Step-by-Step Program to Achieve Priority #5 with Microsoft 365 Business Premium

This is part of a series on MSP priorities for 2026.

Continuous Monitoring & Improvement Program for MSPs (Microsoft 365 Business Premium)

For MSPs serving SMB clients, achieving continuous security monitoring, ongoing improvement, and user education (Priority #5 from the CIAOPS outlook) requires leveraging Microsoft 365 Business Premium’s built-in tools in a structured, repeatable way. Below is a step-by-step program focusing on technical implementation and monitoring, using only Business Premium features (Secure Score, Compliance Manager, Defender for Business, Intune, audit logging, etc.), with alerting and reporting to drive continuous improvement and informed end-users.

Overview of Key Steps (Core Actions First):

  1. Establish Security & Compliance Baselines: Use Microsoft Secure Score and Compliance Manager to assess current security posture and compliance state. Identify gaps (e.g. missing MFA, outdated policies) and define target scores. [learn.microsoft.com], [blog.apps4.pro]
  2. Deploy Continuous Threat & Device Monitoring: Enable Microsoft Defender for Business across all devices and apply Intune compliance policies. This ensures endpoints are protected (AV, EDR) and device configurations meet your security baseline (no drift).
  3. Implement Audit Logging & Alerting: Turn on Unified Audit Log and configure alert policies for suspicious activities. Monitor user/admin activity (logins, file access, mailbox changes) and get immediate alerts for anomalies (e.g. mass failed logins, external forwarding rules).
  4. Perform Regular Reviews & Improvements: Review Secure Score, Compliance Score, and Defender reports on a schedule (e.g. weekly/monthly). Track progress, address new recommendations, and adjust configurations/policies to continuously improve the security posture. Use built-in dashboards and reports for insight. [learn.microsoft.com]
  5. Ongoing User Education: Conduct continuous user security training and awareness. Leverage Microsoft 365 tools and insights (phishing simulation for those with Defender P2, or regular security tip campaigns) to reduce human risk. Incorporate user feedback and real incident learnings into training. [syncromsp.com]

Each step is detailed below, followed by a summary table of Step, Feature, Actions, and Outcomes for quick reference.

Step 1: Establish Baselines with Secure Score & Compliance Manager

Objective: Create a clear starting point and roadmap by assessing the customer’s current security and compliance posture.

  • Gather Baseline Metrics: Begin with Microsoft Secure Score in the Microsoft 365 Defender portal to measure the tenant’s security posture (score 0-100%). Secure Score scans configurations and user behaviors across identity, device, app, and data protections. A higher score means alignment with more best practices. Similarly, check Compliance Manager’s Compliance Score in the Purview compliance portal to gauge adherence to data protection and regulatory controls. [syncromsp.com] [blog.apps4.pro]
  • Identify Improvement Actions: Both Secure Score and Compliance Manager provide prioritized recommendations (“improvement actions”). For security: e.g. enable MFA for all users, disable legacy authentication, configure anti-phishing policies, etc., each worth points. For compliance: e.g. implement data retention labels, enable DLP for sensitive data, or train users on compliance policies. Document these recommended actions. [syncromsp.com], [syncromsp.com]
  • Set Target Goals: Use these baselines to set improvement targets (e.g. raise Secure Score from 50% to 80% within 6 months). Prioritize high-impact items first (Secure Score highlights actions by risk reduction). Similarly, aim to close top compliance gaps indicated by Compliance Manager’s score (e.g. resolve all “high risk” improvement actions). [learn.microsoft.com]
  • Obtain Stakeholder Buy-In: Ensure clients understand the baseline results and the plan. Secure Score provides an objective metric to justify security investments and measure progress over time. Compliance Score helps illustrate regulatory risk if not addressed. This sets the stage for continuous improvement as a collaborative effort with the client. [syncromsp.com]

Step 2: Deploy Continuous Threat & Device Monitoring (Defender for Business + Intune)

Objective: Implement 24/7 threat detection and enforce secure configurations on all user devices and services, using Microsoft 365 Business Premium’s security tools.

