Going through rising shopper expectations and rising value stress, 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 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 unlock senior engineers for extra strategic work.
However, whereas automation presents clear advantages, Wallace stresses that with out correct planning and structure, it might probably create pricey issues additional down the road. From the growing position 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 dealing with MSPs, and the way is that altering conversations round automation and effectivity?
Basically, 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 as if each shopper is all the time on the lookout for an MSP that may present higher providers at a greater value. So that they’re all the time purchasing for totally different corporations in that space. For us, we’ve needed to actually outline what’s the differentiator. How are we totally different from different MSPs? It’s turn into about simply high quality. For our firm, particularly, we need 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 professional you might be, at a sure value level individuals are not going to go together with you. So we’re on the lookout for methods to automate. We’re on the lookout for methods to templatise, to carry 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 carry our prices down in order that we are able to move that on to the shopper.
Are there any specific duties that MSPs are most eager to automate in the mean time, and why would that be?
It actually will depend on what their area of interest is. For us, the preliminary onboarding of a shopper and bringing them as much as our requirements is often probably the most time consuming piece. Discovering a option to automate that course of in order that they’re onboarded quicker, our increased engineers need to 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 shopper’s surroundings 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 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 aspect. I’ll begin there, after which type 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 continuously concerned with the method. When you may have these type of engineers with the method, it’s going to be much more pricey for us and for the shopper in consequence.
After we introduced Nerdio In in direction of the tip 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 discovered Nerdio was already excelling in these areas, so after we introduced them in, they instantly reduce out a number of my time at an architect stage, the place I’m attempting to design processes and guarantee that the whole lot is coherent, to a sure customary that we now have. Nerdio actually addressed that. And, for us, particularly on the Digital Desktop aspect, they have been a sport changer in a approach that we hadn’t actually seen with another firm as they’ve grown into trendy work.
Now we’re seeing a number of the opposite stuff that we cope with for shoppers on the Microsoft 365 aspect, managing mailboxes, SharePoint, Groups and so forth – Nerdio has introduced that stuff prior to now 12 months into their program. We’re beginning to see them type of revolutionise that as nicely. So we’re in a position to usher in shoppers and have automated deployments out to all of our shoppers on the similar time, as an alternative of getting to deal with each 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 simplest one is on the Azure. That’s the aspect they begin out with. It’s in the end the strongest of their surroundings. So in the event that they’re seeking to carry their shoppers into the cloud in an Azure surroundings, Nerdio makes it very fast with very simple onboarding.
If it’s a fully new surroundings for a shopper, 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. In case you’re taking on 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 folks like me concerned with the migration structure aspect of it, however when you get via 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 abilities or mindsets have gotten extra worthwhile?
The automation aspect of issues brings the everyday work duties which can be concerned in managing the surroundings down. So the ability set for these folks generally is a lot decrease. I believe you continue to want your very excessive stage architectural folks to supervise that. However I believe it reduces a number of the center space, so you may have inexperienced folks 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 can 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 when it comes to 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 can 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 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 accomplice neighborhood concerned in that course of? Loads of that proper now nonetheless appears like, how can we safe environments? How can we take knowledge 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 really one other route that Microsoft is heading in with what they name the adaptable cloud. Not solely do we now have Azure within the cloud, and there was this initiative to maneuver all people to the cloud, however now there’s an initiative to carry the cloud to the shoppers.
So we now have one thing known as Azure Native now, previously Azure Stack HCI. It doesn’t essentially have to be all cloud or on premise for shoppers. Now we are able to take a look at perhaps shifting 80% of your surroundings 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 sort 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 carry prices down with automation. However I believe you even have shoppers on the market which can be realising it doesn’t make sense for the whole lot 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 nicely automation instruments work, folks have a tendency to leap in and so they simply begin constructing stuff. That’s type of the best way within the cloud, generally, Azure makes it virtually deceptively simple simply to start out constructing stuff and producing prices.
Individuals neglect structure must be concerned, correct planning and structure, that holistically. You possibly can you can begin constructing a house, and also you would possibly have the ability to construct a shack, nevertheless it’s in all probability going to disintegrate on you in some unspecified time in the future when you don’t take into consideration the precise structure. It’s the identical with these automation instruments within the clouds. In case you don’t have that foundational structure in place, while you go to start out utilising these items, in some unspecified time in the future it’s going to get too massive, 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 just a few years?
I completely love the altering technological panorama. I beloved when AI was launched. I really like the aspect of the unknown in there, as a result of it looks as if each new factor that comes out is sort of prefer it’s Christmas morning once more. 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’ve 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 earn money 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 gained’t exist sooner or later. Even technological sensible, we wouldn’t essentially want an engineer for this. Possibly that’s changed by AI in some unspecified time in the future in time, however for the foreseeable future, individuals are nonetheless going to be concerned. It simply relies upon. They might need to adapt their roles. I believe being adaptable is enjoyable to me, nevertheless it’s additionally scary to lots of people.
Photograph by redcharlie on Unsplash
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