Dealing with rising consumer expectations and rising worth strain, managed service suppliers (MSPs) are turning to automation not simply to save cash however to remain aggressive.
At NerdioCon 2025 in La Quinta, California, we caught up with Jeremy Wallace, principal cloud architect at IT providers firm Safari Micro, to speak about how the MSP panorama is evolving. He explains how instruments from the likes of Microsoft cloud administration agency, Nerdio, are serving to MSPs simplify Azure environments, onboard shoppers sooner and release senior engineers for extra strategic work.
However, whereas automation gives clear advantages, Wallace stresses that with out correct planning and structure, it could create pricey issues additional down the road. From the growing function of AI to the rise of hybrid cloud, Wallace shares his perspective on the place MSPs ought to focus subsequent, what errors to keep away from and why adaptability will probably be key to success within the years forward.
How would you describe the present financial pressures going through MSPs, and the way is that altering conversations round automation and effectivity?
Usually, you’re coping with shoppers themselves which might be very worth aware at each degree. So for us, one, it creates a little bit of a drive within the aggressive space towards different MSPs, about pricing and providers concerned in that, after which the way you differentiate yourselves from each other.
It looks like each consumer is at all times in search of an MSP that may present higher providers at a greater worth. So that they’re at all times searching for completely different firms in that space. For us, we’ve needed to actually outline what’s the differentiator. How are we completely different from different MSPs? It’s turn into about simply high quality. For our firm, particularly, we wish to guarantee that we’re precise consultants in areas and supply service to them, and justify the pricing that we give them.
However irrespective of how knowledgeable you might be, at a sure worth level individuals are not going to go together with you. So we’re in search of methods to automate. We’re in search of methods to templatise, to convey our prices down after we’re working with them. Despite the fact that we do have the consultants, we’re looking for methods, whether or not it’s AI, whether or not it’s automation platforms, to convey our prices down in order that we are able to go that on to the consumer.
Are there any specific duties that MSPs are most eager to automate for the time being, and why would that be?
It actually will depend on what their area of interest is. For us, the preliminary onboarding of a consumer and bringing them as much as our requirements is normally probably the most time consuming piece. Discovering a option to automate that course of in order that they’re onboarded sooner, our larger engineers should spend much less time in that course of, then that helps break our prices down, and in order that the onboarding principle may be prolonged out a really very long time relying on what the consumer’s setting is. So the extra we are able to automate that, the extra that we are able to throw out we have already got pre designed templates and issues like that, the sooner that’s for us.
Nerdio appears to suppose it’s modified the sport for MSPs managing Microsoft Azure environments. Do you agree? And the way has it executed that?
Sure. We began with the Azure digital Desktop facet. I’ll begin there, after which form of handle how they’ve grown. We tried doing Azure Digital Desktop and Azure Administration earlier than Nerdio, and it did take a excessive diploma of engineers that wanted to be consistently concerned with the method. When you could have these form of engineers with the method, it’s going to be much more pricey for us and for the consumer consequently.
After we introduced Nerdio In in direction of the top of 2020, we had been already in search of methods to automate a few of these processes, and we had been attempting to construct it ourselves. That can also be costly to create these processes ourselves. We came upon Nerdio was already excelling in these areas, so after we introduced them in, they instantly lower out a variety of my time at an architect degree, the place I’m attempting to design processes and guarantee that every little thing is coherent, to a sure customary that we have now. Nerdio actually addressed that. And, for us, particularly on the Digital Desktop facet, they had been a recreation changer in a manner that we hadn’t actually seen with another firm as they’ve grown into trendy work.
Now we’re seeing a variety of the opposite stuff that we cope with for shoppers on the Microsoft 365 facet, managing mailboxes, SharePoint, Groups and so on – Nerdio has introduced that stuff prior to now yr into their program. We’re beginning to see them form of revolutionise that as effectively. So we’re ready to usher in shoppers and have computerized deployments out to all of our shoppers on the identical time, as a substitute of getting to deal with every one individually.
For MSPs early of their Nerdio journey, the place do you see the quickest wins or best areas to drive automation and price financial savings?
In all probability the best one is on the Azure. That’s the facet they begin out with. It’s finally the strongest of their setting. So in the event that they’re trying to convey their shoppers into the cloud in an Azure setting, Nerdio makes it very fast with very simple onboarding.
If it’s a fully new setting for a consumer, that is the primary time within the cloud customers constructing one thing new. Nerdio simply has a fast walkthrough that helps them arrange a whole setting. When you’re taking on an setting, it’s additionally a fast walkthrough simply to take over that setting. The tougher half is that if they’re transitioning them from an on-premise setting right into a cloud setting. You continue to must have individuals like me concerned with the migration structure facet of it, however when you get by means of that preliminary transfer to the cloud, Nerdio makes it simple for them to remain within the cloud.
