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Posted by Jonathan Silber on May 24, 2012
Over the last two months, I’ve had the opportunity to interview a plethora of managed service providers (MSPs) and MSP platform vendors across the US, Europe, and Asia. The experience has provided me with an inside view into the fastest-growing technology channel today, but it has also provided me with a clear understanding of the evolutionary path MSPs must take as they attempt to reach a new level of maturity (and profitability).
For those tech vendors hoping to cash in on the budding billion-dollar managed service opportunity, it is critical to first understand where the movement began in order to understand where it is headed. The figure below (from my most recent report, Managed Service Providers, Part 1) highlights the three unique stages of MSP development:
This new aspect of MSPs’ business model, MSP 1.1, is the future of the MSP industry and is having significant impact on the MSP landscape. Whereas the first two stages primarily focused on IT infrastructure, the MSP 1.1 model fully merges IT infrastructure with other cloud services (e.g., storage, application hosting), making it a technologically stronger spawn of the MSP 1.0 model. I believe, over time, that this evolutionary next step is required for MSPs to maintain their growth and viability.
Please share your thoughts and/or questions!
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