How do MSPs Future-Proof Their Profitability?

According to our Pulse poll, over 50% of MSPs will use vendor consolidation as their strategy to improve profitability. Future profitability. That’s on the mind of all technology leaders, right?  

But which tactics are best to pursue? Earlier this year we sent a poll asking how MSPs plan to increase their profitability in 2022.

Over one hundred responded. Here are the results: Consolidating vendors (52%), automating processes (44%), adding MDR and other advanced security (32%), expanding product breadth (32%), differentiating from competitors (22%), outsourcing strategies exc: SOC or NOC  (18%), moving more to the cloud (16%), focusing on reputation building (15%) and redifining MSP metrics (2%)

Along with vendor consolidation, MSPs will use automating processes, adding MDR and other advanced security, and expanding product breadth to increase their profitability. These tactics compliment consolidating vendors, and they reveal a shift in what is expected from vendors if they are selected.

Evaluate your vendors. Is your MSP on target with future profitability?

Reduce Overall Future Business Expenses with One Vendor

Gartner predicted that in three years 70% of MSPs and MSSPs will consolidate vendors they work with and shift to a single vendor for their cybersecurity needs.

By moving to one vendor, MSPs will significantly reduce overall business costs. Consider this. With only one vendor bill to pay, you immediately lower internal operation costs. Additionally, your vendor relationship is fortified meaning a stronger negotiation stance and volume pricing. And don’t forget that more product integration can mean fewer connector pieces to purchase.

How to Evaluate the Right Vendor for Your MSP

To successfully evaluate a vendor, assess which cybersecurity services and products are important for current and future client demands. Secure your business in future cyberattacks and deliver operational efficiency by including automation and advanced security in your vendor assessment.

Consequently, using a vendor that unifies all their cybersecurity products and services with one platform will lower your business costs. Only one platform for your staff to learn and monitor. Only one vendor to consult when an issue arises. Not to mention, more controlled environments where data is securely stored.

One vendor, one platform. Integrated solutions mean stronger security, easier deployment, and more efficient operations. Check out our posts on platform consolidation and learn more about why this strategy is reshaping how businesses invest in security. Now you can take the leap to simplified cybersecurity with ONE cohesive, intelligent, cloud-managed platform like WatchGuard's Unified Security Platform.