Australian MSPs pressed to offer customers AI tools

Four in five Australian managed service providers (MSPs) report feeling pressure to offer customers AI insights and tools, according to new research published by Barracuda Networks.

But a global study conducted by the company in collaboration with Vanson Bourne found that 94% of Australian MSPs say they need either significant or notable improvements in their knowledge and application of AI products and services in order to meet this demand. The survey also found that 66% of Australian MSPs are seeking additional support from vendors when it comes to AI expertise and guidance.

Meanwhile Australian MSPs are changing the way they operate, with 94% identifying cloud marketplaces as a crucial tool for their organisations and 49% using cloud marketplaces already. More than half of the remaining respondents are now exploring this option.

Another key focus for the sector is security, with 90% of Australian MSPs surveyed believing that they need to improve their internal security posture.

Despite such concerns, most MSPs expect growth in 2024. But Australian respondents report that they are facing challenges including increased competition in the MSP market (43%) and the lack of an ability to help customers comply with government regulations (77%).

Barracuda Regional Sales Director Paul Crighton said the findings demonstrate the challenges the sector is facing. "MSPs must navigate constant change as they contend with rising competition and evolving market strategies, while new technologies and digital transformation broaden the potential for cyber attacks," he said. "Overall, the data underscores the importance of strong vendor partnerships, which will help MSPs overcome hurdles and succeed in the competitive environment of 2024 and beyond."

The full report can be found here.

Image credit: iStock.com/YUTTHANA JAIDEE