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Phylip Morgan, Chief Revenue Officer at Pax8, explains the evolution of software deployment, the impact that new and emerging technology will have in the future and the invaluable role that MSPs will play in reshaping the Channel.
Over the years, the Channel has always provided organisations with ways to innovate and procure new and groundbreaking technologies and solutions. What started out as a somewhat simple process for businesses to browse, acquire and implement solutions (electronic catalogues, E-commerce Platforms and such like) has now evolved into a far more complex process following the rise of new technology, customer adoption models and changes in user behaviour.
While the sector is clearly moving at some pace and experiencing success like never before, differing strategies from leading vendors coupled with a plethora of different buying options and solutions available, MSPs are being left behind when they are in fact the gatekeepers to future success.
The software deployment landscape in a nutshell
Looking at the delivery of software and solutions over time, it’s clear to see the massive advances that have been made. From downloading and installing software from historic hardware such as the floppy disc and CD, the landscape eventually shifted to licensed software and now the rise of subscription-based models that have grown in popularity and are being demanded by SMBs that want a more consumer-based experience. So much so that almost every sector and industry has now adopted this approach, in part due to customer behaviour shifting toward monthly payments. Whether it’s a coffee, gym or wellbeing subscription, or choosing to pay your car insurance month by month, this model has now become the norm.
Like with all other sectors, the Channel has also had to embrace this model. While this has clear benefits to support innovation and changes in customer needs, it also presents its own challenges. There are now multiple implementation journeys that IT professionals and businesses can take. Although this adds variety and additional scope for customisation, it adds an extra layer of complexity to the buying decision and can impact overall adoption, especially for organisations new in their digital transformation journeys. Historically, we’ve transitioned from selling hardware and adding software, to offering hardware and bolting on cloud subscriptions
This has been flipped on its head in the modern day. From leading on hardware and selling software as an option to a 50/50 hybrid approach, today, vendors, VARs and some of the fastest growing MSPs are now providing cloud-based subscription services on demand, with the conversations around hardware now taking place secondarily and often separately.
A fragmented Channel leaving MSPs behind
The challenges we’re facing right now is that the market is very mature and both options exist from a hardware and software implementation perspective. Take the decision-making process for the modern citizen arriving at a train station. Do you queue up for a taxi or fire up your smart phone and order an Uber or Bolt? The preferences can vary due to several factors such as age, demographic or level of digital maturity. Some industry commentators have suggested that the Channel is broken but this isn’t the case, it’s simply fragmented. There are different systems that work in different ways and the leading providers are in the midst of exploring differing market strategies. In the middle of this are the MSPs who are innovating and helping businesses revolutionise their offerings. By listening to MSPs and understanding that they need more help from vendors, whether it’s enhancing integrations with other platforms and providers or understanding the use of AI, all this will positively impact the SMBs and start-ups that they serve.
The focus around technology needs to transition from discussing IT support, cloud offerings and more around outcomes that can drive the business evolution for SMBs. The key priorities span across three areas: driving business growth, increasing operational efficiency and reducing risk. That’s why we introduced the Pax8 Marketplace to integrate the Channel by helping partners, vendors and MSPs seamlessly navigate the market, and simplify processes where possible. By connecting organisations to a partner community of nearly 40,000, with access to leading experts, MSPs will not only see future growth potential but also get the chance to partner with like-minded providers. Collaborating with others on a similar journey to success provides many benefits as well as being able to connect with leading experts to improve knowledge around key topics such as AI and cyber security.
The role of MSPs and the future of technology
As the landscape continues to evolve, MSPs will become more like business consultants than technology providers, well-connected and working in collaboration with many different organisations and partners. They will be helping and advising organisations around the three key pillars of people, process and technology, which are important steps to meet in the delivery of any solution, or service, across an organisation. The focus will be delivering a business outcome not a technology solution.
Just like the dot-com bubble that soared in the late 90s and led to the eventual introduction of the World Wide Web and the Internet, the recent rise of AI and emerging tech is certainly going to reshape our world as we know it. The future is quite polarised but there is likely to be some disruption in sight with AI. Arguably one of the biggest disruptions caused by the Internet was the Uber and Black Cab protests in London. Like this, it will be quite the revolution. We will have the power and ability to control AI, but humans and technology must learn to grow together. The future that I see in the next two to three years will be the gradual decline of the call centre and such help-desk type services. We’re already seeing the utilisation of chatbots and automation for information gathering across multiple sectors – this will only continue.
We are already proving the value of humans working hand-in-hand with technology to bring huge efficiencies to organisations and their employees. It has the power to make meaningful differences and ultimately improve how we live our lives. What’s clear is the innovation we’ve seen over the past 12 months has influenced the delivery and implementation of software and solutions across the Channel. If the sector can focus on unification and integration (APIs and workflow connectivity) and continue exploring the community collaboration alongside the Pax8 Marketplace as a core channel, we can better connect and support MSPs. As a result, organisations of all sizes will begin to see the true benefits and help their customers grow and succeed like never before.
