SMBs’ Technology Reliance Presents Huge Opportunities for MSPs
AI-based solutions. Nearly two-thirds (60%) of SMBs are planning to invest in automation, 32% will invest in data science and analytics, and 24% are going to put money into AI and machine learning.
The non-technical SMBs pursuing these new paths will need plenty of guidance and handholding to create a positive return on investment. Since these are net-new technologies rather than the next generation of a previous solution, MSPs will once again have to educate and steer their clients toward practical and valuable choices.
Shrinking budgets
While investments in IT kept savvy SMBs up and running, they didn’t completely protect them from the major financial losses sustained by many organizations. As revenues slumped and unexpected expenses appeared, the balance sheets for many corporations are looking shaky.
This is creating downward pressure on IT departments who are being asked to cut costs and look for savings opportunities just like their colleagues running other parts of the company. More than one-third (34%) of IT leaders say budget cuts are their biggest challenge this year, making this conundrum both a blessing and a curse for MSPs.
Many respondents reduced IT headcount and are outsourcing more IT services to save money. Some SMBs may offload even more responsibility onto their MSP partners, leading to an increase in MRR. At the same time, companies may cut services deemed non-essential and slim down their headcount, creating fewer endpoints to manage and SaaS seats.
No one knows exactly how it will all shake out, but it’s prudent for MSPs to connect with their customers to take their temperature and see whether there’s opportunity or danger on the horizon. A strong ROI and clear value proposition are more important than ever, as every penny spent will be scrutinized more closely than before.
Adding value at an attractive price point
For MSPs navigating this uncertain landscape, the ability to offer a broad portfolio of outsourced IT services at an affordable price point may be the difference between those that thrive and those that barely survive the lean years ahead. Of course, one way MSPs can lower costs is standardizing on a common platform that allows them to offer a wide range of solutions without increasing headcount, fixed costs or investing in a ton of employee training.
Using a purpose-built platform for MSPs that supports everything their clients might request is a scalable approach to growth. Learn more about the SMB trends MSPs must capitalize on as they approach 2021.
Jim Lippie is GM & SVP Partner Development, Kaseya.
This guest blog is part of a Channel Futures sponsorship.
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