What difference is managed IT services making for UK businesses?

Following National MSP Day 2018, we look at the MSP takeup by small businesses and what the MSP space needs to do to keep up with business demands.

Yesterday was National MSP Day 2018, a chance to celebrate the difference that managed IT services are making to UK businesses. To help mark the occasion, the Barracuda MSP team launched The Evolving Landscape of the MSP Business Report, which reveals the vast majority of UK SMEs are now subscribing to some form of IT managed services. However, narrow adoption and a lack of trust in third-party data governance means there’s still more work to be done.

This research is a detailed analysis of the appetite and application of managed IT services within UK SMEs. The views of those offering managed services have been compared with the observations of those who are using them in order to gain a comprehensive understanding of the opportunities and challenges likely to affect further growth in this sector.

Key findings

There is widespread adoption, with 83 per cent of UK SMEs using some form of IT managed service. Managed service adoption remains narrow, with the services most commonly offered by MSPs not matching the services most commonly purchased by UK SMEs.

Trust is an issue, with 83 per cent of UK SMEs who won’t touch managed services citing lack of trust to handle their data as the reason, and 8 per cent of UK SMEs either never received a contract from their MSP or admit to having never read the Ts & Cs.

While it could be said that the findings paint a competitive market with a generally positive outlook, clearly there remains many areas for MSPs to work on to improve the experience and commercial benefits for all concerned.

As part of the research, Barracuda partnered with independent IT analyst Clive Longbottom, who provided a foreword and independent conclusions from the findings. ‘On the surface, it’s logical that the desire to reduce capex whilst increasing efficiency, coupled with the need to overcome a lack of available skills internally to battle mounting security threats, would prompt many to turn to managed services,’ he commented.

‘Although the research reveals cost reduction as the biggest motive behind opting for managed services, I’ve warned in the report that any relationship with a supplier should not be purely driven by upfront perceived cost savings,’ Longbottom said. ‘Effective cost savings will come through the MSP meeting the business needs against multiple areas, such as high availability and effective information protection. Even so, the market cannot stand still. Moving forward, it will the more integrated, business-focused offerings pulling together more services from around the public cloud while combining the discrete and demonstrable skills of the MSP itself around domain and technical expertise that will raise the bar.’

About MSP Day

In a world where businesses are seeking to do more with less resource, MSP Day 2018 aims to kickstart a movement aimed at tackling this challenge. Creators, distributors and providers of technology can register at mspday.com to show their support and access the full report as well as a helpful toolkit of MSP Day assets.

Ben Lobel

Ben Lobel

Ben Lobel was the editor of SmallBusiness.co.uk from 2010 to 2018. He specialises in writing for start-up and scale-up companies in the areas of finance, marketing and HR.

Related Topics

IT managed services