MSPs must evolve as customers seek strategic support not just services

A new report shows managed service providers have an opportunity to become strategic partners, but it requires a strong focus on business outcomes.

MSPs are in transition, moving from service provider to becoming a strategic partner, according to the latest Barracuda Networks MSP Customer Insight report.

Increasingly, partners need to provide both technical and business support, the global survey of 2,000 IT and security decision-makers found.

Marcus Chow, head of sales at Tecala Group, said he is witnessing the changing nature of MSP engagement with businesses.

“The MSP model is maturing, and we’re now being embedded earlier and more deeply in business planning,” he told CRN Australia.

In just a few years, Chow’s customers have moved from seeking transactional IT support to strategic enablement.

He’s seeing growing demand to align tech investments with business goals, reduce complexity and prepare for what’s next — which could be AI readiness, cyber resilience or cloud transformation.

“Clients are asking us to help shape their multi-year technology roadmaps, not just advise on tools,” he told CRN Australia.

Businesses are also turning to partners to help with spiralling tool sprawl, particularly disconnected security tools and vendors, the survey found.

Chow agreed, noting that businesses are looking to partners to help audit their tech stacks, consolidate overlapping platforms and create usage governance frameworks.

Partners are also being called on help businesses extract more value from the tools they already have, rather than defaulting to new purchases.

“It’s a balance of simplification and enablement,” he said.

Partners need to prepare to deliver advanced services

As they shift into a more strategic role, MSPs will need to develop expertise in AI and machine learning applications, network security measures such as zero trust and managed security operations, the survey found.

IT solutions provider 36-400 is adapting to the changing needs of clients, particularly as customers seek guidance on more ways technology can support and add value to their business.

The business is upskilling internally while appraising vendors and securing partnerships in the areas the business wants to focus on, said Johann Poppenbeck, customer success manager at 36-400.

While trialling services, Poppenbeck’s examining terms closely to ensure there’s flexibility for changing technology and customer requirements.

“Contracting or agreeing to long term [arrangements] isn’t viable. We need to be flexible and adaptable to the ever-changing landscape,” Poppenbeck noted.

To deliver advanced services, Poppenbeck expects MSPs will need to be more closely attuned to the business to provide technical guidance informed with deep organisational knowledge.

“As a true business partner, the service offered would be more effective and valuable if it’s applied in line with where the business is going and addressing the specific challenges being faced, than simply IT for IT sake,” he told CRN Australia.

MSPs becoming growth partners

MSPs are seen as indispensable, providing security expertise and managed solutions to support businesses to grow securely, the report explained.

“It’s no longer just a broken keyboard, or the power has not been turned on, in terms of problems. There’s a horde of pests trying to break your systems and steal what’s important to you,” he said.

It’s a case of the end-customer being able to focus on what they do best and allow MSPs to look after their technology platforms to ensure secure and efficient operations, Poppenbeck said.

“I don’t believe MSPs can just be a technical provider anymore unless there’s a strong IT literate person who has a dedicated IT role in the client organisation,” he told CRN. Australia.

MSPs are increasingly servicing larger organisations, the survey found. In some cases, MSPs acting as an extension of the CIO or CTO function, Chow has found.

“This shift means longer planning horizons, more regular strategy sessions and a focus on continuous improvement, not just reactive support,” he said.

To fulfil the role of growth partner, MSPs need to speak the language of business, not just IT, align tech with business risk and value, and start anticipating change, rather than just reacting to it.

“Australian organisations are seeking MSPs who can drive outcomes, not just uptime,” he ended.