The cloud may spell trouble for MSPs

Technological advancement, while improving how most go about their daily lives, inevitably leads to older technologies and services becoming obsolete. According to Channel Insider, this may very well be the case for managed service providers.

The main reason for the predicted downturn can be attributed to the cloud's virtualization. Because the platfom is becoming ever more popular, a greater number of businesses are adopting the cloud and outsourcing IT to cloud providers. This directly affects the business for MSPs who specialize in fixing and monitoring computing systems at their physical sites. This "cornerstone of the MSP model" is challenged by virtualized software, and if MSPs cannot account for the technological evolution they may soon fail, reports the news source.

The media organization claims that there will still be a role for "remote monitoring" MSPs. However, firms who make this service their main enterprise option are in trouble of becoming irrelevant in the face of the cloud.

However, MSPs that embrace the cloud and expand their service roles may be able to grow with the new technology. According to CRN technology news, the computing industry as a whole grew by 12 percent in the last year, and forward-thinking MSPs can easily cash in on the current cloud craze if they adjust their business strategies accordingly.