Going through rising consumer expectations and rising worth strain, 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 companies firm Safari Micro, to speak 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 purchasers quicker and release senior engineers for extra strategic work.
However, whereas automation affords clear advantages, Wallace stresses that with out correct planning and structure, it will possibly create expensive issues additional down the road. From the rising function 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 shall 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?
Usually, you’re coping with purchasers themselves which might be very worth acutely aware at each degree. So for us, one, it creates a little bit of a drive within the aggressive space in opposition to different MSPs, about pricing and companies concerned in that, after which the way you differentiate yourselves from each other.
It looks as if each consumer is at all times in search of an MSP that may present higher companies at a greater worth. In order that they’re at all times looking 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 wish to make it possible for we’re precise consultants in areas and supply service to them, and justify the pricing that we give them.
However irrespective of how knowledgeable you’re, at a sure worth level individuals are not going to go together with you. So we’re in search of methods to automate. We’re in search of methods to templatise, to deliver our prices down once 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 deliver our prices down in order that we are able to cross that on to the consumer.
Are there any specific duties that MSPs are most eager to automate for the time being, and why would that be?
It actually depends upon what their area of interest is. For us, the preliminary onboarding of a consumer and bringing them as much as our requirements is often probably the most time consuming piece. Discovering a solution to automate that course of in order that they’re onboarded quicker, our increased engineers should spend much less time in that course of, then that helps break our prices down, and in order that the onboarding principle may be prolonged out a really very long time relying on what the consumer’s setting 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 executed that?
Sure. We began with the Azure digital desktop aspect. I’ll begin there, after which form of tackle 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 consistently concerned with the method. When you will have these form of engineers with the method, it’s going to be much more expensive for us and for the consumer because of this.
Once we introduced Nerdio In in direction of the top of 2020, we had been already in search of methods to automate a few of these processes, and we had been making an attempt to construct it ourselves. That can also be costly to create these processes ourselves. We came upon Nerdio was already excelling in these areas, so once we introduced them in, they instantly minimize out lots of my time at an architect degree, the place I’m making an attempt to design processes and make it possible for every little thing is coherent, to a sure commonplace that we’ve got. Nerdio actually addressed that. And, for us, particularly on the Digital Desktop aspect, they had been a sport changer in a means that we hadn’t actually seen with some other firm as they’ve grown into fashionable work.
Now we’re seeing lots of the opposite stuff that we cope with for purchasers on the Microsoft 365 aspect, managing mailboxes, SharePoint, Groups and so on – Nerdio has introduced that stuff previously 12 months into their program. We’re beginning to see them form of revolutionise that as properly. So we’re in a position to usher in purchasers and have automated deployments out to all of our purchasers on the similar time, as a substitute of getting to deal with every one individually.
For MSPs early of their Nerdio journey, the place do you see the quickest wins or best areas to drive automation and value 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 setting. So in the event that they’re seeking to deliver their purchasers into the cloud in an Azure setting, Nerdio makes it very fast with very simple onboarding.
If it’s a fully new setting for a consumer, that is the primary time within the cloud customers constructing one thing new. Nerdio simply has a fast walkthrough that helps them arrange a complete setting. Should you’re taking on an setting, it’s additionally a fast walkthrough simply to take over that setting. The tougher half is that if they’re transitioning them from an on-premise setting right into a cloud setting. You continue to have to have individuals like me concerned with the migration structure aspect of it, however when you get by way of 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 expertise or mindsets have gotten extra helpful?
The automation aspect of issues brings the daily work duties which might be concerned in managing the setting down. So the ability set for these individuals generally is a lot decrease. I feel you continue to want your very excessive degree architectural individuals to supervise that. However I feel it reduces lots of the center space, so you’ll be able to have inexperienced individuals introduced into this setting. Nerdio has an excellent coaching program to get them up to the mark. 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 assist the Nerdio setting, 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 associate 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 deal with for lots of organisations. Even Nerdio has had these conversations of how can we incorporate AI into our program?
I feel you’re going to see Microsoft proceed to develop on what AI seems to be like within the fashionable office. They’ve executed 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 associate neighborhood concerned in that course of? A variety of that proper now nonetheless seems to be like, how can we safe environments? How can we take information 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 companies or capabilities that MSPs are nonetheless underutilising — however ought to be leaning right into a bit extra?
Yeah. And that is really one other course that Microsoft is heading in with what they name the adaptable cloud. Not solely do we’ve got Azure within the cloud, and there was this initiative to maneuver everyone to the cloud, however now there’s an initiative to deliver the cloud to the purchasers.
So we’ve got one thing known as Azure Native now, previously Azure Stack HCI. It doesn’t essentially must be all cloud or on premise for purchasers. Now we are able to have a look at possibly transferring 80% of your setting to the cloud. Let’s hold a few of it on premise. What do these workloads appear to be? Can they transfer backwards and forwards? Are they adaptable? That sort of stuff.
I feel 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 a great deal with of the cloud it’s overly costly for them, which is why organisations like Nerdio automation instruments. A part of the attraction is that they assist deliver prices down with automation. However I feel you even have purchasers on the market which might be realising it doesn’t make sense for every little thing 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 feel due to how properly automation instruments work, individuals have a tendency to leap in and so they simply begin constructing stuff. That’s form of the best way within the cloud, typically, Azure makes it virtually deceptively simple simply to begin constructing stuff and producing prices.
Folks overlook structure must be concerned, correct planning and structure, that holistically. You may you can begin constructing a house, and also you may be capable of construct a shack, however it’s in all probability going to crumble on you sooner or later if you happen to don’t take into consideration the precise structure. It’s the identical with these automation instruments within the clouds. Should you don’t have that foundational structure in place, while you go to begin utilising these things, sooner or later it’s going to get too huge, too messy and it’s going to crumble.
What excites you most about the way forward for MSPs and what do you suppose the MSP panorama will appear to be in a couple of years?
I completely love the altering technological panorama. I cherished when AI was launched. I really like the factor of the unknown in there, as a result of it looks as if each new factor that comes out is nearly prefer it’s Christmas morning another time. 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 have now 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 generate profits as a enterprise after which proceed to innovate and assist our purchasers.
That will additionally change our jobs as we transfer ahead. There could also be sure roles that received’t exist sooner or later. Even technological smart, we wouldn’t essentially want an engineer for this. Perhaps that’s changed by AI sooner or later in time, however for the foreseeable future, individuals are nonetheless going to be concerned. It simply relies upon. They might should adapt their roles. I feel being adaptable is enjoyable to me, however it’s additionally scary to lots of people.
Photograph by redcharlie on Unsplash
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