  • Microsoft Defender for Business (Endpoint Protection): Deploy Defender for Business (part of M365 Business Premium) to all client endpoints (Windows, macOS, mobile) via onboarding scripts or Intune integration. This provides next-gen antivirus, endpoint detection and response (EDR), and vulnerability management across the SMB’s devices. Ensure real-time protection, firewall, and automatic sample submission are enabled on all devices via security policies. Once deployed, the Defender portal will continuously monitor for malware, suspicious behaviors, and vulnerabilities (unpatched software) on endpoints.
  • Configure Security Policies in Defender: In the Defender for Business portal, review default threat protection policies (for email, files, and devices) and adjust as needed. For example, enable Safe Attachments & Safe Links for Office 365 email (Defender for Office 365 Plan 1 is included) and tune anti-phishing policies for the client’s domain. These settings ensure threats are proactively filtered. In Defender’s Vulnerability Management dashboard, monitor the “exposure score” and apply recommended patches or configurations to reduce it.[learn.microsoft.com], [learn.microsoft.com]
  • Microsoft Intune (Endpoint Manager) for Devices: Use Intune to enforce compliance and prevent configuration drift on devices. Define Compliance policies that require healthy settings – for example: require devices to have encryption enabled, require a minimum OS version/patch level, block jailbroken devices, and require Microsoft Defender anti-malware to be active. Non-compliant devices (which drift from this baseline) should be flagged and, via Conditional Access (Azure AD P1), denied access to corporate data until remediated. Also deploy Security Baselines (pre-configured baseline profiles for Windows 10/11 and Office apps) through Intune; these baseline profiles apply recommended security settings in bulk and will highlight any setting conflicts (drift) for review.
  • Integrate Device Signals: Microsoft 365 Business Premium ties these together – Intune device risk/compliance feeds into Defender and Azure AD. Ensure that Conditional Access policies leverage these signals (e.g. only allow sign-in from compliant devices and require MFA for an added layer of security). This guarantees that if a device falls out of compliance (e.g. antivirus is disabled or OS is outdated), the user’s access is limited, prompting immediate correction – effectively detecting and mitigating configuration drift in real time.
  • Outcome: With Defender for Business and Intune configured, the MSP now has continuous visibility into threats (malware, suspicious activities) on endpoints, and assurance that devices remain within the secure configuration guardrails. Any breach attempts or risky deviations trigger alerts or automatic responses (like quarantining a file or isolating a device) thanks to Defender’s EDR capabilities.

Step 3: Implement Audit Logging and Alerting Mechanisms

Objective: Gain awareness of security events and configuration changes as they happen, by enabling comprehensive logging and defining alert triggers for early warning.

  • Enable Unified Audit Log: In the Purview Compliance Center (or Defender portal’s Audit section), ensure the Unified Audit Log is turned on for the tenant. (It’s enabled by default for new tenants, but an older tenant might need manual activation.) Audit Logging records user and admin activities across Exchange, SharePoint, Teams, Azure AD, etc., into a central log. This is critical for investigating incidents and spotting unwanted changes. Verify mailbox auditing is also enabled (it is by default) so actions like mailbox access or rule creation are logged. With audit logs, you can later trace who did what (e.g. which admin changed a setting or which user deleted a file).
  • Set Up Security Alert Policies: Leverage built-in alerting in Microsoft 365 Defender/Compliance centers to detect suspicious or important events automatically. For example, configure alerts for:
    • Unusual mailbox activities – e.g. an inbox rule created to forward email externally or mass deletions. Possible compromised account – e.g. many failed login attempts, sign-ins from atypical locations (note: “impossible travel” detection requires Azure AD P2; without it, focus on obvious anomalies like multiple country logins in short time). Malware or Phish detection – e.g. when Defender flags an email with malware or multiple users report a phishing email. Admin role changes – e.g. any addition of a Global Admin role or privileges escalation in Azure AD.
    These alerts can be set in the Microsoft 365 Defender portal under Alert Policies. Tailor the policies’ sensitivity to minimize noise (e.g. require a threshold of events where applicable). Configure each alert to send email notifications to the MSP’s operations team (and/or notify via Teams channel or mobile app). This ensures no critical event goes unnoticed.
  • Implement Configuration Drift Detection: Beyond reactive alerts, proactively schedule checks for drift from baseline configurations. For instance, run a Secure Score delta review weekly – if the score drops unexpectedly, investigate which action regressed (perhaps a setting was undone). Also, periodically export or review key tenant settings (using a script or Microsoft 365 Lighthouse) to catch unauthorized changes (like security group membership changes or policy toggles). Many such changes would appear in audit logs; consider using PowerShell or Graph API to query the Unified Audit Log for specific events (e.g. Set-OrganizationConfig changes or Intune policy edits) on a regular basis. While this is not an out-of-the-box “button,” an MSP can automate these checks as part of the service.
  • Leverage Microsoft 365 Lighthouse (for MSPs managing multiple clients): Although not a direct Business Premium feature for end-customers, MSPs can use the free Microsoft 365 Lighthouse tool to unify monitoring. Lighthouse provides a single pane for alerts, user activity, and device compliance across all your SMB tenants – e.g., it can highlight which customer tenants have new alerts or which need attention (like MFA not enabled on some accounts). This complements per-tenant alerting by helping MSP teams manage scalability.
  • Outcome: With audit logs capturing all activities and well-tuned alerts, the MSP gets instant visibility into potential incidents or misconfigurations. For example, if an employee creates a forwarding rule to an external address or an admin turns off a policy, the team will know in near real-time. This step shifts the security stance from passive to proactive, allowing quick response before small issues become major breaches.

