The MSP Zone mspalliance

The Managed Service Provider (MSP) industry has seen significant changes since 2010, marked by a trend towards Private Equity (PE) expansion, growth, and consolidation. This movement has brought about a critical examination of value creation versus value extraction within the sector. Value creation in this context refers to the process of enhancing a company's value by offering superior products, services, or experiences that customers appreciate. On the other hand, value extraction often involves maximizing profit without necessarily contributing new value to the market or stakeholders.

The MSP landscape has also witnessed the emergence of challengers to value extraction vendors. These challengers advocate for practices that prioritize long-term value creation over short-term financial gains. As MSPs become more discerning, they are increasingly supporting vendors that align with their values and business goals, often making choices that reflect their commitment to sustainable and equitable growth.

Private Equity's impact on MSPs has been multifaceted. PE firms have been instrumental in driving consolidation in the industry, creating large MSP platforms through acquisitions. While some of these PE-backed platforms have had a positive influence by providing resources for innovation and expansion, others have drawn criticism for prioritizing financial outcomes over the needs of the MSP community and their clients.

As the MSP industry continues to evolve, the debate between value creation and value extraction remains central. MSPs are actively participating in shaping the future of the industry by making informed decisions that reflect their preferences and values, which often includes a shift away from vendors and practices associated with value extraction. The influence of Private Equity is undeniable, and its role in the industry's future will likely continue to be a topic of discussion and analysis.

Chris Massey's journey in the IT field is a testament to the dynamic nature of the managed services industry. Starting as an internal IT professional, Chris has traversed various roles, gaining invaluable experience along the way. His tenure at Bocada, DRS, and Involta equipped him with a deep understanding of the industry's intricacies. At N-able, Chris has taken on the mantle of a mentor, guiding MSPs globally. His insights are shared on the N-able podcast, 'Now That's IT,' where he delves into the evolution of managed services.

The conversation with Chris Massey reveals the profound transformation within the managed services sector. From its early days of simply providing tools, the industry has matured into a comprehensive support system for partners, encompassing a multitude of their MSP practice facets. This evolution reflects the increasing complexity and sophistication of IT environments and the growing recognition of the strategic value MSPs bring to businesses.

As the industry continues to evolve, figures like Chris Massey will be at the forefront, shaping the future of managed services and ensuring that MSPs remain integral to the IT ecosystem. The trajectory of managed services is poised to expand further, driven by innovation and the relentless pursuit of excellence, much like the career of Chris Massey himself.

John Street's contributions to the managed services professional community have been significant and long-lasting. His entrepreneurial journey began with the founding of MX Logic in 2002, a company that quickly became a household name among Managed Service Providers (MSPs) for its robust email security solutions. The acquisition of MX Logic by McAfee in 2009 stands as a testament to the company's success and the value it provided in the realm of cybersecurity.

Continuing his visionary approach, Mr. Street established Pax8 in 2012, aiming to revolutionize the way cloud-based products are sold and managed. Pax8's innovative platform has since been instrumental in streamlining the procurement and management of cloud services, further cementing Mr. Street's reputation as a pioneer in the industry. His foresight and dedication to improving the MSP ecosystem have undoubtedly left an indelible mark on the field.

If you are an MSP, chances are you protect, monitor, and manage client data all the time. But the rules around data have changed significantly. Previously used tools, tactics, and rules are no longer applicable as data theft crimes and risk increase.

Guy Bavly, CEO of Actifile (actifile.com), enters the MSP Zone to discuss these issues.

Transitioning from a traditional IT model to a managed service provider (MSP) model is a significant change that involves a strategic overhaul of business operations. The process typically includes adopting a proactive approach to IT services, which contrasts with the reactive nature of many legacy IT models.

The journey from a reactive IT company to a successful MSP practice, as exemplified by David Besse and the 415 Group, involves several key steps. Initially, it requires a clear understanding of the managed services model, which focuses on proactive monitoring and maintenance, cost efficiency, enhanced security, and scalability and flexibility.

A comprehensive transition plan is crucial, which should outline the objectives, assess migration targets, establish success criteria, and prioritize objectives. Overcoming potential challenges such as resistance to change and migration obstacles is also part of the process.

David Besse has led the 415 Group through this transition. Under his guidance, the company has focused on offering clients the necessary services and tools for success, emphasizing the importance of a strategic partnership with an MSP that aligns with the business's goals and needs.

In summary, transitioning to an MSP requires a well-thought-out plan, a willingness to embrace change, and a proactive approach to IT management. By following these steps and learning from the experiences of those like David Besse and the 415 Group, companies can navigate the complexities of this transition and emerge as successful MSP practices.

State and local governments are under attack like never before. Drive by cyber-attacks are crippling already overwhelmed governments and creating unnecessary financial and political pressure on these organizations.

The source of these attacks and the methods being used is not in dispute. What is not being discussed, is the solution. So, I am going to present a very simple, immediately available solution to any governmental employee out there listening to this podcast: managed service providers!

Now, I know what you're going to say. I thought MSPs added risk to our cybersecurity. That is simply not true. It has never been true. In fact, it is a falsehood propagated by inept cybersecurity insurance companies who can't figure out how to quantify their own cyber risk, so they blame the only visible party in the equation, the MSP.

Now, you may be also saying, well why would I use an MSP when they are being sued by their clients for failing to prevent cyberattacks? Well, again, that's a falsehood being
propagated by uneducated people in the media and elsewhere, who just don't know what they are talking about. 

MSPs do not practice reactive or break/fix services. The oxymoronic phrase "reactive IT management" does not make sense because you cannot manage IT in a reactive
mode. Only proactive services (i.e., managed services can truly "manage IT." Recent headlines claiming MSPs being sued by their clients are really reactive or break/fix IT companies…not MSPs!

Finally, MSPs are the only organization capable of addressing the systemic issue here; the lack of consistently applied policies, procedures, and controls, designed to
radically reduce (not eliminate) the chance of a cyberattack being successful.