ChannelLife New Zealand logo
Industry insider news for New Zealand's technology resellers
Story image

2018 forecast: Opportunities abound but MSPs will be sacked due to security

By Ashton Young
Fri 8 Dec 2017
FYI, this story is more than a year old

The new year is upon us, which brings about the question what can we expect?

Continuum has garnered insights from a number of its executives that touch on:

  • The #1 reason MSPs will be fired in 2018
  • SMBs, the cloud and GDPR in 2018
  • Next year’s challenge: IT complexity
  • Where MSPs will find their greatest opportunities for growth and margins
Michael George, CEO of Continuum

In 2018, the number one reason that service providers will be fired by their end-customers and a new one will be hired will be security. 

Clients expect that their service providers are taking every necessary step to secure them against cyberthreats. But, an escalating threat landscape means that there is a new set of attack vectors that those clients aren’t prepared for and a growing portfolio of security tools that they’re not paying for.

Service providers are going to face difficult conversations with their clients, in which they need to explain how the threat has changed and what the clients now need to be protected. These will be challenging, but with the marketplace rapidly retooling and retraining to meet this demand, these service providers must either face the difficult conversation or face being unseated by a more capable rival.

Service providers seeking the opportunity to be acquired in 2018 need to focus on their sales ability, or avoid getting caught in an M&A ‘no-man’s-land.’

Acquirers are now paying a premium for providers that have either a sales capacity or a cost-effective service delivery capacity. If a provider isn’t excelling at either, they’ll be left in no-man’s-land and will struggle to survive in a market that’s consolidating at a rapid pace.

Providers need to shift their organizational focus and economics from service delivery to becoming better in-tune with their market and selling against their needs, or they could struggle to survive beyond 2019.

Fielder Hiss, vice president of Product at Continuum

There will be fewer servers on-premise in 2018.

Expect to see more SMBs move more servers to the cloud because they think it is safer, less expensive and more reliable. However, at the same time, they see more attacks to clouds and feel they now become a target – even though they have been a target already.

I’m hearing from partners that clients are getting scared and ask for non-public cloud options. That means we will see an increase in CoLo scenarios and partners starting their own DCs while the rest moves to the public cloud. Also, more software vendors will offer SaaS solutions.

With the reality of GDPR coming, the requirements for companies of all sizes are going to get real around compliance.

New security regulations will increase the need for secure software – not just security products but all products being more secure. Things like 2 Factor Authentication and Identity Management will be requested for existing products.

Randy Bowie, vice president of Backup products & Engineering at Continuum

A major challenge SMBs will face in 2018 is complexity, as many of the applications small business use are moving to the cloud.

That means access from anywhere, which is great, but it also can mean more accounts to keep up with and data spanning from the cloud to on-premise.  At least for now, that means more to manage and more to protect.

This year we saw more cloud-based disaster recoveries than ever in the history of BDR at Continuum. This was driven by natural disasters at a time when small business is more dependent on IT than ever. I think we will see this trend continue in 2018, as cloud disaster recovery is a necessity for a growing number of businesses. Backup of cloud-based services, such as e-mail and productivity applications will continue growing as these applications continue moving off premise.

Tasos Tsolakis, senior vice president of Global Service Delivery at Continuum

Cyber disaster recovery services and cyber security services will have the highest growth and highest margins for the MSPs.

Data migration from existing hosted applications to cloud offering other than Office 365 will become significant by the end of 2018. International markets will see growth in the traditional MSP services space and will lag the U.S. market in the cloud service offerings.

On the other hand, international will have similar demand to the US market on cybersecurity services. The international market had worse experiences with malware in 2017 than the US market and demand for security prevention, detection and remediation services will increase in 2018.

In the new year, MSPs will also have the opportunity to offer consulting services and migration services for the cloud solutions with higher margins than their existing RMM offerings. Focusing on specific vertical markets will be critical to the MSPs success.

