Managed Services Tech News

Managed Services Growth Continues In Australia

As MSPs determine how to navigate and succeed in the new digital economy, many are turning to emerging technologies to help propel their businesses into post-COVID-19 normal.

Considering the reliance on remote management technology, MSPs are extremely excited about the promise of 5G technology as it will bring new opportunities to their customers through the use of faster wireless networks.

MSPs will have huge opportunities to help companies develop, test and deploy this technology, which will significantly fuel innovation.

To support MSPs in this economy and market, one of the two most consistent drivers of MSP growth is generating a higher percentage of total managed services revenue and setting specific revenue and growth targets. Taken together, these two activities allow MSPs to roughly double their growth rate.

For every 10 percent of total revenue from managed services, MSPs increase their business by 0.25 to 0.75 percent annually.

The next-generation of MSP IT services are currently playing a significant role in transforming the way organisations think about data, its value and purpose. They are doing this by helping organisations to explore and develop new technologies in a cost-effective manner.

Firms like these are offering managed services at affordable prices, in line with current market demands. Furthermore, Managed services offerings of these firms continue to evolve with the times, as more industries are looking towards a unified infrastructure to leverage the value of digital data across multiple verticals.

Market Maturity

There are many reasons to buy MSP services. In the Australian and New Zealand markets, cost comes first, but more mature buyers, especially those looking for second or third generation services, are looking for added perks like greater analytical ability, access to SOW services, and a better experience for their clients

Bridging the gap

Managed services providers today can help organisations bridge the gap between IT investment, accelerated growth and operational efficiency. This is possible because the infrastructure investments required for organisations today are not economically feasible for most businesses.

IT budgets are constantly stretched to meet day-to-day operational requirements and it becomes increasingly difficult to make a return on investments made in the past. These investments are only made during peak seasons and when the margins for profit are highest.

Economic climate

In this challenging economic climate it is important for companies to consider IT managed services for cost effective solution to their technology challenges. They have developed strong customer relationships and these customers, like all industries, also face constant technological challenges keeping them safe from a lack of cyber skills and insecurities.

Cost of Australian MSPs

There are many factors influencing the pricing of a Managed Services solution that is right for your business.
Costs can vary based on the complexity of your IT environment, the number of users and devices, and the level of support required, but typically a managed service agreement is between $99 and $199 per user per month

Online Security

Most managed IT services companies already provide some elements of online security, including antivirus, firewalls and some form of data and network security management, but a large gap still remains between what they offer and delivering a fully fledged online security solution.

The growth in managed services is creating a new set of challenges for service providers, especially MSPs.

Their traditional business model has been based on selling a product or service and collecting payments from customers. With the advent of cloud-based solutions, this model is now facing fierce competition.

The traditional MSP model is being challenged by companies that have started to leverage the cloud, providing their customers with computing power and infrastructure that is located, managed and operated elsewhere. These companies are able to reduce costs, and they provide a flexible, dynamic and scalable solution for businesses that can’t manage their own IT infrastructure.

Managed services to dominate in 2021

Data#3 released a report, which collects the opinions of experts and company leaders on the future of the IT industry.
Titled Future in Focus, the report is divided into sections on enterprise technology, customer experience, cybersecurity, human resources, healthcare, and education.

The report notes that when it comes to enterprise technology, the conversation has moved from discussing the product to discussing the results. Success in working with corporate clients must come from an understanding of the key goals, which will depend on the type of organisation and the current state of their technology investments.

Everything as a service will only continue to conquer the market as hardware, from physical infrastructure to devices, continues to shift towards a consumer model. But with this recurring revenue comes customer expectations for flexibility, scalability, and support that will need to be met.

The Managed Services Industry

The managed services industry is growing at a phenomenal rate in recent years. This is primarily due to the growth of the private sector. As a result of this, there are now many more businesses that are offering this type of managed services than there have been in the past. The managed services industry is actually one of the largest growing sectors of the Australian economy.

In order to take advantage of this growth potential, business owners in Australia are looking closely at what the managed services industry has to offer, and how they can take advantage of it.

Cloud Based Services

One of the most important aspects of the managed services market is the continued expansion of cloud-based services. The cloud-based managed infrastructure solutions allow businesses to save money while also making the most of their IT resources. Cloud based infrastructure helps to reduce operational costs and increase productivity.

Take Away

“MSPs will continue to provide businesses with the infrastructure that they require while also allowing them to save money and expand their business,” said CEO Tech Business News Matthew Giannelis

As new and innovative technology is developed and businesses continue to grow, there is also an increasing need for managed services.

By using the latest technology, integrated with managed services is continuing to help provide businesses with everything that they need to operate effectively.


Sandra Dawson

A writer and technology industry expert

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