The Future of MSPs: Automation, Efficiency, and Growth

The landscape of information technology is evolving at a rapid pace. Businesses are becoming increasingly reliant on complex IT infrastructure and systems to operate. They are turning to Managed Service Providers (MSPs) to help navigate these technological advancements while optimizing efficiency. In this article, we will explore the key trends shaping the future of the MSP industry, with a focus on automation, improved service delivery, and sustained growth.

Cloud Computing Cements its Dominance

As per Gartner, worldwide public cloud spending is forecasted to expand by a remarkable 23.1% in 2021. It would reach $678.79 billion in 2024. This reflects the meteoric rise in the adoption of cloud solutions. Multi-cloud and hybrid cloud environments are becoming ubiquitous. Robust cloud management capabilities are strategically important for MSPs. 

Integrating cloud migration and continuous optimization of cloud platforms into their service offerings can help MSPs leverage the rapid growth of this market.

The Shift Towards “Everything-as-a-Service”

Riding on the ubiquity of cloud computing is the booming Everything-as-a-Service (XaaS) model. Software, platforms, infrastructure, and devices are offered based on a subscription, on-demand basis. Software-as-a-service (SaaS) remains dominant in the XaaS landscape, with the market expected to reach $122.6 billion in 2021. However, Infrastructure-as-a-Service (IaaS) and Desktop-as-a-Service (DaaS) are expected to experience the highest expansion. They are expected to grow by 38.5% and 67.7% respectively.

By providing customized “as-a-service” solutions, MSPs can enable greater flexibility and scalability for businesses to keep pace with rapid technology advancements. They provide an integrated business platform with third-party tools. SyncroMSP helps you drive your MSP efficiency from one dashboard.

The Critical Importance of Integrated Security 

The rise of remote and hybrid work models has vastly expanded during the pandemic. It has surfaced many cyber attacks that businesses need to secure. 80% of data breaches involve the human element, highlighting the need for comprehensive security awareness and training. 

The digital transformation has also expanded the threat landscape, with cyberattacks predicted to result in $10.5 trillion in annual damages by 2025. 

In response, global annual spending on cybersecurity solutions hit $150 billion in 2021, a 12.4% increase. This escalating risk environment makes comprehensive, integrated security a top priority.

MSPs embed advanced cybersecurity tools and AI-powered threat detection into their service bundles, enabling them to offer robust protection to clients in the face of increasing cyberattacks. With cyber-attacks growing more frequent and sophisticated, piecemeal security solutions create gaps that can prove disastrous.

Integrating tools like anti-malware, firewalls, intrusion detection/prevention systems, and secure web gateways is crucial for defense-in-depth. Equally vital are measures like multi-factor authentication (MFA), data encryption and backup, vulnerability management, and regular patching/upgrades.

AI-powered threat intelligence enables “proactive cybersecurity” by alerting MSPs to vulnerabilities before attacks happen. Machine learning further enhances threat detection accuracy over time. Leveraging automation also allows MSPs to contain threats rapidly by isolating compromised endpoints. 

MSPs as Strategic Advisors 

Continuous innovation in cloud, as-a-service models, automation and security is requiring businesses to stay nimble. As a result, MSPs are evolving into strategic advisors – utilizing their technical expertise to provide fully managed, customized solutions that help clients focus on core operations rather than get mired in IT complexities.

Positioning themselves as an extension of clients’ IT teams allows MSPs to deliver greater value and strengthen partnerships.

The managed services ecosystem is dynamic, with opportunities for MSPs to drive efficiency, security, and innovation. It is achieved through automation, advanced security tools, migration capabilities, and strategic advising. 

By emphasizing these, MSPs can unlock doors to sustained growth and cement their pivotal role as IT transformation partners.

Staying updated on the evolving cyber threat landscape and keeping security tight across cloud platforms, remote endpoints and mobile devices can be challenging for businesses focused on daily operations. 

As strategic advisors, MSPs act as an extension of their client’s IT team – managing multi-layered security tools, detecting threats early, responding promptly, and advising clients on policies/training to tighten human-side security.

The strategic advisory also encompasses keeping clients updated on technology shifts, like hybrid cloud adoption, while proactively tackling pain points faced by the organization. This allows businesses to redirect time and resources from IT fire-fighting to fueling innovation and growth initiatives.

According to LogicMonitor’s 2021 MSP report, $1 spent on an MSP saves $3 on average over DIY IT infrastructure management and upwards of $9 for optimized cloud migration/management services. Such compelling ROI makes the case for strategic partnerships stronger.

Building a Resilient MSP Business Model

MSPs are discovering the importance of diversifying their service offerings beyond traditional IT support. This might include cybersecurity, cloud solutions, or industry-specific expertise. A resilient MSP business model caters to the evolving needs of clients in an ever-changing technological landscape.

Embracing Automation and Efficiency

Automation is no longer a luxury but a necessity. A resilient MSP business model integrates automation tools to streamline workflows, enhance efficiency, and provide proactive services. By automating routine tasks, MSPs can allocate resources strategically, ensuring optimal service delivery.


  1. What are the key technology trends shaping the MSP industry?

The most pivotal technology developments driving the growth of the MSP market include cloud computing, the shift to Everything-as-a-Service (XaaS) models, increasing importance of cybersecurity, automation, and AI-driven solutions. 

  1. How can MSPs capitalize on cloud adoption?

By strengthening cloud management, optimization, and migration-focused offerings, MSPs can help businesses fully unlock the agility, scalability, and cost efficiency promised by the cloud.

  1. What is the role of cybersecurity for MSPs?

With attacks escalating, advanced cybersecurity tools and services integrated into service bundles are crucial for MSPs to provide comprehensive protection to client infrastructure and systems.

  1. How are MSP offerings evolving?

MSPs are shifting towards more strategic advisory services – utilizing automation and AI to deliver optimized, tailored solutions to each client while providing proactive recommendations on security, upgrades, and continuity planning.


In essence, the future of MSPs is one where they not only navigate the complexities of the technological landscape but also lead the charge in defining the standards for excellence. By embracing the transformative power of automation, honing operational efficiency, and fostering growth-centric strategies, MSPs can confidently shape a future that is not only promising but also resilient and thriving. 

As technology continues its relentless advance, MSPs poised for innovation and growth are well-positioned to chart a course toward continued success in the dynamic realm of managed services.

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