By definition, managed service providers (MSPs) of 2022 should offer businesses a broad range of IT services. They are supposed to understand the technology and how it works and make it work for your business. But is it the ground reality? From our interactions with VPs, heads, and CIOs of the world, we see a sharp contrast to what an MSP should be doing. With most IT service providers offering Microsoft 365, mainly advertising the same USPs, there is a clear gap in perception between an MSP and an actual MSP. MSPs in 2022 are just resellers – reselling cloud and other services and promising it will all work together but delivering a patchwork of frustration.
We interviewed our customers, partners, and their competitors and found that most MSPs offer the same services with different packaging. Whether these services are Azure virtual desktops, Citrix Virtual Apps and desktops, or Microsoft 365, most MSPs offer these services in some shape or form. The biggest irony is that these MSPs are unique by being “your outsourced IT department” or perhaps by attempting to focus on a critical area like a cloud or cyber security. But aren’t these MSPs no more than break-fix service providers?
Yes, the stats say that the demand for managed service providers has grown exponentially. Some estimates say that 90% of Fortune 1000 companies use MSPs to provide at least part of their IT infrastructures or services. The current market was valued at $152.02 billion in 2020 and is projected to reach $274 billion by 2025. Covid-19 has also sped up the onboarding of MSPs by many businesses that were traditionally slow to embrace this concept. These companies are looking for trusted business partners in MSPs under pressure to catch up and become more effective and efficient. However, it’s not uncommon for companies to find that their MSP no longer fits the bill. What was working for a business may not be working significantly if the business has grown or changed.