Back to Blogs

AIOps Helps the MSPs Fight the Managed Services Commoditization Trap

November 21. 2022

In this modern era, every organisation has access to an IT infrastructure. Without a dedicated IT infrastructure, an organisation cannot manage digital channels, software systems, and business data. Having a dedicated IT infrastructure is not enough for an organisation. They must take care of their respective IT infrastructures to maintain service availability. To focus on core responsibilities, organisations outsource the management of their IT infrastructures to reliable MSPs. Managed service providers help their clients with securing, monitoring, and managing the IT infrastructure. In the past few years, MSPs are struggling to stand out or be different. Read on to understand how AIOps-led platforms help MSPs to avoid the commoditisation trap. 

Understanding the concept of the commoditisation trap

When an MSP extends its services, it tries to include some USPs (Unique Selling Point). Sometimes, the services of an MSP can be easily replaced with the services of other MSPs. There might be no clear difference between the services of numerous MSPs. This might happen when MSPs do not have any USP, or the USP is similar to other services in the market.

 

Assume a state where most MSPs have similar services without any USPs. What will the customer do in such a state? Since there aren’t any USPs, the customer will not distinguish services based on their effectiveness. The customer will differentiate between the IT services based on their cost. Since every MSP is offering similar IT services, the customer will try to adopt IT cost optimization strategies and best practices. This whole scenario of different MSPs offering similar services is known as the commoditisation trap. 

 

Due to commoditisation, the competition between the MSPs will increase. Since the MSPs will not have USPs, they can only reduce the prices. At one point in time, an MSP might not reduce the price further to prevent loss. An MSP might not find ways to attract new customers/clients due to commoditisation. Marketing and promotional strategies might fail as there are no USPs to promote. It might be challenging to repeat business with existing customers due to commoditisation. MSPs that fall into the commoditisation trap might find it hard to recover. Let us see how AIOps-led solutions can make MSPs unique and prevent an MSP from commoditisation. 

AIOps uplifts the technology standards

Why is commoditisation now a reality for MSPs around the world? The basic reason is the usage of similar software systems and technology stacks. Most MSPs use the same software solution for monitoring or incident resolution. Traditional or old-age software solutions used by MSPs are now exposed. Every organisation knows the vulnerabilities of systems that have been around for a long time. Organisations have recognised that SaaS solutions offered by MSPs are more or less the same. When the technology used by different MSPs is the same, the results will also be the same. To expect different or better results, an organisation will have to choose an MSP that uses a unique technology stack. 

 

AIOps is a relatively new technology as considered to other technologies in the MSP sector. Even though AIOps is a new technology, it has already made its mark in different industries. If an MSP is using AIOps as the main technology, the clients can expect something different from the MSPs. An MSP using AIOps-led solutions will have something unique to offer to the clients. Clients will realise they might not get automated and intelligent IT services powered by AIOps elsewhere. AIOps-led products and tools are not commoditised yet, and MSPs should incorporate them on a wide scale. 

AIOps-led platforms help MSPs become proactive

Why most software solutions and IT products are similar in the MSP sector? Organisations depend on MSP for hassles and issues that might lead to downtime. It includes IT incidents/issues, system outages/failures, cyberattacks, and other problems. With traditional software solutions, MSPs can only react to these hassles. It means MSPs can control the damage only after a cyberattack has occurred. Organisations are realising that all MSPs only indulge in damage control as they have similar software solutions. As a result, IT cost optimisation will be adopted by an organisation. The client will choose an MSP with fewer pricing for services. MSPs might not boost service availability if they only react to IT issues. 

 

AIOps-led solutions will help an MSP become proactive. It means MSPs can detect IT issues and system failures ahead of time. When an MSP will offer proactive cloud services, technical support, or cybersecurity services, it will attract more clients. Not many MSPs are proactive in fixing IT issues, but AIOps can help MSPs become unique in the market. AIOps-led solutions collect data every instant and perform high-end analysis. Any anomaly in the performance data is a sign of an upcoming anomaly. With high-end analytics, AIOps-led solutions recognise abnormal data patterns and predict IT issues and system failures. 

Centralised technology solutions

MSPs do not have a single software solution for different services. For example, an MPS might deploy different software solutions for cloud services and cybersecurity. Similarly, there might be a different software system for monitoring the client’s IT infrastructure. As a result, an MSP might have to install several systems at their client’s premises to get going and maintain service availability. Every MSP is doing the same, and organisations aren’t finding anything unique. 

 

To fall out of the commoditisation trap, MSPs can rely on a centralised technology, AIOps. For example, an AIOps-based monitoring system will not show results at different steps. It will be a central monitoring system that collects data from numerous sources and displays it on a single unified interface. Similarly, an AIOps-led cybersecurity solution will show actionable insights on a single interface. An MSP client will have a unified view of the IT infrastructure with AIOps-led solutions. Since not many MSPs are offering solutions with a unified view to clients, you can stand out with AIOps. Stand out among MSPs by adopting AIOps-led solutions in 2022!

request a demo free download