How are roles inside MSPs evolving due to automation instruments like Nerdio? What expertise or mindsets have gotten extra precious?
The automation facet of issues brings the day after day work duties which might be concerned in managing the setting down. So the ability set for these individuals could be a lot decrease. I believe you continue to want your very excessive degree architectural individuals to supervise that. However I believe it reduces a variety of the center space, so you possibly can have inexperienced individuals introduced into this setting. Nerdio has an excellent coaching program to get them on top of things. We’ve had engineers that we introduced on that had no Digital Desktop, no Azure background. We introduced them to the Nerdio coaching after which they can help the Nerdio setting, as a result of Nerdio has introduced that threshold down.
The place do you see Microsoft’s cloud ecosystem heading subsequent by way of accomplice alternative?
I’m a Microsoft MVP, and I used to be simply on the Redmond campus about two weeks in the past. It’s very apparent that AI has turn into the subject to concentrate on for lots of organisations. Even Nerdio has had these conversations of how will we incorporate AI into our program?
I believe you’re going to see Microsoft proceed to develop on what AI appears like within the trendy office. They’ve executed that with Co-pilot, they usually’re persevering with to evolve Co-pilot and Co-pilot brokers, and make AI an on a regular basis common a part of our lives.
So what’s the subsequent step from there? What’s the subsequent evolution of AI? And the way is our accomplice group concerned in that course of? Plenty of that proper now nonetheless appears like, how will we safe environments? How will we take information and make it one thing that may be ingested in AI? However I actually suppose we nonetheless haven’t fairly scratched the floor on the place’s the true final worth of AI. The place does AI finally begin making organisations cash and issues like that.
Are there particular Azure providers or capabilities that MSPs are nonetheless underutilising — however must be leaning right into a bit extra?
Yeah. And that is really one other course that Microsoft is heading in with what they name the adaptable cloud. Not solely do we have now Azure within the cloud, and there was this initiative to maneuver all people to the cloud, however now there’s an initiative to convey the cloud to the shoppers.
So we have now one thing known as Azure Native now, previously Azure Stack HCI. It doesn’t essentially should be all cloud or on premise for shoppers. Now we are able to have a look at perhaps shifting 80% of your setting to the cloud. Let’s preserve a few of it on premise. What do these workloads appear to be? Can they transfer forwards and backwards? Are they adaptable? That kind of stuff.
I believe we’ll proceed to see a hybrid cloud be a spotlight in Azure, as individuals are beginning to realise that in the event that they don’t have an excellent deal with of the cloud it’s overly costly for them, which is why organisations like Nerdio automation instruments. A part of the enchantment is that they assist convey prices down with automation. However I believe you even have shoppers on the market which might be realising it doesn’t make sense for every little thing to be within the cloud. So Microsoft’s answering that with this Azure Native resolution.
What errors do you see MSPs generally make, particularly when approaching automation — and the way can they keep away from them?
I believe due to how effectively automation instruments work, individuals have a tendency to leap in they usually simply begin constructing stuff. That’s form of the way in which within the cloud, basically, Azure makes it virtually deceptively simple simply to start out constructing stuff and producing prices.
Folks overlook structure must be concerned, correct planning and structure, taking a look at that holistically. You may you can begin constructing a house, and also you would possibly be capable of construct a shack, but it surely’s most likely going to disintegrate on you sooner or later for those who don’t take into consideration the precise structure. It’s the identical with these automation instruments within the clouds. When you don’t have that foundational structure in place, if you go to start out utilising these items, sooner or later it’s going to get too large, too messy and it’s going to disintegrate.
What excites you most about the way forward for MSPs and what do you suppose the MSP panorama will appear to be in a number of years?
I completely love the altering technological panorama. I liked when AI was launched. I really like the component of the unknown in there, as a result of it looks like each new factor that comes out is nearly prefer it’s Christmas morning another time. There’s one thing new to play with.
It additionally scares the heck out of lots of people, seeing all these new issues and people unknowns. However I actually suppose it drives us to raise. We now have to determine how we use these applied sciences, whether or not it’s AI and Co-pilot, whether or not it’s different automation platforms, and the way we are able to use this to make cash as a enterprise after which proceed to innovate and assist our shoppers.
Which will additionally change our jobs as we transfer ahead. There could also be sure roles that received’t exist sooner or later. Even technological clever, we wouldn’t essentially want an engineer for this. Perhaps that’s changed by AI sooner or later in time, however for the foreseeable future, individuals are nonetheless going to be concerned. It simply relies upon. They could should adapt their roles. I believe being adaptable is enjoyable to me, but it surely’s additionally scary to lots of people.
Photograph by redcharlie on Unsplash
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