There continues to be a real tug of war between making sure that their assets are secure and they ’ re handling data properly and being responsible , on the one hand , and on the other hand , making progress and using technology to the best of their ability .”
And yet , many companies are still not following best practices , he says . For MSPs , “ the challenge is framing those best practices in terms of business value , not just cybersecurity posture .”
Organizations are also struggling with the complexity of the solutions they have in place . As MSPs look to add new solutions to their tool stack , customers may be hesitant to adopt what they may consider a niche solution . “ At some point , companies are going to want to understand the big picture . That could be a huge opportunity for MSPs .”
MSPs will also need to be aware of new attacks that are being facilitated with AI , he says . “ The complications with AI are really just part of the larger issue around cybersecurity , and I think we ’ re going to see that continuing on into 2025 .”
Overall , though , cybersecurity will continue to be a lucrative opportunity , says McBain . “[ The ] cybersecurity [ market ], which 99 % of MSPs are in , is growing . The products themselves are growing at double digits . Services are growing at 12.9 %, and managed security services are growing at 14.8 %.”
Hiring & Retention Outlook
The “ Transfer Portal ” Of Business
Experts have mixed opinions about hiring and retention opportunities and challenges for 2025 .
Growing MSPs will face two hurdles , Crabtree says : finding labor and keeping salaries in check . “ Employees have more power than they ’ ve ever had ,” he says , likening it to the college sports transfer portal , which makes it easy for athletes to transfer for more lucrative opportunities . In addition , he says , “ we ’ re coming off the four worst productivity years in the US economy because we ’ ve got a dysfunctional workforce that doesn ’ t know if they want to work in the office or work from home .”
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