Related stories
Top stories
Story image
Vectra AI
Understanding the weight on security leader’s shoulders, and how to shift it
Millions of dollars of government funding and internal budgets are being funnelled into cybersecurity to build resilience against sophisticated threats, indicating how serious this issue has become.
Story image
SaaS
Maintaining secure systems with expectations of flexible work
Most office workers feel they've proved they can work successfully from home, and as much as employers try, things aren't going back to the way they were anytime soon.
Story image
Ransomware
Alarming surge in Conti Ransomware Group activity - report
A new report has identified a 7.6 per cent increase in the number of vulnerabilities tied to ransomware in Q1 2022.
Story image
ChildFund
ChildFund launches new campaign to protect children online
ChildFund says WEB Safe & Wise aims to protect children from sexual exploitation and abuse online while also empowering them to become digitally savvy. 
Story image
Nozomi Networks
Nozomi Networks, Siemens reveal software integration
Nozomi Networks and Siemens have extended their partnership by embedding Nozomi Networks’ software into the Siemens Scalance LPE local processing engine.
Story image
Cloud Security
Aqua Security createa unified scanner for cloud native security
“By integrating more cloud native scanning targets into Trivy, such as Kubernetes, we are simplifying cloud native security."
Story image
Gaming
Hands-on review: WD_Black SN770 NVMe SSD Game Drive
Western Digital expands its WD_Black range of NVMe SSDs with the WD_Black SN770 Game Drive.
Story image
Artificial Intelligence
SAS unveils AI experience to improve kids' batting abilities
SAS has created The Batting Lab, an interactive experience using AI, computer vision and IoT analytics to help kids improve their baseball and softball swings.
Story image
Digital Transformation
How to modernise legacy apps without compromising security
At a time when digital transformation has become central to business, even the most important applications come with a ‘use-by’ date.
Story image
Microsoft
PwC NZ unveils new Cloud Security Operations Center
PwC New Zealand has unveiled its new Cloud Security Operations Center for the entire Microsoft technology stack.
Story image
Cybersecurity
The 'A-B-C' of effective application security
Software applications have been a key tool for businesses for decades, but the way they are designed and operated has changed during the past few years.
Story image
Lightspeed
Lightspeed launches all-in-one marketing platform in A/NZ
ECommerce provider, Lightspeed has launched a new all-in-one marketing solution, Lightspeed Marketing & Loyalty in Australia and New Zealand.
Story image
Sustainability
Legrand unveils Nexpand, a data center cabinet platform
Legrand has unveiled a new data center cabinet platform, Nexpand, to offer the necessary scalability and future-proof architecture for digital transformation.
Story image
Digital Transformation
Pluralsight and Ingram Micro Cloud team up on cloud initiative
Pluralsight has teamed with Ingram Micro Cloud to build upon cloud competence and maturity internally, and externally support partners’ capabilities.
Story image
Apple
Apple previews new features for users with disabilities
Apple says new software features that offer users with disabilities new tools for navigation, health and communication, are set to come out later this year.
Story image
Application Performance Monitoring / APM
Why SolarWinds Partners will have big wins in 2022
We summarise the key recent changes that the monitoring software vendor has made to accelerate its channel business.
Story image
Surveillance
Motorola Solutions acquires Videotec S.p.A for security portfolio
Motorola Solutions has acquired Italian ruggedised video security company Videotec S.p.A, along with its portfolio of highly versatile cameras.
Story image
Microsoft
SAS Viya on Microsoft Azure to deliver 204% return - study
The Forrester Total Economic Impact study finds SAS Viya on Microsoft Azure brings a 204% return on investment over three years.
Story image
Commerce Commission
ComCom appeals $2.25 million fine in Vodafone FibreX case
The Commerce Commission has filed an appeal in the High Court against a $2.25 million fine imposed on Vodafone NZ for its offending under the Fair Trading Act.
Story image
Artificial Intelligence
SAS launches human-focused responsible innovation initiative
SAS has launched a responsible innovation initiative, furthering its commitment to equity and putting people first.
Story image
Workato
Workato unveils enhancements to enterprise automation platform
"The extra layer of protection with EKM, zero-logging, and hourly key rotation gives customers a lot more visibility and control over more sensitive data."
