Kaseya predicts a technology boom for MSPs and SMBs

Predictions from industry experts at Kaseya indicate significant developments for Managed Service Providers (MSPs) and technology's role in shaping small to mid-sized businesses (SMBs) in the coming years.

Fred Voccola, Chief Executive Officer of Kaseya, discussed how technology is set to influence the future of MSPs. He stated, "Technology always has been, and always will be, the future. In the next two decades, the percentage of the economy made up of small to mid-sized businesses is going to exponentially grow. Thanks to technology, SMBs can compete with larger, global brands like they never could before."

Voccola further explained that as SMBs' productivity increases due to access to the same technology as larger companies, they become more entrepreneurial. This shift means that SMBs will represent a larger portion of the global economy, creating substantial opportunities for MSPs. Many SMBs lack internal IT and security resources, making their systems crucial assets that require reliable MSP support.

"The downside is that since it's a great market to be in, there will be a lot of competition. The MSPs who are effectively able to leverage automation to make their teams more productive, and have a cost structure in place, will win," Voccola noted. He highlighted that successful companies will have more efficient engineers yielding higher revenue, and reduced technology costs, thus maintaining higher gross margins.

Gary Pica, President of Kaseya's subsidiary TruMethods, pointed out that MSPs are now playing a more strategic role with their SMB clients, who are investing more in technology and security. "Lowering costs, adding value and becoming more efficient is the top priority of every MSP. Automation and artificial intelligence (AI) will play a critical role in this phase of the MSPs' journey," he stated.

Pica added that SMB decision-makers are becoming increasingly informed about comprehensive IT and security offerings, necessitating MSPs to provide complete and automated solutions to remain competitive.

Nadir Merchant, General Manager of IT Operations Suite at Kaseya, provided insight into the future of AI within the MSP landscape. He mentioned, "New technologies like artificial intelligence (AI) are expected to bring immediate transformation, but real impact often takes longer than anticipated. Just as the internet and smartphones needed decades to evolve, AI requires vast, purposeful data over time to reach its potential."

Merchant cautioned MSPs to be particularly vigilant with cybersecurity, as AI is also enhancing the capabilities of cybercriminals. He emphasised the importance of proactive cybersecurity strategies to protect the environments of both MSPs and their clients.

Ranjan Singh, Chief Product Officer at Kaseya, set forth four predictions for MSPs by 2025. One significant trend is the preference for platform solutions, including security platforms, endpoint security, or comprehensive IT and security solutions. Singh remarked that MSPs are seeking to reduce vendor fatigue and increase efficiency by consolidating their technology spend with fewer vendors.

Singh also predicted that MSPs would look to achieve workflow efficiencies and cost reductions through automation, largely driven by AI. He suggested that MSPs would market AI-driven services to distinguish themselves in the market.

Additionally, Singh highlighted a rising demand for improved customer experiences across various stages, including sales and support. MSPs are likely to prioritise customer experience over functionality when deciding on vendor partnerships.

Finally, Singh touched on the challenges faced by enterprise-grade service providers entering the SMB market, particularly the competitive pressures and pricing challenges when going head-to-head with companies like Microsoft.