MSPs: Meet The Cloud Revenue Challenge With Security Services

Art Gross
Art Gross

The cloud has cast a shadow over the business of many MSPs.

The steady stream of revenue from traditional hardware and software upgrades, and licensing for SMB customers threaten to be eclipsed by the likes of Amazon and Microsoft, which offer attractive cloud management services that replace the need for an MSPs' cash cow. 

Although an MSP may see short-term revenue spikes in providing services to migrate from on-premise hardware to cloud-based systems, the cloud will gradually erode MSPs' revenues by eliminating the need for installing, maintaining and replacing on-premise hardware and software.

But where there are setbacks, there also lie opportunities.

Last year data breaches reached an all-time high of 783 with an average cost of $3.5 million per breach. Anyone running a business today is aware of cyber risks and is looking for an appropriate mitigation strategy.

Businesses know they need cyber security but they don’t understand it. They don’t have a good way of quantifying the appropriate level of systems and services to employ. And they don’t just want antivirus software on steroids.