Dealing with rising consumer expectations and rising value strain, managed service suppliers (MSPs) are turning to automation not simply to economize 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 talk 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 quicker 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 possibly create expensive issues additional down the road. From the rising 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?
On the whole, you’re coping with shoppers themselves which can be very value aware at each stage. 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 all the time on the lookout for an MSP that may present higher providers at a greater value. In order that they’re all the time 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 develop into about simply high quality. For our firm, particularly, we wish to make it possible for we’re precise consultants in areas and supply service to them, and justify the pricing that we give them.
However regardless of how skilled you’re, at a sure value level persons are not going to go along with you. So we’re on the lookout for methods to automate. We’re on the lookout for methods to templatise, to deliver 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 deliver our prices down in order that we will move 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 relies 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 technique to automate that course of in order that they’re onboarded quicker, our greater engineers must spend much less time in that course of, then that helps break our prices down, and in order that the onboarding principle could be prolonged out a really very long time relying on what the consumer’s surroundings is. So the extra we will automate that, the extra that we will throw out we have already got pre designed templates and issues like that, the quicker 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 carried out that?
Sure. We began with the Azure digital Desktop facet. I’ll begin there, after which sort of deal with 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 always concerned with the method. When you will have these sort of engineers with the method, it’s going to be much more expensive for us and for the consumer in consequence.
After we introduced Nerdio In in direction of the top of 2020, we have been already on the lookout for methods to automate a few of these processes, and we have been attempting to construct it ourselves. That can 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 minimize out a number of my time at an architect stage, the place I’m attempting to design processes and make it possible for all the pieces is coherent, to a sure customary that we’ve got. Nerdio actually addressed that. And, for us, particularly on the Digital Desktop facet, they have been a recreation changer in a manner that we hadn’t actually seen with another firm as they’ve grown into fashionable work.
Now we’re seeing a number of the opposite stuff that we take care of for shoppers on the Microsoft 365 facet, managing mailboxes, SharePoint, Groups and many others – Nerdio has introduced that stuff prior to now yr into their program. We’re beginning to see them sort of revolutionise that as properly. So we’re ready to herald 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?
Most likely the best one is on the Azure. That’s the facet they begin out with. It’s in the end the strongest of their surroundings. So in the event that they’re seeking to deliver their shoppers into the cloud in an Azure surroundings, Nerdio makes it very fast with very straightforward onboarding.
If it’s a completely new surroundings 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 surroundings. When you’re taking up an surroundings, it’s additionally a fast walkthrough simply to take over that surroundings. The more durable half is that if they’re transitioning them from an on-premise surroundings right into a cloud surroundings. 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 straightforward for them to remain within the cloud.
How are roles inside MSPs evolving due to automation instruments like Nerdio? What abilities or mindsets have gotten extra beneficial?
The automation facet of issues brings the each day work duties which can be concerned in managing the surroundings down. So the talent set for these individuals is usually a lot decrease. I believe you continue to want your very excessive stage architectural individuals to supervise that. However I believe it reduces a number of the center space, so you may have inexperienced individuals introduced into this surroundings. 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’re able to help the Nerdio surroundings, as a result of Nerdio has introduced that threshold down.
The place do you see Microsoft’s cloud ecosystem heading subsequent by way of associate 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 develop into the subject to give attention to for lots of organisations. Even Nerdio has had these conversations of how can we incorporate AI into our program?
I believe you’re going to see Microsoft proceed to develop on what AI seems like within the fashionable office. They’ve carried out that with Co-pilot, and so they’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 following step from there? What’s the following evolution of AI? And the way is our associate neighborhood concerned in that course of? A number of that proper now nonetheless seems like, how can we safe environments? How can 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 in the end 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 truly one other route that Microsoft is heading in with what they name the adaptable cloud. Not solely do we’ve got Azure within the cloud, and there was this initiative to maneuver all people to the cloud, however now there’s an initiative to deliver the cloud to the shoppers.
So we’ve got one thing referred to as Azure Native now, previously Azure Stack HCI. It doesn’t essentially should be all cloud or on premise for shoppers. Now we will take a look at possibly shifting 80% of your surroundings to the cloud. Let’s maintain a few of it on premise. What do these workloads seem like? Can they transfer backwards and forwards? Are they adaptable? That sort of stuff.
I believe we’ll proceed to see a hybrid cloud be a spotlight in Azure, as persons are beginning to realise that in the event that they don’t have a great deal with of the cloud it’s overly costly for them, which is why organisations like Nerdio automation instruments. A part of the attraction is that they assist deliver prices down with automation. However I believe you even have shoppers on the market which can be realising it doesn’t make sense for all the pieces to be within the cloud. So Microsoft’s answering that with this Azure Native answer.
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 properly automation instruments work, individuals have a tendency to leap in and so they simply begin constructing stuff. That’s sort of the best way within the cloud, normally, Azure makes it nearly deceptively straightforward simply to start out constructing stuff and producing prices.
Folks overlook structure must be concerned, correct planning and structure, that holistically. You may you can begin constructing a house, and also you would possibly be capable to construct a shack, but it surely’s in all probability going to disintegrate on you in some unspecified time in the future 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, in some unspecified time in the future it’s going to get too huge, 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 seem like in just a few years?
I completely love the altering technological panorama. I liked when AI was launched. I really like the aspect of the unknown in there, as a result of it looks like each new factor that comes out is sort of prefer it’s Christmas morning yet again. 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 have now 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 will use this to make cash as a enterprise after which proceed to innovate and assist our shoppers.
That will additionally change our jobs as we transfer ahead. There could also be sure roles that gained’t exist sooner or later. Even technological clever, we wouldn’t essentially want an engineer for this. Perhaps that’s changed by AI in some unspecified time in the future in time, however for the foreseeable future, persons are nonetheless going to be concerned. It simply relies upon. They might must adapt their roles. I believe being adaptable is enjoyable to me, but it surely’s additionally scary to lots of people.
Picture by redcharlie on Unsplash
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