Dealing with rising consumer expectations and rising value 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 providers 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 shoppers quicker and release senior engineers for extra strategic work.
However, whereas automation provides clear advantages, Wallace stresses that with out correct planning and structure, it will probably 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 can be key to success within the years forward.
How would you describe the present financial pressures going through MSPs, and the way is that altering conversations round automation and effectivity?
Basically, you’re coping with shoppers themselves which might be very value 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 providers concerned in that, after which the way you differentiate yourselves from each other.
It looks like each consumer is all the time in search of an MSP that may present higher providers at a greater value. In order that they’re all the time searching for completely different firms in that space. For us, we’ve needed to actually outline what’s the differentiator. How are we completely different from different MSPs? It’s turn out to be about simply high quality. For our firm, particularly, we need to ensure that we’re precise consultants in areas and supply service to them, and justify the pricing that we give them.
However regardless of how professional you’re, at a sure value level persons are not going to go along with you. So we’re in search of methods to automate. We’re in search of methods to templatise, to carry 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 carry our prices down in order that we are able to move that on to the consumer.
Are there any explicit duties that MSPs are most eager to automate for the time being, and why would that be?
It actually relies on what their area of interest is. For us, the preliminary onboarding of a consumer and bringing them as much as our requirements is normally probably the most time consuming piece. Discovering a strategy to automate that course of in order that they’re onboarded quicker, our larger engineers should spend much less time in that course of, then that helps break our prices down, and in order that the onboarding concept 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 assume it’s modified the sport for MSPs managing Microsoft Azure environments. Do you agree? And the way has it achieved that?
Sure. We began with the Azure digital Desktop facet. I’ll begin there, after which sort 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 continuously concerned with the method. When you’ve these sort of engineers with the method, it’s going to be much more expensive for us and for the consumer because of this.
After we introduced Nerdio In in the direction of the top of 2020, we have been already in search of methods to automate a few of these processes, and we have been making an attempt to construct it ourselves. That can also be costly to create these processes ourselves. We discovered Nerdio was already excelling in these areas, so once we introduced them in, they instantly minimize out a variety of my time at an architect degree, the place I’m making an attempt to design processes and ensure that all the pieces is coherent, to a sure normal that we have now. Nerdio actually addressed that. And, for us, particularly on the Digital Desktop facet, they have been a recreation changer in a method that we hadn’t actually seen with another firm as they’ve grown into fashionable work.
Now we’re seeing a variety of the opposite stuff that we cope with for shoppers on the Microsoft 365 facet, managing mailboxes, SharePoint, Groups and many others – Nerdio has introduced that stuff up to now yr into their program. We’re beginning to see them sort of revolutionise that as effectively. So we’re ready to herald shoppers and have computerized deployments out to all of our shoppers on the similar time, as an alternative of getting to deal with each individually.
For MSPs early of their Nerdio journey, the place do you see the quickest wins or best areas to drive automation and price financial savings?
In all probability the simplest one is on the Azure. That’s the facet they begin out with. It’s finally the strongest of their setting. So in the event that they’re seeking to carry their shoppers into the cloud in an Azure setting, Nerdio makes it very fast with very straightforward 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 whole setting. In the event you’re taking on an setting, it’s additionally a fast walkthrough simply to take over that setting. The more durable 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 facet of it, however when you get by means of that preliminary transfer to the cloud, Nerdio makes it straightforward 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 beneficial?
The automation facet 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 a variety 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 on top of things. 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’re able to help 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 out to be the subject to deal with for lots of organisations. Even Nerdio has had these conversations of how will we incorporate AI into our program?
I feel you’re going to see Microsoft proceed to develop on what AI appears to be like like within the fashionable office. They’ve achieved that with Co-pilot, they usually’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 subsequent step from there? What’s the subsequent evolution of AI? And the way is our associate neighborhood concerned in that course of? A number of that proper now nonetheless appears to be like like, how will we safe environments? How will we take information and make it one thing that may be ingested in AI? However I actually assume we nonetheless haven’t fairly scratched the floor on the place’s the true final worth of AI. The place does AI finally begin making organisations cash and issues like that.
Are there particular Azure providers or capabilities that MSPs are nonetheless underutilising — however must be leaning right into a bit extra?
Yeah. And that is really one other route that Microsoft is heading in with what they name the adaptable cloud. Not solely do we have now Azure within the cloud, and there was this initiative to maneuver all people to the cloud, however now there’s an initiative to carry the cloud to the shoppers.
So we have now one thing referred to as Azure Native now, previously Azure Stack HCI. It doesn’t essentially should be all cloud or on premise for shoppers. Now we are able to have a look at possibly shifting 80% of your setting to the cloud. Let’s maintain a few of it on premise. What do these workloads appear like? Can they transfer forwards and backwards? Are they adaptable? That sort of stuff.
I feel we’ll proceed to see a hybrid cloud be a spotlight in Azure, as persons are beginning to realise that in the event that they don’t have 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 carry prices down with automation. However I feel you even have shoppers on the market which might be realising it doesn’t make sense for all the pieces 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 effectively automation instruments work, individuals have a tendency to leap in they usually simply begin constructing stuff. That’s sort of the best way within the cloud, normally, Azure makes it nearly deceptively straightforward simply to begin constructing stuff and producing prices.
Individuals overlook structure must be concerned, correct planning and structure, that holistically. You possibly can you can begin constructing a house, and also you would possibly be capable to construct a shack, however it’s in all probability going to collapse on you sooner or later for those who don’t take into consideration the precise structure. It’s the identical with these automation instruments within the clouds. In the event you don’t have that foundational structure in place, once you go to begin utilising these things, sooner or later it’s going to get too huge, too messy and it’s going to collapse.
What excites you most about the way forward for MSPs and what do you assume the MSP panorama will appear like in just a few years?
I completely love the altering technological panorama. I cherished when AI was launched. I like the factor of the unknown in there, as a result of it looks like 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 assume it drives us to raise. We now have 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 make cash as a enterprise after which proceed to innovate and assist our shoppers.
Which will additionally change our jobs as we transfer ahead. There could also be sure roles that received’t exist sooner or later. Even technological sensible, we wouldn’t essentially want an engineer for this. Possibly that’s changed by AI sooner or later in time, however for the foreseeable future, persons are nonetheless going to be concerned. It simply relies upon. They could 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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