MSPs Need IDaaS - Growing Success and Building Profitability in a Changing World
Today’s world barely resembles the state of the IT industry just a few short years ago. The very technology supported and enabled by IT service providers has altered the industry in remarkable ways. Perhaps the most important change to understand here is the rise of cloud computing – your clients are moving to the cloud in droves, and by doing so, they make many of your traditional service offerings obsolete. That obviously has a significant impact on your ability to compete, grow, and even to stay in business. Thankfully, IDaaS delivers the ability to create new revenue streams by providing services essential to the new paradigm.
The Rise of the Cloud
You probably have a very good idea of how much cloud technology has impacted your own business, but what about the wider industry? What effect is the technology having on your customer base, including potential customers down the road? Here are some interesting statistics that should open your eyes to the reality of what you can expect both today and in the future.
- Forbes predicts that by the end of 2015, end-user spending on cloud services will likely exceed $180 billion.
- By 2014, the cloud computing industry had topped $150 billion (growth of over 300% in just 6 years) according to Syntax.com.
- PC World points out that 87% of businesses are currently operating in the cloud.
- 68% of small businesses are already in the cloud, although only 53% of large businesses have adopted it.
- The most common reason to move to the cloud is to reduce the time spent managing IT.
- The second most common reason is to reduce the need for internal IT resources.
You’ll also find that businesses are doing more than just moving their storage offsite. There are tons of different uses for the cloud, although they do vary by company size. Some of the most common uses include the following:
- Web hosting
- Email hosting
- Productivity solutions
- Backup and recovery
- Content filtering
- Application hosting
- System/database/information monitoring
- Help desk solutions
How many of the above-mentioned uses were once supported by services or solutions you offered? How much business has your company lost simply because your clients are attempting to save time and money by moving to the cloud? If you’re like most IT service providers, it’s a significant percentage. There’s a solution, though, and one that ties in directly with emerging trends in the world of cloud computing.
IDaaS and MSPs
The answer to the dwindling success for IT service providers is IDaaS. Authentication as a service joins a host of related “as a service” solutions and provides essential safeguards and benefits for businesses of all sizes in all industries. What is IDaaS and how does it benefit both your company and your clients? Let’s tackle the latter part first.
Your clients don’t just want IDaaS. They need it. Authentication is a painful, complex process that all too often leaves business data open to threats. It really all comes down to passwords and the need for complex, frequently changed credentials. No one needs to tell you that the average user is more likely to choose something simple and easy to remember.
Passwords like “password” and “123123” are just the tip of the iceberg. Other common options are birth dates, anniversary dates and simple phrases that are all too easy to crack. Add to this the fact that most users aren’t all that particular about how they store their passwords – many simply write them down on a notepad, or even on a sticky note adhered to their computer monitor. That’s no way to protect a business’ data.
With IDaaS, businesses gain a range of benefits. The most important of these are single sign-on capabilities, multi-factor authentication and password management. Password management allows companies to monitor access, password usage, and even change passwords on an ongoing basis very easily. Single sign-on coupled with multi-factor authentication delivers a virtually credential-less login process across all necessary platforms with virtually unbreakable security.
So, how does that benefit you and your business?
By partnering with an IDaaS company, MSPs can create a new stream of revenue offering services unavailable through competitors. It’s a chance to create customer stickiness – the simplicity, utility and sheer ease of use offered by the right IDaaS solution, meaning that your clients won’t be anxious to go back to doing things the old way. In fact, it does more than just increase your profitability. It increases your customer loyalty as well.
There are a couple of caveats, though. Obviously, not all IDaaS platforms are created equal. Make sure you choose a company that does not compete with its partners – they should only sell through you, not directly. Additionally, they should send leads generated from end users to their partners to further build your revenue stream, and should provide a simple process for adding or removing customers.
In the end, IDaaS is a “no brainer” delivering you the ability to create new streams of revenue while satisfying new needs on the part of your clients. Cloud technology doesn’t have to create a negative impact on your business. In fact, it actually opens up new worlds of services and solutions that you can provide to your clients. The key is to realize this fact and then act on it by partnering with the right IDaaS provider.