Michael George is CEO of Syncro, a SaaS company specializing in PSA and RMM software for managed service providers (MSPs).
Managed service providers (MSPs) are navigating a rapidly changing landscape. As businesses continue adopting cloud-based infrastructures, MSPs need to stay ahead of rising demand while defending their customers from escalating cybersecurity threats.
At the same time, they must oversee IT operations and security across multiple clients, often relying on fragmented tools that complicate service delivery and create inefficiencies.
MSPs can thrive by focusing on three core strategies:
• Simplify technology stacks to reduce complexity and operational overhead.
• Enhance security by proactively monitoring compliance and enforcing policies.
• Scale efficiently with AI and automation to improve productivity and growth.
By adopting these strategies, MSPs can streamline service delivery, improve their clients’ security postures, boost profitability and strengthen trust.
1. Simplifying The Tech Stack
Most MSPs use more than 10 different vendor solutions. Mid-sized and larger MSPs may use more—sometimes 30—creating fragmented environments that hinder productivity, increase training and onboarding costs and complicate integrations. Rather than relying on disconnected tools, MSPs need to find ways to reduce their tech stack.
Eliminate Redundant Tools
Conduct an audit to identify overlapping tools and consolidate anything redundant to reduce inefficiencies and licensing costs. Some team members may resist due to their affinity for specific tools, but it’s important to stay disciplined throughout this process.
Prioritize Native Integrations
Consider platforms offering built-in functionality and integrations across security, monitoring and service management. This can reduce the need for third-party connectors, improve system stability and cut down on configuration and maintenance costs.
Standardize Workflows
A streamlined tech stack can make it easier to standardize workflows across teams, improving consistency and reducing errors.
Enhance Security And Compliance
Reducing the number of standalone tools can reduce vulnerabilities and compliance risks. A unified platform can help enforce policies more effectively and ensure continuous monitoring.
2. Enhancing Security By Reducing The Attack Surface
Every year, cybercriminals exploit vulnerabilities in small and midsize business (SMB) environments—and MSPs must remain vigilant. IBM’s 2024 Cost of a Data Breach Report found that the average cost of a data breach reached $4.9 million, a 10% increase from 2023. While this figure includes businesses of all sizes, SMBs tend to be hit the hardest due to limited resources and recovery capabilities.
The shift to remote work and cloud computing has further expanded the attack surface, making it more challenging for organizations to secure their systems across distributed networks. Meanwhile, AI advancements, rapid digitalization and rising global tensions have heightened cyber risks and forced MSPs to rethink their strategies.
Take a proactive approach to security by enforcing strict standards, continuously monitoring compliance and leveraging automation to detect and mitigate threats in real time. By implementing and enforcing security baselines, MSPs can systematically reduce vulnerabilities, strengthen client environments and minimize exposure.
Continuously Monitor Compliance
Use automated compliance tools to track security posture across client environments. Real-time alerts can help detect and address deviations before they become critical vulnerabilities.
Enforce Security Baselines
Standardize security protocols across all managed environments using industry best practices such as multifactor authentication (MFA), endpoint detection and response (EDR), Center for Internet Security (CIS) controls and least privilege access policies.
Automate Security Audits
Regular security assessments help identify weaknesses, but manual audits are time-consuming. Automating security checks—such as leveraging Microsoft’s Security Score and benchmark compliance reporting—can improve efficiency, ensure consistency and enable MSPs to be more proactive.
Reduce Third-Party Risk
Evaluate and minimize reliance on unnecessary third-party tools and integrations that could introduce security vulnerabilities. Ensure vendors follow stringent security protocols.
Proactively Detect and Mitigate Threats
Leverage AI-driven threat detection and security information and event management (SIEM) solutions to identify unusual activity and automate response actions.
3. Scaling Efficiently With AI And Automation
Traditionally, scaling a business meant hiring more staff. However, that approach is costly and often unsustainable, especially amid today’s tech talent shortage.
AI-driven automation can allow MSPs to grow their client base, improve efficiency and enhance service delivery without increasing labor costs.
By integrating AI into their core operations, MSPs can automate time-consuming tasks, optimize workflows and strengthen cybersecurity defenses. AI can accelerate ticket resolution and automate remediation, enabling technicians to focus on high-value client interactions and strategic initiatives.
Speed Up Ticket Resolution
AI-powered chatbots and predictive analytics can reduce resolution times by classifying tickets and attaching automations, enabling technicians to resolve many issues with just a click.
Automate Remediation
AI-driven automation can proactively fix IT issues, minimizing downtime and improving client satisfaction.
Enhance Cybersecurity With AI
AI-driven threat detection and response systems can prevent data breaches and accelerate remediation when incidents occur.
Improve Client Insights
AI-driven analytics can provide deeper visibility into client environments, enabling MSPs to proactively address recurring issues and offer data-driven recommendations.
AI and automation are quickly becoming table stakes for MSPs aiming to grow profitably. For most MSPs, labor is their primary cost driver; as businesses grow, it becomes a significant friction point. AI and automation help alleviate this pressure.
I would counsel any MSP looking to grow to develop a solid automation and AI strategy, with a focus on automating time-consuming, repetitive tasks. I would go so far as to say that AI and automation are critical ingredients for increasing the value of your business. They improve margins and enable faster growth. Potential acquirers often base a business’s value on earnings and growth, and AI and automation can greatly enhance both.
The Future Of MSP Growth
For MSPs, the challenge is about strategically adapting to new technologies, evolving threats and the need for greater efficiency. By simplifying their tech stack, proactively addressing security concerns and leveraging AI and automation, MSPs can not only stay competitive in a crowded marketplace but also deliver superior service to clients.
These steps lay the groundwork for sustained growth and long-term success in an ever-evolving IT landscape. With the right approach, MSPs can confidently take back control and position themselves for a bright and profitable future.
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