Story image
Phishing
KnowBe4 celebrates reaching 50,000 customers worldwide
KnowBe4 has reached the milestone of 50,000 customers, adding nearly 2,500 in the first quarter of 2022 alone.
Story image
Ransomware
Cybersecurity starts with education
In 2021, 80% of Australian organisations responding to the Sophos State of Ransomware study reported being hit by ransomware. 
Story image
Cybersecurity
BlackBerry offers Kaspersky replacement cybersecurity for the channel
BlackBerry advises that users of Kaspersky software in Australia and New Zealand undertake a rigorous risk analysis of their current security posture.
Story image
Mobility
Tyson Beckford partners with Element Case on new AppleWatch band
Celebrity Tyson Beckford has collaborated with STM Brands' Element Case brand to create a rugged new accessory.
Booster
Booster Innovation Fund. A fund of Kiwi ingenuity – for Kiwi investors.
Link image
Story image
Fortinet
Fortinet's Security Fabric hits new record for integrations
The Fortinet Security Fabric has surpassed 500 technology integrations with more than 300 Fabric-Ready Technology Alliance Partners.
Story image
Application Security
What are the DDoS attack trend predictions for 2022?
Mitigation and recovery are vital to ensuring brand reputation remains solid in the face of a Distributed Denial of Service (DDoS) attack and that business growth and innovation can continue.
Story image
Wireless
Hands-on review: Technics EAH-A800 Noise Cancelling Wireless Headphones
Designed in Osaka, Japan, these headphones just exude quality. They aren’t heavy, but they feel well built and solid.
Story image
Fonterra
Fonterra to use automated guided vehicles by Dematic
New Zealand's dairy giant Fonterra is upgrading its manufacturing facility in Edendale with new automated guided vehicles (AGVs) from Dematic.
Story image
Data Protection
Barracuda launches new capabilities for API Protection
"Every business needs this type of critical protection against API vulnerabilities and automated bot attacks," Barracuda says.
Story image
Remote Working
How zero trust and SD-WANs can support productive remote working
The way people connect with applications and data has changed, users are remotely accessing resources that could be stored anywhere from a corporate data center to the cloud.
Story image
Cybersecurity
Noname Security partners with Netpoleon to target API issues
Specialist API security firm Noname Security has appointed Netpoleon as its distributor in Australia and New Zealand.
Story image
Artificial Intelligence
AI-based email security platform Abnormal Security valued at $4B
"A new breed of cybersecurity solutions that leverage AI is required to change the game and stop the rising threat of sophisticated and targeted email attacks."
Story image
WolfVision
WolfVision announces new range of visualisers
WolfVision has announced a new range of visualisers to help meet multiple industry demands for remote learning and educational solutions.
Story image
Microsoft
New Relic enters multi-year partnership with Microsoft Azure
New Relic has announced a strategic partnership with Microsoft to help enterprises accelerate cloud migration and multi-cloud initiatives. 
Story image
Cybersecurity
Hard numbers: Why ambiguity in cybersecurity no longer adds up
As cybersecurity costs and risks continue to escalate, CEOs continue to struggle with what their investment in cyber protection buys. Getting rid of ambiguity becomes necessary.
Story image
Commerce Commission
ComCom welcomes new marketing codes for the telecom industry
The Commerce Commission is welcoming the creation of new marketing codes for the telecommunications industry.
Story image
Gaming
PNY launches XLR8 Gaming EPIX memory products in A/NZ
PNY has launched its XLR8 Gaming EPIC-X RGB™ DDR4 Silver 3200MHz and 3600MHz memory products in Australia and New Zealand.
Story image
Wireless
Cradlepoint expands its Cellular Intelligence capabilities
Cradlepoint has announced additional Cellular Intelligence capabilities with its NetCloud service.
Story image
Artificial Intelligence
SAS announces new products amid cloud portfolio success
Analytics and AI company SAS is deepening its broad industry portfolio with offerings that support life sciences, energy, and martech.
Story image
Vodafone
Vodafone NZ buys remaining stake in retail joint venture
Vodafone New Zealand has purchased the remaining 50% stake in the specialist joint venture (JV) with private equity company Millennium Corp.
Story image
Sift
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Cybersecurity
NCSC advisory highlights poor security configurations
The GCSB's National Cyber Security Centre (NCSC) has released a cyber security advisory identifying commonly exploited controls and practices.