Many solution providers suffer from an identity crisis. At industry events, we constantly hear them ask each other, “What do you call yourself?”

If you’re moving toward a services offering—which almost everyone is, due to the prevalence of cloud—are you then still a VAR? Is the blanket term MSP becoming outdated with the advent of so many specialized services, from cybersecurity services to cloud-based storage to data services? Every company seems to have its own response to this question, and there’s no handbook to provide definitive guidance. All we know for certain is that the industry is constantly transforming, and it’s imperative that solution providers keep up.

As a distributor that also provides services to channel partners, we want solution providers (however they classify themselves) to truly pay attention to what services are most relevant in this rapidly evolving marketplace. They can be genuine agents of change for their customers, delivering a competitive edge, instead of perpetuating the status quo.

Unfortunately, not nearly enough end-users—or even MSPs—have an accurate, next-gen perspective on which services have been made redundant by the cloud, and which emerging services have become far more valuable. Many companies take an antiquated approach to network maintenance, for instance, still requesting SLAs around uptimes, availability, and patches. Meanwhile, cloud-based infrastructures have made patches and upgrades obsolete. Or at least, they’re no longer delivered by the MSP.

Always-connected computing environments facilitate ongoing, automatic upgrades from the vendor. Zero Trust environments and sophisticated cloud-based failover systems make availability more of a table-stakes assumption, as opposed to less-reliable, legacy VPNs. Many things that were delivered by the channel partner are now simply bundled into the functionality of the software. They’re part of the “always updated” environments offered by models like DaaS and SaaS.

Matt Hughes

Similarly, customers still ask for reactive data protection that relies on filters and blacklisting/whitelisting of IP addresses, despite the rapid evolution of the threat landscape. IDC predicted that the global spend for security would reach 12.2% growth year-over-year in 2025, demonstrating the ongoing need for new, transformative cybersecurity solutions. In this crucial category, an effective cybersecurity solution provider must take a pro-active approach. That means implementing solutions with AI-driven tools that analyze network traffic in real-time and alert administrators to suspicious patterns before any compromise occurs.

Reinventing the MSP’s Value

To remain competitive, a solution provider needs to modernize not just the solutions it offers but also modernize how they define and deliver value in a cloud-based, data-centric world. The years of physical infrastructure management and application management are gone. Remember when an MSP would literally sit at a console and monitor blinking lights? Now data traffic is monitored automatically within the cybersecurity solution -- all conducted through the cloud.

Many technology vendors emphasize speed-to-value in their solutions, which optimizes the time required to see tangible ROI on their technology purchases. MSPs need to keep pace with this trend. A next-gen service provider should be able to maximize the value of their clients’ SaaS platforms “at pace” using cloud-first strategies, especially in the crucial area of cybersecurity.

Data – The New Frontier

The watershed of technology now available produces a plethora of accruing data, which IT administrators in enterprise and mid-market organizations have to curate every day. Sometimes the biggest challenge of this legacy environment is the simple act of teaching the business customer how to prioritize these millions of data points. The solution provider adds value by acting as a consultant, helping business customers understand which data points to pay attention to, and which are most important in avoiding a breach.

Because data is a key element in any cybersecurity strategy, MSPs should also recognize the need for a comprehensive data program. An effective program will serve as a “data roadmap” for customers, plotting out the best ways to achieve value from their technology platforms as they mature. Solution providers too often implement platforms without acquiring the necessary data expertise, or the ability to chart a data program course that will facilitate the customer’s unique journey. An MSP needs partners who can help them develop this critical element for their customers, extending data expertise on the MSP’s behalf.

Providing Value by Addressing Gaps

Why are end-users lagging behind in their mindsets? Mediating cyber risks is an ongoing challenge for corporate customers due to a list of factors:

• Technology deployments are often budget-constrained, without consideration for services that can maximize the capabilities of cloud infrastructure.
• Technology evolves at lightning speed, providing a myriad of choices that make decision-making daunting.
• Projects are often under-scoped and fail to account for a full range of business requirements. Solutions should be use-case driven, not reactive or incidental.
• Due to talent shortages, organizations often work with skeleton crews or without the full set of skills to maintain their technology ecosystems.
• Customers want greater speed-to-value to justify their investments.

These challenges can result in issues like misconfigured solutions or technology gaps, a limited ability to accommodate real-world needs, and no foreseeable ROI roadmap. MSPs can target these areas to modernize their services strategies. Solution providers should look to deliver innovative options for customers that address wider business issues, like the shortage of cybersecurity talent. If MSPs aren’t delivering value through SaaS-oriented services, they’re not truly providing the next-gen tools that give enterprises a competitive edge and drive outcomes for the future.

Resistance is Futile

Although it’s easy to call your MSP practice “cutting-edge,” the reality is often different. Too many end-users stick to the more reactive, passive offerings and strategies they already know, as opposed to embracing the latest models now driving a cloud-everywhere, services-first market. Resistance to this change leads to ineffective IT spending, “tired” technology stacks, useless shelfware, unrealized value, and missed business opportunities.

(Matt Hughes is VP, Service Delivery for Cloudrise, an Exclusive Networks company that provides data protection and security services).