Step 4: Regularly Review Reports, Secure Score & Compliance Manager for Improvement

Objective: Continuously improve the security posture by periodic reviews, using Microsoft 365’s built-in scoring and reporting tools to guide prioritization and verify progress.

  • Weekly Secure Score Reviews: At least weekly, review the Microsoft Secure Score dashboard. Note the current score and any new improvement actions introduced (Microsoft may add recommendations as new threats emerge or as you enable new features). Track which pending actions have been completed and which remain. Use Secure Score’s feature to compare your score with industry benchmarks or similar-sized organizations, if available, to give context. For any action that was recently completed, confirm the Secure Score reflects it (points should be earned once the system detects the change). This serves as a “scorecard” for ongoing security hygiene. [learn.microsoft.com]
  • Monthly Compliance Manager Check-ins: Similarly, review the Compliance Manager each month. Check the Compliance Score progress: have more improvement actions been implemented since last review? Ensure documentation or evidence is uploaded for any completed actions (for audit readiness). If the SMB has to meet specific standards (e.g. GDPR, ISO 27001), ensure the corresponding assessment is active in Compliance Manager and track its score. Address new or pending improvement actions – for example, if Compliance Manager suggests enabling retention on a SharePoint site or conducting staff training on a policy, schedule those tasks.
  • Analyze Defender and Intune Reports: Microsoft 365 provides various security reports – e.g. threat protection reports, device health and compliance reports, user sign-in trends:
    • In the Defender portal’s Reports section, generate the Security Report which shows threat detections, top targeted users, etc., and the Defender for Office 365 reports for email threats. This helps verify that defenses are working (e.g. “X malware blocked this month”) and identify any patterns (like repeated attacks on a particular user). [learn.microsoft.com]
    • In Intune (Endpoint Manager), review the Device Compliance report – see what percentage of devices are compliant vs. not, and drill into reasons for non-compliance (maybe a new device was enrolled but missing an update). Use Intune’s Configuration Analyzer to compare device settings to recommended baselines. [learn.microsoft.com]
    • Check Azure AD sign-in logs for anomalies or trends (available for 30 days with P1) – e.g. look at successful vs failed login attempts, any legacy authentication use that should be addressed, etc.
  • Quarterly Security Posture Meetings: Every quarter (or as appropriate), compile a summary for the client: improvements made (Secure Score up X points, Y number of attacks blocked, Z compliance actions done) and list planned next steps. Use the data from reports to illustrate ROI – e.g. “Multi-factor Authentication was enabled for all users, which Secure Score shows improved our identity security. As a result, 350 suspicious login attempts were thwarted this quarter”. Also discuss any incidents that occurred and lessons learned to feed into new improvements. This not only keeps the SMB informed but also reinforces the continuous improvement cycle.
  • Adjust and Evolve: Use findings from these reviews to update the program’s policies and priorities. For instance, if Secure Score and incident trends show phishing is a major issue, perhaps prioritize rolling out Defender for Office 365 Plan 2 (add-on) for enhanced phishing protection and attack simulation training (if the client agrees). If Compliance Manager shows new regulations or if the client expands into a new industry, add those compliance requirements into the plan. The key is to treat security and compliance as an ongoing process, not a one-time project. [syncromsp.com]

Step 5: Continuous User Education and Awareness

Objective: Create a security-aware culture among end-users so that technology improvements are complemented by responsible user behavior. Users should be regularly educated to recognize and avoid threats, and to follow best practices.

