In the coming weeks, IT organizations will be turning to managed service providers (MSPs) to help them optimize their existing investments during this period of uncertainty. Historically, when faced with economic challenges, IT organizations have focused on two key areas: maximizing the utilization of their current IT infrastructure and modernizing applications. This presents a valuable opportunity for collaboration and innovation.
Unlocking efficiency
Most of the IT infrastructure employed in on-premises and cloud computing environments is over-provisioned. Many application developers prioritize keeping applications always available, even if they overspend on unnecessary compute and memory resources. The last few years have seen the rise of FinOps as a set of best practices that provides a structured approach to enabling organizations to address that issue, but adoption of this methodology remains uneven. Given the need to maximize the value of existing IT infrastructure resources, more organizations will undoubtedly look to MSPs to help them implement best FinOps practices.
The second area of focus will be ensuring that existing applications run as optimally as possible. The phases of application modernization span everything from conducting audits to determine what software is running to refactoring code in a way that reduces the amount of IT infrastructure needed to run an application. These efforts typically require MSPs to possess a substantial amount of software engineering expertise. Still, the profit margins generated by these types of consulting engagements usually provide high returns on that investment.
Weathering the economic storm
Many MSPs have a unique opportunity to pivot towards offerings that require less upfront investment from customers. As organizations seek to preserve capital during uncertain times, MSPs can focus on initiatives that help reduce overall IT spending while maximizing value.
On a positive note, demand for managed services often thrives in varying economic conditions. When the economy is strong, organizations may hire more full-time employees, but during challenging times, there is a greater emphasis on efficiency and doing more with less. This shift typically leads organizations to rely more on externally managed services to fill gaps and enhance their operations.
By proactively engaging in conversations with their customers, MSPs can help minimize disruption and foster stronger partnerships. While no one can predict economic trends with certainty, it’s natural for business executives to exercise caution during uncertain times. Organizations will prioritize projects that support revenue flow, creating opportunities for MSPs to provide essential support.
With optimism for a swift resolution to current anxieties, MSPs should prepare for various scenarios while striving for the best possible outcomes. This proactive approach will position them as valuable partners in navigating the future.
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