Bluebird IT explains the MSP service market

Managed services are skilled outsourcing functions that transfer in-house functionalities to be managed by third party managed service provider (MSP). The managed services market is witnessing accelerated growth in recent years due to the advancements in cloud computing, big data and mobility services. Such outsourced services enable organisations to bring in competences that they lack or to replace functions or processes that incurred huge recurring costs.

According to Research and Market (2015) managed services reduce the recurring in-house IT costs by 30-40% and bring about 50-60% increase in efficiency. The same report suggest global managed services market is expected to grow from $107.17 billion in 2014 to $193.34 billion by 2019, at an estimated CAGR of 12.5% from 2014 to 2019.

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The market is clearly growing, and whether, as a service provider, you are providing security, analytics, storage or any other service to any industry, there is one key initiative that stands…differentiation! How can I, as a service provider, offer a revenue generating service that is unique? If not unique, how can I offer qualities above that of my competitors by better utilising the technology that underpins the service?

Lets explore the case of a European MSP that identified secure data transfer (as a service) into tier 2 financial service organisations as a profitable niche. Offering a highly secure, governed and flexible batch file transfer infrastructure that complies with PCI DSS and other key regulations provides an opportunity for differentiation and a potential dominance of the market.

Their choice of technology was based on security and governance capabilities, as well as the ability to easily onboard new customers to the service with a trusted advisor that has experience in designing PCI compliant file gateway infrastructures. Their choice of advisor was key as the relationship would enable a strategic expansion of the managed service across geographies, if successful. This partner will also offer an SLA driven support centre to ensure any challenges with the service can be rectified, keeping the reputation strong and ensuring regular revenue by differentiating the quality of the service.

the one of a kind, differentiated service will be launch in January 2016

Having chosen the best of breed secure file transfer technology and a partner with over 25 years of experience, the one of a kind, differentiated service will be launched in January 2016. This one of a kind, differentiated, premium service into a niche, yet profitable vertical achieves the key use case for any MSP. So why not look at a trusted partner as the first step on your differentiation journey? Such a service would be rapidly consumed in the manufacturing or logistics verticals, and all that is left is for an MSP to take up the proven technology, with a proven partner and provide a unique business model.

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