Information Technology

AI Transforming Managed Services

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<h2 style="text-align: justify;"><span style="font-size: 12pt;">Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?</span></h2><p style="text-align: justify;">I began my career as a Microsoft developer, building Windows tools and websites, before moving into SharePoint development and leading a major migration from file shares to SharePoint.</p><p style="text-align: justify;">My career has focused on collaboration and workplace management within MSP environments, helping clients modernize infrastructure and data systems. In recent years, I&rsquo;ve specialized in cloud and modern workplace technologies&mdash;Microsoft 365, Azure, Google Workspace, GCP, and AWS&mdash;guiding customers through cloud migrations, infrastructure consolidation, and the adoption of AI tools to enhance productivity and operations.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q2. How is the integration of AI and automation transforming managed service providers' offerings, particularly in terms of operational efficiency and cost reduction? What are the projected growth rates for AI-powered IT operations within the MSP sector?</span></h2><p style="text-align: justify;">The impact of AI is increasing a lot, especially for MSPs, where features like proactive incident detection and resolution are widely appreciated by customers. Features that decrease downtime and optimize resource utilization are the most sought-after features and sometimes become dealmakers or breakers.</p><p style="text-align: justify;">AI in security has also improved. Most customers request automatic actions upon threat detection. I think the next few years will be completely focused on AI features and comparisons because they bring Speed, Accuracy, Proactiveness, and Optimization. Cost is a big factor for small and medium companies, but for medium&mdash;to large companies, cost is not a problem.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q3. How does the integration of sustainability in IT operations shape the future of managed services?</span></h2><p style="text-align: justify;">I haven't seen much customer demand for green initiatives, but cost optimization and resource utilization are becoming focus points that indirectly contribute to sustainability. There is also much emphasis on data cleanup and storage utilization to reduce storage costs and footprint.</p><h2 style="text-align: justify;"><br><span style="font-size: 12pt;">Q4. What new market opportunities are emerging from the increasing need for cloud architecture expertise and cybersecurity solutions? How are these companies positioning themselves in the face of growing competition?</span></h2><p style="text-align: justify;">Multi- or hybrid-cloud is gaining momentum as cloud providers increase by the day and offer great discounts to grab the market share. So, customers are keen to save money in whatever way they can. Cybersecurity solutions now cover many more surface areas than before; one key factor is integrating different detection areas like SIEM tools, where a comprehensive view of overall security is preferred. Customers are not interested in silo products and using multiple interfaces for different types of attacks; instead, a consolidated single view is preferred.</p><h2 style="text-align: justify;"><br><span style="font-size: 12pt;">Q5. As regulatory requirements become more stringent, how are MSPs supporting businesses in maintaining compliance, particularly in industries like finance and healthcare? How is this influencing the market for Compliance-as-a-Service?</span></h2><p style="text-align: justify;">This is an emerging demand in the market, especially for healthcare, biotech, and other regulated companies. I observed a lot of demand from small and medium companies in this area, as they cannot afford a dedicated compliance engineer and would like to save costs and use the expertise of the MSP. Most companies prefer automated and AI-powered tools to enforce compliance and generate reports.&nbsp;</p><h2 style="text-align: justify;"><br><span style="font-size: 12pt;">Q6. Which segment among managed services, migration services, or security services is experiencing the fastest growth, and what innovations are accelerating this growth?</span></h2><p style="text-align: justify;">These days, managed services include security and migration services as part of them rather than being a separate service line or entity. I would say Managed services have evolved to include security, continuity, and migrations, and this is becoming a key differentiator for MSPs.&nbsp;</p><h2 style="text-align: justify;"><br><span style="font-size: 12pt;">Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?</span></h2><p style="text-align: justify;">As an MSP are you offering end-to-end IT solutions or just concentrating a few core areas?&nbsp;<br>Are you including AI tools to reduce costs, optimize utilization, and secure the services?<br>Are you able to manage licensing and inventory as well?&nbsp;<br>Do you also manage Hardware and Virtualization?</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p>
KR Expert - Prasad Annabathula

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