Where is the Managed Service Provider ecosystem heading and what's in it for you?

Isabella Mysicka Oct 6, 2017
Where is the Managed Service Provider ecosystem heading and what's in it for you?

Who are the leading providers?

Managed service providers are now an important requirement for many businesses worldwide. A managed service provider (MSP) manages a company’s server, network and IT infrastructure and can generally provide help or advice based on what is best for clients. With the tech market constantly changing and the MSP ecosystem advancing all the time, it’s important for providers to keep up to date with the latest trends in order to allow customers the use of the best possible solutions. This includes the provision of cloud computing which is continuing to grow year on year, with more companies switching IT operations over to cloud-based models.

MSPs provide companies with differing levels of service, focusing on different aspects and can be tailored to a business’s individual needs. Amazon Web Services (AWS) and Azure are great examples of companies that are constantly looking to advance within the marketplace and have been known to provide the best possible solutions.

AWS is a secure cloud platform that provides clients with content delivery, database storage and a variety of functionalities to ensure that businesses continue to grow. Azure works in a very similar way and focuses on applications, allowing software builders and IT professionals to access the tools that they need to enhance all aspects of their apps.  

AWS and Azure are two providers that keep well up to date with the latest trends, but what are the current trends that you should be looking for when it comes to implementing a service provider?

deciding on service provider when implementing MSP ecosystem

Innovative market trends

So, there are a number of hot trends that currently stand out within the industry and these include: 

  1. Serverless computing

    This is a new (and highly anticipated) phenomenon that allows developers to “deploy and run code on demand, without having to maintain a backend server at all”. This is quite different from what has previously been available, because if you were to run an app with a particular cloud provider, you would still have to manage the server to ensure it is running smoothly. Now, all that is required is uploading the code to the server and you can then decide when you want to use a particular app. This is much simpler and is often available on a “pay as you use” basis, which, of course, is a lot cheaper.
  2. Peer to peer collaboration

    As mentioned above, companies are always looking for bespoke solutions from providers. Peer to peer collaboration is a way to allow this, with vendors or providers working together, meaning that many of the solutions are “custom assembled” for each individual client. These new and improved solutions therefore benefit clients much more and hope to present them with fewer issues. For example, at Nine Internet Solutions, we have achieved success following our partnerships with AWS and the NZZ Media Group.
  3. Looking for value

    As the market continues to grow in value, customers are beginning to shop around for value when looking into MSPs. Partnerships are beginning to advance so that, instead of previously available rebates, customers are now more beneficially rewarded by the providers. This is done by offering constant expertise and continued engagement. Providers now need to be seen as beneficial and insightful, rather than simply selling a product.

different trends in IT: serverless computing, peer to peer collaboration, looking for value

Are service providers really relevant?

Service providers are an increasingly important cog within the IT industry today and the services they provide are easier to understand. However, this wasn’t always the case. The outsourcing of any IT services was previously not seen as useful or beneficial to a business and there was more of a “why can’t we do this in house?” attitude. Well, with the continued growth of cloud services, providers have become much more relevant to businesses worldwide. Cloud computing now means that resources are available on-demand, can be either up-scaled or down-scaled easily and, as mentioned above, users can now be charged for their exact usage, which ensures that they are saving a significant amount of money and gaining a high quality service.

But, if all MSP and cloud providers are doing this, what sets AWS and Azure apart from the competition?

AWS and Azure - worthy market leaders

Gartner has predicted that by 2019, AWS and Microsoft Azure will oust 90% of other cloud IaaS providers. Firstly, this is down to the pricing of the solutions that these two companies provide. They are able to provide a cost-efficient and much more affordable option in comparison with some of the other vendors. Secondly, the solutions that AWS and Azure provide are a lot more advanced than those that other vendors can offer. They are often a step ahead of the rest of the market and if businesses are looking for the best solutions at an affordable price, then choosing AWS or AZURE is a no brainer!

The value of MSPs

The MSP market and ecosystem is continuing to grow year on year, in terms of the market worth, however, providers are expected to reduce considerably. Although this will mean a less competitive market place, it’s important to look at why this has happened. It points to the fact that AWS and Azure provide much better and more cost-efficient solutions in comparison with many of the other providers and are always up to date with the latest trends. It’s therefore vital to look at how different MSPs and can benefit you and which holistic options are out there. And you may often find that AWS or Azure offers the most beneficial solution.

Cloud computing is now fairly mainstream, with AWS and Azure dominating the market. But there is a wide range of products and services on offer and infinite scaling possibilities, so managing this requires time and expertise. For example, AWS and Azure do not provide the management of instances – customers are supplied with information and tutorials, but are essentially on their own. If problems occur during operation, AWS and Azure do not remedy them on their own initiative, but rather only when informed by the customer that something is amiss.

MSPs select, configure and efficiently manage the right combination of cloud services for you. At Nine Internet Solutions, with our advice, support and the migration of your application and workloads to the cloud, you’ll get the perfect set-up.
Ultimately, the very complexity of a hyper scale provider, such as AWS or Azure is only possible with the help of a MSP.
If you want to chat further about MSPs or cloud computing, please get in touch.

PS: Did you like this post? We would be pleased to count you among our readers soon. Let us know if you have any questions, comments, suggestions or wishes - we are looking forward to your input!

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