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95% of MSP leaders prioritize automation for growth and innovation – LogicMonitor report

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Managed Service Providers (MSPs) encountered a growing number of challenges, especially in the past year. These challenges range from outages and cyberattacks to employee attrition and lack of resources. However, amidst these concerns, MSPs are recognizing the importance of automation, AIOps, and modern technologies in mitigating risks and future-proofing their businesses. According to a survey conducted by LogicMonitor, 95% of MSP leaders believe that automating their processes is essential to allocate time for innovation and strategic goals.

While MSP leaders estimate that 39% of their manual processes have been automated, they believe another 41% could be automated to scale their operations and become next-gen MSPs. Automation not only saves valuable staff time but also reduces the risk of human error and can potentially increase profits. MSPs should focus on modernizing their operations and leveraging automation to enhance scalability.

Automating to cater to evolving enterprise IT needs

Enterprise customers are investing more in MSPs, particularly in areas where automated solutions can be provided. The areas of increased spending include IT training, cloud services, network infrastructure, and security compliance.

Current top needs of enterprises include 24/7 IT monitoring support, support for remote work, and decreased IT downtime, all of which could be automated and further supported by MSPs.

MSP leaders

Manual repetitive tasks pose challenges

Skilled employees spend nearly 40% of their time on manual and repetitive routine tasks. An overwhelming 88% of MSP leaders agree that these tasks frequently prevent engineers from focusing on innovation and strategic goals.

While some tasks have already been automated, MSP leaders believe that far more routine work could be automated in the future. Not only would this save valuable staff time, but it would also reduce the risk of human error and could ultimately increase profits. While 39% of tasks have already been automated, there is more that MSPs can do to better utilize their resources: leaders suspect 41% more could be automated.

Other than saving resources, automation can lead to many other benefits, like improved time efficiency (42%), reduced errors (34%), and increased profits (33%).

benefits of automation for MSPs

Leveraging automation to support customers

Today, Managed Service Providers (MSPs) cater to a wide range of industries. As MSPs’ customer bases grow, their customers’ requirements also increase. Customers are allocating more funds to their MSPs due to the rapid pace of digital transformation, the migration of data to the cloud, and the need to fortify defenses against cyberattacks.

Presently, customers are intensifying their spending on both MSP services and other business objectives, with a strong focus on maintaining online presence, ensuring security, and supporting their workforce. In order to thrive in a competitive future, MSPs must employ a robust automation process that allows them to effectively address these evolving needs.

Given the diverse range of industries from which MSP customers originate, it is imperative for MSPs to possess the ability to adapt their solutions accordingly.

MSP leaders must invest in solutions for scalability

MSP leaders need to make strategic investments in solutions that empower their engineers to innovate, capitalize on opportunities, and remain competitive in the market. Embracing cloud migration, AIOps, and automation initiatives not only provide immediate relief but also lay the foundation for a more efficient future for MSPs.

Most end customers (55%) are increasing their spending with MSPs each year. To stay relevant in the era of cloud computing, it is crucial for MSPs to conduct a comprehensive assessment of their preferred vendors and tools. This assessment should confirm that they are capable of seamlessly managing both cloud and on-premises environments without requiring extensive customization.

Investing in automation is paramount. While automation delivers immediate benefits such as enhanced efficiency, reduced errors, and increased profits, integrating automation into existing workflows as part of a holistic MSP modernization effort can be a daunting task for resource-constrained teams. Therefore, it is wise to choose partners and vendors whose solutions come with built-in AIOps capabilities and automation features.

By embracing automation, and investing in scalable solutions, MSPs can position themselves as leaders in the market and meet the evolving needs of their customers.

Source: LogicMonitor

Read next: Amid challenges, 91% of MSPs are in a stronger position in 2023 than in 2022 – Barracuda report

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