The managed services business will see domination by the top five per cent of providers while increasing cyber-attacks, and security may be the disruptor that cloud never turned out to be says Michael George, CEO of Continuum. At the service technology platform user conference this week in Boston, he set out to highlight the three biggest shifts taking place in the industry, and to unveil the Continuum Security Go-To-Market Business Plan to support MSPs in the phase change.
A combination of market forces has created the perfect storm which will allow just 20% of the 40,000 MSPs in the United States to dominate 80% of the available revenue by 2020: a reduction in the workforce of up to 40%, mass market consolidation through merger and acquisition, and the dominance of large-scale MSPs in 107 metropolitan areas across five verticals.
And the security issue will be the driver for customers to switch suppliers: “At the beginning of the year, we predicted that security would be the number one reason why end-customers fire their providers,” Michael George said. “Today, that likelihood has only increased, because SMBs are no more than two degrees of separation from a business that has been hit by a cyber-attack. The threat has moved from our news headlines into our business circles, and every businessowner is fearing annihilation.”
“The one question on their minds now is how do I make sure this doesn’t happen to my business? That’s the question our partners need to be ready to answer confidently, or their competitors will,” he added. The Continuum Security Operation Centre dashboard (pictured) was used onstage at the event to simulate a cyber-attack and suggest that partners need to understand more about the threats.
“This industry got lucky with cloud because it made it easier to run our businesses. That meant MSPs were motivated to adopt new technologies and take advantage of the new efficiencies they offered. We will not be so lucky with security: it is going to be harder to protect clients from the escalating threat, harder to discuss what they’re secured against, and harder to keep up with the array of enterprise-grade solutions being developed to combat cybercrime.”
To provide MSPs with the guidance and support they need to navigate the industry shifts that await them, George will unveil the Continuum Security Go-To-Market Business Plan. “If MSPs are to survive the disruption that security will bring to the industry, they need to be ready for the hard work ahead,” Michael George said. “And, they need more than an industry-leading solution to succeed during this market shift. That’s why we created the Continuum Security Go-To-Market Business Plan, knowing that MSPs need the right combination of technology and knowledge to win in this marketplace. It’s crucial that our partners are equipped for the changes ahead, whether that means enhancing their business structure, becoming better at sales, or preparing for an eventual exit.”
