Why MSPs are in demand

On-demand services are surging past software and hardware, destined to be the largest segment spending of SMEs.

Johannesburg, 26 Aug 2020

The behavioural dimensions of whole industries have changed drastically and partners have to find new means of providing authentic and quantifiable value in these trying times.

On-demand services have come to the fray and made a persuasive argument for the managed service provider (MSP) business model. The ease of adoption, scalability, integrations and plug-and-play deployment make MSP offerings relevant, with tangible business value metrics for the current and foreseeable market dynamics.

Through the growing number of MSPs, the channel provides the help and support that customers need to scale their services and operations efficiently. Vendors have stepped up to the market conditions, making ease of transacting a priority, through the introduction of flexible financing, bundled solutions, acceleration programmes for MSP certifications and related efforts, all focused on providing value in these extenuating circumstances.

As tough and challenging as these times have been, vendors like Cisco, Dell, HPE, McAfee, Microsoft, Solarwinds and VMware, all of which are in the Axiz stable, have played a crucial role in ensuring MSPs and the SME market keep their heads above the water and are poised for the future.

2020 has already proved to be a challenging year for the ICT industry. However, the pandemic has highlighted the vital role played by MSPs, specifically for the SME market. According to Gartner, public cloud services projections indicate a growth of 19%.

In comparison, cloud-based telephony, messaging and cloud-based conferencing will also enjoy high levels of spending, growing 8.9% and 24.3%, respectively. Because the worldwide IT spending indicators point to decline by 8% in 2020, these golden threads of opportunity provide partners a focal point for innovation.

That focal point is becoming a trusted ITaaS provider. Pivoting a business from being product-centric to customer-outcomes driven is no easy feat, but Axiz has the people, processes, systems and vendors to help you navigate this journey.

As resellers entering this market, you needn’t traverse this challenging yet rewarding territory alone. Organisations have to prioritise mission-critical activities in every tier, department and function of the business. There is a clear and present opportunity for resellers to either build or ramp up a recurring revenue model. Admittedly, there are casualties in and among market players, but resellers are reporting upward of 200% growth in this space.

As a catalyst for business transformation, Axiz helps our partners select the right set of value-based outcomes to take to market. The MSP model speaks directly to the Axiz ethos, it transcends technology by focusing on solutions for customer pain points and builds an ecosystem of technologies and vendors to create the symbiotic, partner-centred market offerings.

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