The managed service provider (MSP) industry offers an abundance of support both online and in person. MSPs are, after all, integral parts of modern IT infrastructures. In addition, there are numerous ways to connect with other MSPs for tips and tricks to assist in building your business. Generally, MSPs are happy to share success stories and industry trend but rarely speak out about the challenges they face.
1. Generalist MSPs
Advances in technology are often specific to certain industries. This means that, for example, a restaurant, hospital and consulting firm will all have vastly different network demands with the accompanying challenges for MSPs to manage. As more than half of MSPs’ specialize in a particular industry, generalist MSPs are finding competing increasingly hard.
2. Finding and recruiting the right talent
With unemployment in the IT sector hitting rock-bottom, securing the right talent is currently a big challenge for MSPs. As John Davenjay, CEO of MSP staffing firm Bowman Williams explains: “The biggest pain point when it comes to staffing in the 2019 channel is being able to successfully attract and hire the top talent that has both of the ‘holy grail’ job requirements; a pristine client-facing presentation/communication style coupled with a well-rounded SMB technology skill set.”
Growth, however essential for your organization, can also present a challenge, especially for MSPs. When MSPs add new technology and products to their offering to drive growth, their time and resources are frequently stretched to the limit. This means revisiting operational structure as it can be difficult to roll out these changes without a decline in operational efficiency. Considering the critical space of IT infrastructure, it only takes one mistake for a customer to lose faith in an MSP’s abilities.
4. IoT is booming rendering it hard to manage
Intel estimates that by 2020, 200 billion IoT devices will be added to our networks. This is an increase of 1 223% from 2015. As if the sheer number of devices is aren’t overwhelming enough, the real problem arises where IoT devices are added to networks without notice, which in turn causes performance issues that MSPs are not prepared to handle.
5. Clients’ confidence in their disaster recovery plans are lacking
According to research published in the Computer Business Review, less than 50% of UK companies are confident that their data is entirely backed up and only 35% are confident that they’ll be able to operationalise a disaster recovery plan. Unless their data is automatically backed up in real-time, there is indeed reason to worry.
In our next post, we will discuss how MSPs can overcome these challenges.