LOGICnow Survey: MSPs Heading for Data-Driven Automation Revolution


The opportunity for MSPs to use data technologies and tools is still largely untapped and it represents a significant competitive advantage, according to a new global study by LOGICnow, now SolarWinds MSP.

LOGICnow's Dave SobelThe results are based on a survey of more than 350 MSPs across the United States, the United Kingdom, Europe and Asia Pacific. Results show that the MSP community is on the “cusp of a massive shift towards data-driven automation … fueled by the widespread recognition of its importance and commercial potential, and the fear of losing ground to early adopters who are already enjoying measurable commercial benefits.”

Dave Sobel, LOGICnow’s senior director of community and field marketing, tells Channel Partners that while 44 percent of IT service management (ITSM) providers or MSPs are using some form of data automation, only 8 percent of them are making use of that data to drive business insights.

“Those early adopters are reaping huge benefits, with 100-percent return on investment and the ability to see their businesses in new ways (with deeper insight into things like customer performance) that drive huge business value,” he said. “I was most surprised by the fact that 21 percent of the early adopters receiving 100 percent or more return on their investment. Typically, as an early adopter, you would expect this to be a learning curve and a long term investment. However, this fact is extremely encouraging.”{ad}

Other quantified benefits for companies using automation include 38 percent seeing client-servicing capacity at least double and 72 percent now are able to service more complex IT estates.

Of those that have not yet deployed data-driven automation strategies (92 percent):

  • Nearly 75 percent believe that doing so will allow them to deliver a range of new services, while 49 percent believe that it is a route to offer more sophisticated services and win more business.
  • Eighty-five percent believe it will give them a competitive advantage, and 52 percent actively fear they will lose out to more advanced competition if they do not adopt automation.
  • Six percent believe either late or no adoption will lead to them going out of business within two years.

“Deploying data-driven automation strategies represents a natural evolution moving beyond a single engineer to community driven collective intelligence, allowing machine learning to offer actionable, prescriptive analytics,” Sobel said. “This means individual engineers can support a higher density of customers and focus more on business outcomes versus worrying so much about day to day operations.”

The early adopters are being watched closely to see how this all plays out, he said.

“As this survey shows, there is a rapidly growing recognition that data driven automation represents a significant opportunity, and indeed, 88 percent of survey respondents predict that with it, they will be able to serve more clients, with 21 percent going so far as to say they could at least double their capacity,” Sobel said.

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