CBI 198 2024
Saw this article created by an old Friend – Harry Brelsford – An Evangelist for the Small and Medium IT Business. I first met Harry when he invited me to speak an an event he was hosting in Toronto several years ago.
Top 5 Predictions for 2024 We’ve quickly turned the corner on 2024 and are sprinting towards 2025. What better time to reflect on what remains for the next several months. I’ll take a stab at it!
- Industry Consolidations– Both on the Vendor and MSP sides, I’m seeing continued consolidations. That’s not a surprise with the number of cybersecurity vendors entering the SMB MSP space has accelerated. Need proof? Just survey the aisles at large MSP events you like to attend. Admittedly, many of those cybersecurity vendors are “one and done” logos but you’d be surprised with the M&A activity occurring in the background. Heck sometimes I wonder if folks created ISVs just to be acquired.
On the MSP front, as many in our space are aging out and private equity is circling the wagons to prey upon MSPs, you are seeing folks thinking getting acquired is looking pretty darn “tootin” good. Just had a cup of coffee with an MSP mate this past weekend who is thinking this is his next step. It makes sense.
Note: Perhaps we are moving towards the next wave – The IT World of Security. How are we going to effectively manage Cybersecurity- Buy Insurance and hope this will cover future problems. Yes, it is a new products for the insurance industry and growing, but just like flood and hurricane, automobile insurance when the exposure grows the rates do also and this will evoke change for the consumer.
- Love My Co-Managed Business Model– In speaking with several MSPs (heck that’s my job) I’m hearing that being part of the internal IT team at clients is increasingly desirable. For a lot of us, it’s lonely out there and we’re get tried and worn out. Ergo, increasingly MSPs are pitching co-management services. It’s like having a job without a job. Don’t take this option off the table folks!
Note: Has the role for MSP changed – Do the giants that create platforms think less of them than in the past. What has been changes occasioned by the Cloud – now at the Edge and large consolidators. Perhaps it is harder for the ‘SMB- MSP’ to survive Can they keep up to fa date with the customers needs and wants. Have their roles changed. All questions that a SMB must ask
- Flight to MSSP– The times are a changing rapidly – it’s the nature of our industry. Increasingly you are seeing the conversation shift from just being an MSP to add or elevate to the MSSP stature.
What is an MSSP? A quick gen AI “search” returned the following: A Managed Security Service Provider (MSSP) is an external company that offers cybersecurity services to businesses. MSSPs can help organizations improve their cybersecurity maturity by providing services such as
Vulnerability management… Identifying, classifying, and mitigating vulnerabilities in systems, applications, and networks. This can include vulnerability scanning, penetration testing, and remediation advice.
Network security management…Using tools and techniques to manage network security, such as implementing firewalls, intrusion detection systems, and VPNs. MSSPs also monitor networks for unusual activity that could indicate a cyber attack.
Compliance checks…Helping organizations understand their compliance obligations and implement the necessary security controls.
Incident response…Building a network of security experts who can respond to attacks as they happen. MSSPs can also conduct forensic analysis to manage incidents efficiently.
Expert advice…Providing advice on how to strengthen networks against cyber threats, such as recommending changes to network architecture or suggesting new security technologies.
Many organizations choose to outsource their security to an MSSP because of the complexity and niche expertise required to run an effective security program. MSSPs can offer a complete outsourced security solution, from baseline system monitoring to fully managing a customer’s security. The challenge in evolving into an MSSP is that it is the next level of growth and not all of the SMB Nation MSPs have the resources to do this. Fortunately, there are vendors (Consolidators) in our space you can team with to make it happen.
Note: As with many like industry the ability to remain small and best described as a ‘lifestyle business’ may becoming more difficult for the IT ‘SMB-MSP’ Yes you are still local in nature – can provide personal in face contact but your role can now be duplicated by group suing ZOOM from far away places. Think about it as you plan for the future
- Increased professionalism. Ryan McDowell from the UK offered the following insights. “Sooner the better… Regulation of MSPs in the UK to cut down on cowboys.” The National Society of IT Service Providers (NSITSP) has this exact mission. Another group involved with this is the International Association of Microsoft Channel Partners (IAMCP)
Note: IT is now a critical part of the world we live in. No longer just concerned with our business lives but everything we do in life. WE have touch points every second of our daily activities with some aspect of IT. Where will you as an SMB- MSP find your sweet spot
Robert H. Lane and Associates Inc. Business Advisors
4800 Dundas Street West Suite 100 Toronto ON M9A 1B1 CANADA CBI 198 2024
