In 2024, Managed Service Providers (MSPs) face challenges in the rapidly evolving world of cybersecurity. New technologies and attack methods are emerging, requiring MSPs to adapt their services to meet growing client demands for data protection. Cybersecurity has become a top priority, necessitating investments in advanced technologies, strategic risk management, and customer information protection. The primary objective is to safeguard data from threats and ensure business continuity.
Our role in securing client systems continues to expand in response to evolving cybercrime. According to the FBI, cyberattacks have increased by 400% since the onset of the pandemic! There is also a growing demand for managed security services – the global MSP market was estimated to be worth $299.01 billion USD in 2023, with further growth projected at a compound annual growth rate (CAGR) of 13.6% through 2030. So, what will the Managed Services Providers (MSP) market look like in 2024? Let’s take a closer look at this.
Challenges for MSPs in Cybersecurity
The challenges faced by MSPs in cybersecurity are both complex and diverse. Ransomware and phishing attacks have become more sophisticated, employing advanced techniques to bypass traditional defenses. In light of this, MSPs must critically assess their choice of solution providers in their portfolio – clients require multi-layered protection against various cyberattack vectors. MSPs must update tools and procedures to outpace cybercriminals; simultaneously, they must comply with regulations and directives to maintain digital security and data protection, such as GDPR or NIS 2 – all of this requires both legal and technical knowledge. Remote management adds another layer of complexity, as companies must secure distributed work environments.
Opportunities for Managed Services Providers
Despite the challenges, the rapidly changing cyber security landscape also presents unique opportunities for MSPs. Responding to these challenges can turn potential risks into opportunities for growth and development.
Specialising in cyber security, investing in new technologies and educating the market are opening up new avenues for growth. Managed service providers can offer security audits, vulnerability management and cyber security awareness training for clients.
Specialization in Cybersecurity
As companies become more aware of the consequences of cyberattacks, the demand for specialized cybersecurity services increases. MSPs that invest in developing competencies in this area can offer greater value to clients, distinguishing themselves in the market. Providing services such as security audits, vulnerability management, or cybersecurity awareness education opens new revenue streams.
Customer Education
The increase in cybersecurity awareness creates an opportunity for MSPs to develop their educational offerings for clients. Training programs, workshops, and conferences increase end-user awareness, a key element in preventing cyberattacks.
MSPs that offer comprehensive educational services build long-term relationships with clients while also raising the level of digital security.
Threats and Challenges
The year 2024 brings not only new opportunities but also threats and challenges that may affect MSP operations and their clients. Recognizing these threats and responding to them is crucial to ensuring effective protection and defense strategies for their clients.
Dependence on Technology
As companies become increasingly reliant on technology, any service disruptions can have significant financial and operational consequences. For MSPs, this means ensuring high availability and reliability of the services they offer, which requires continuous investments in infrastructure and redundancy technologies. It is also essential not only to have in their portfolio but also to use solutions such as BCDR to guarantee business continuity in the event of an attack or outage.
Compliance with Regulations and Laws
The increasing number of regulations regarding data protection and cybersecurity poses a challenge for MSPs to maintain compliance, both for themselves and their clients. Failure to understand or comply with these regulations can lead to significant financial penalties and reputational damage. It is essential to pay particular attention to requirements that are repeated in almost every regulation or directive, such as the obligation to ensure business continuity, i.e., backup management, restoring normal operation after an outage or attack. As mentioned earlier – the solution should provide multi-directional protection and be cyber-resilient to all threats.
Xopero ONE MSP Backup as a Response to MSP Needs
Xopero Software, a leader in backup solutions, responds to these needs with Xopero ONE MSP Backup, offering a business and technological model tailored to the contemporary requirements of MSPs.
Pay-as-you-go Model: Flexibility and Scalability
The “Pay-as-you-go” model is another significant advantage, allowing managed service providers flexibility in managing costs and service scalability. This payment model is particularly attractive in the IT industry, where the demand for services can dynamically change. It allows MSPs better control over finances and optimization of investments in backup infrastructure.
No Contracts: Minimizing Risk
Xopero facilitates cooperation by eliminating the need for signing long-term contracts. This approach minimizes risk, giving them the freedom to experiment and tailor the offer without concern for contractual rigors. This freedom supports dynamic service development and allows for quick adaptation to changing client needs.
Flexibility in License Sales
Xopero offers the possibility of selling licenses in a monthly model, further increasing flexibility and allowing adjustment of the offer to individual client preferences. Such flexibility in licensing model allows MSPs to build their own sales and promotional strategies.
Own Pricing Policy and Margins
Entrepreneurs have the opportunity to set their own pricing policy and margins on Xopero products, allowing them to shape competitive offers and maximize profits. Adjusting prices to local market conditions and client specifics becomes simpler and more effective.
30-day Trial Accounts for Clients
Xopero provides 30-day trial accounts, allowing clients to try out the services for free before making a purchase decision. This is an excellent way to attract new clients and build trust by demonstrating the value and effectiveness of the backup solution.
Sales and Backup Management Platform
Xopero MSP Backup offers the integrated sales and backup management platform, allowing for centralized management of clients, licenses, and backup services. This facilitates monitoring and optimization of operations, increasing operational efficiency.
Unlimited Data Storage
Xopero allows the creation of an unlimited number of data storages, providing scalability and flexibility in adjusting the backup infrastructure to client needs. This is a key element in ensuring high availability and data security.
Switching Licenses Between Clients
The unique functionality of switching licenses between clients gives MSPs additional flexibility in resource management and cost optimization. MSPs can quickly respond to changing client needs, adjusting license allocation without unnecessary formalities.
In 2024, MSPs face challenges and opportunities in cybersecurity. The increase in cyberattacks underscores the importance of vigilance and adaptation. MSPs must update their tools and procedures, comply with data protection regulations, and manage challenges associated with dispersed work environments. At the same time, the growing demand for cybersecurity services, technological development, and customer education offer new opportunities.
At Xopero Software, we understand that the dynamically developing cybersecurity landscape requires not only advanced technological solutions but also ongoing education and support for our clients and partners. As a company, we are committed to raising awareness and competencies in digital security, which is crucial in preventing cyberattacks.
We encourage direct contact with our team to learn more about our MSP model and collaboration opportunities. Jakub Stachecki is available for all interested parties who would like to schedule an individual presentation or obtain more information about Xopero’s offer. Contact him to discover how we can support you in ensuring the highest level of data security for your clients.