MSPs across the APAC region have reason to be optimistic in 2024. Analyst data points to an expanding market, and organisations across the region will be grappling with unprecedented technology challenges and opportunities.
Given that the ongoing skills shortage will continue to make internal resourcing for IT projects challenging, MSPs will find themselves in great demand.
To fully capitalise on the opportunity, MSPs will need to prepare for several significant trends that will dominate the market over the year. Some of the key ones include:
1. Consolidation in the market
One of the defining trends in 2023 was consolidation in the MSP space, and this is likely to continue in the new year.
Several factors drive this.
One is the need of larger MSPs to scale, and with organic growth being challenging to resource and scale quickly, growth through acquisition will help these organisations to meet their objectives. It’s also reflective of the need to be able to offer solutions that are highly tailored to the organisation, which often requires highly specialised skills that smaller MSPs can bring to a larger group.
Meanwhile, for smaller MSPs, being acquired into a larger group will be seen as a positive move to help manage the broader economic challenges, which are expected to deepen this year.
2. AI is not optional
MSPs will need to keep pace with the use of AI to support everything from business operations to cybersecurity. AI tools offer an opportunity to improve productivity, operate with greater agility, and boost efficiency, and customers will expect their technology partners to take full advantage of those capabilities.
At the same time, MSPs will need to be aware of issues around data collection in AI models, as well as copyright concerns and the capacity for AI models to generate errors. The MSP’s customers will be looking to the MSP to provide leadership and expertise on how to navigate the challenges posed by AI.
3. Cybersecurity will become even more core to the MSP’s offering
With tightening regulation across the APAC region, and the increased proliferation of threats, one of the most significant areas of IT where MSPs will be called on to support their customers will be in establishing and then managing a multilayered defence strategy.
Successful MSPs will be able to provide thorough vulnerability assessment, detection, and response solutions, as well as devise a backup and recovery solution. MSPs will also need to be able to roll out zero-trust protection, in a way that doesn’t compromise the user experience.
Together, these three cornerstones of 2024 will underpin a highly dynamic 2024. It’s an opportunity for MSPs overall; however, for some it might require a re-adjustment and re-focusing of business models, away from what was previously typical of an MSP’s service, and pivot towards a more holistic and end-to-end approach to IT for their customers.
Stay tuned to the new Channel Insider for info and interviews on the HSP250 — our hand-picked list of hybrid solution providers (HSPs) who are already expanding the frontiers of these three trends.
In the meantime, browse our list of the top cybersecurity software to offer your clients.