The use of IT-managed service providers (MSPs) is surging as enterprises increasingly partner with MSPs to remotely manage various aspects of their IT systems, such as network and infrastructure management, cloud services, cybersecurity, storage and monitoring.

Industry research demonstrates that upward trend. In a study by Fortune Business Insights, the global managed services market size was valued at $283.90 billion in 2023 and is projected to grow from $316.87 billion in 2024 to $839.83 billion by 2032, a compound annual growth rate of 13%.

So why are more businesses relying on MSPs for enhanced IT support and services? Many factors contribute to this strategic decision, including these top six reasons.

1. Cost efficiency and scalability

By leveraging MSPs, businesses of all sizes can harness the power of cloud computing and other IT services without making large capital investments in IT infrastructure. MSPs offer various pricing models, among those an OpEx model – in which customers pay a fixed, recurring (usually monthly) cost for cloud hosting and storage. This not only avoids huge and typically sudden capital outlays, but it also typically means lower upfront costs. This model generally results in lower operational costs compared to doing it yourself since maintenance and upgrades can be managed by the cloud service provider.

In terms of scalability, MSP partnerships allow businesses to scale services as needed and only pay for what they use. This approach supports growth and flexibility by enabling companies to scale quickly in the event of increased client volume, which is crucial for staying competitive in today’s fast-paced business environment.

2. Enhanced cybersecurity

As a core tenet of their service offering, quality MSPs invest significantly in staffing and infrastructure to provide high-level cybersecurity. With greater technical resources and expertise than individual businesses, the best MSPs are highly motivated to ensure their customers operate securely and efficiently.

3. Access to specialized expertise

Businesses using MSPs access a team of highly skilled IT professionals without the overhead of hiring and training additional full-time staff. With deep knowledge and expertise in IT disciplines, an MSP’s expert team enables businesses to handle complex IT challenges and tailor services to meet specific business needs. Such expertise extends a company’s internal team and can be available for short or long-term assistance.

4. Freeing up internal teams to focus on core business objectives

By offloading IT workloads to an MSP, businesses can free up time to focus on key strategic objectives. Routine tasks like ongoing monitoring and occasional projects can easily be handled by the MSP’s team, giving internal staff time for new initiatives to advance business growth and innovation.

5. Efficient and professionally managed disaster recovery

By moving to a quality MSP, businesses can access best-in-class backup and disaster recovery technology that might be too expensive for an individual organization to buy. Coupled with the specialized expertise of MSP providers, organizations can ensure their data is protected, IT systems are up and a solid data recovery plan is in place.

6. Governmental and industry compliance

Many organizations have IT compliance requirements, set by the government or their regulated industry, related to the protection of consumer privacy and to guard against fraud, theft and other illegal activities involving business data. For instance, the health care industry has strict compliance standards around patient privacy mandated by the HIPAA Act, while publicly traded companies must comply with mandates of the Sarbanes-Oxley (SOX) Act, enacted in 2002 to provide greater oversight of corporate financial reporting.

Ensuring a business has the required cloud compliance certifications is key and can be time-consuming, particularly since some certifications require annual renewal. This prompts many organizations to align with a compliant cloud MSP provider, whereby the service provider is responsible for ensuring cloud compliance certifications that also cover their hosted organizations.

LightEdge offers leading MSP services in a highly secure environment

If you’re a Twin Cities-area business thinking of partnering with an MSP, LightEdge can help. We’re a leading provider of secure cloud and colocation and recently acquired a Tier III data center in the Minneapolis area. Our MSP offering includes fast, reliable and extremely secure network and cloud services, with a 100% uptime guarantee.

In addition, we are completing an acquisition that will further enhance our service offerings, adding six data center locations to LightEdge’s existing footprint of 12 highly interconnected facilities across eight U.S. markets. Leaders in compliance certification, LightEdge has provided IT infrastructure services for nearly three decades, with an experienced team that prioritizes working closely with customers to ensure the best outcomes.

Source: https://www.bizjournals.com/twincities/news/2024/04/15/6-reasons-more-businesses-are-turning-to-msp-s.html