  • Security Awareness Training Program: Establish a recurring training program for employees. Leverage Microsoft 365’s resources where possible:
    • If available, use Attack Simulation Training (part of Defender for O365 Plan 2; if the client doesn’t have this, consider it as an add-on or use third-party tools). This feature lets you run phishing simulation campaigns to test and teach users. For example, send a benign phishing email to see who clicks it, then auto-enroll those users in a training module. While Plan 2 is not included in Business Premium by default, MSPs can simulate similar exercises manually or via third-party if needed, focusing on the same goal – reducing phishing susceptibility. [syncromsp.com]
    • Use Microsoft Learn and productivity training content: Business Premium tenants have access to free training resources (e.g. Microsoft 365 learning pathways on SharePoint, end-user security best-practice guides). Curate short monthly tips or an internal newsletter about recent scams or new security features (“Did you know? OneDrive now has ransomware restore – here’s how to use it if needed.”).
  • Policy and Compliance Training: When you roll out new policies (e.g. a requirement to use Outlook’s “Report Phish” button, or a policy for data classification), conduct a mini training or communication so users understand why and how to comply. For instance, if external email tagging is enabled or USB usage is restricted by Intune policy, inform users in advance with guidance on alternatives. Compliance Manager can also have improvement actions that involve user training (e.g. “Provide annual GDPR training to staff”); track these and ensure they’re delivered.
  • Encourage a Security Feedback Loop: Foster an environment where users can easily report suspicious emails or incidents (Microsoft 365’s built-in Report Message add-in helps with this). When users report phishing emails, ensure IT follows up and also closes the loop by thanking or informing the organization if it was a wider campaign. This positive reinforcement encourages vigilance. Additionally, share sanitized stories of security wins/losses: e.g. “Last month, an employee spotted and reported a phishing email impersonating our CEO – great job, this prevented a potential breach!” or “We recently had an incident where a weak password led to an account compromise; as a reminder, our policies now require MFA and strong passwords.”
  • Measure and Improve User Awareness: Just as we track Secure Score, track metrics for user awareness. This could be phishing simulation success rates (if using a tool), attendance/completion of trainings, or even simple quiz scores from training sessions. Over time, aim to see improvement (e.g. phishing click rates dropping). Use these metrics to identify departments or individuals who might need extra focus.
  • Keep Training Material Fresh: Update content to cover new threats or Microsoft 365 features. For example, if a new type of phishing attack is trending or if Teams introduces a new security feature for file sharing, incorporate those. Microsoft Secure Score itself sometimes recommends “user training” activities as part of improvement – integrate those suggestions to fulfill technical and human aspects together. [syncromsp.com]

The combination of these five steps creates a continuous loop of monitoring, improvement, and education. MSPs should integrate this program into their service delivery, using automation where possible (PowerShell scripts for reporting, Lighthouse for multi-tenant views, etc.) to stay efficient. The result for SMB clients is a steadily improving security posture, high compliance standards, and a workforce that is increasingly resilient against cyber threats.

Step-by-Step Program Summary

The table below summarizes each step of the program, the Microsoft 365 Business Premium feature(s) utilized, key implementation actions, and the expected outcomes for the MSP and client:

StepBusiness Premium Feature(s)Implementation ActionsExpected Outcomes
1. Establish Baseline
Assess current state		– Secure Score (Microsoft 365 Defender)
– Compliance Manager (Purview)		• Assess Secure Score: Record baseline and list recommended improvement actions (e.g. enable MFA) [syncromsp.com].
• Assess Compliance Score: Initiate relevant compliance assessments (e.g. Data Protection Baseline) and identify gaps in controls [blog.apps4.pro].
• Document & Prioritize: Compile all identified security and compliance gaps, prioritize by risk.		• Clear view of current security posture (score) and compliance status.
• List of prioritized tasks mapped to M365 features (serves as roadmap).
• Management buy-in on improvement plan (data-driven justification).
2. Deploy Monitoring
Always-on threat protection		– Microsoft Defender for Business (Endpoints)
– Defender for Office 365 P1 (Email/Collab security)
– Intune (Endpoint Manager)		• Onboard Devices to Defender: Deploy Defender for Business to all endpoints; verify AV, EDR, and vulnerability management are active • Apply Intune Baselines & Compliance: Enforce security baseline configurations and compliance policies (encryption, OS updates, device health) • Configure Policies: Enable anti-phishing, Safe Links/Attachments, and other threat protection policies in Defender for O365• Conditional Access: Require compliant devices and MFA for user access (using Azure AD P1).• Comprehensive coverage against malware, phishing, and other threats across devices and email • Devices stay in line with security standards; non-compliant ones are flagged/blocked (prevents config drift).
• Automated threat response available (isolate infected device, etc.), reducing manual workload.
3. Enable Logging & Alerts
Detect issues early		– Unified Audit Log (Purview Audit)
– Alert Policies (Defender/Compliance Center)
– (Azure AD P1 logs)		• Turn on Audit Logging: Ensure unified audit log is enabled to record all user/admin activitiesextend log retention via Azure AD P1 (30 days by default)• Create Alert Rules: Define alerts for suspicious events (e.g. new inbox forwarding rule, multiple failed logins, malware upload to SharePoint) with notifications to IT• Tune and Test: Adjust alert thresholds to minimize false positives; periodically test alerts (e.g. create a dummy policy change) to ensure they’re working.
• Centralize Monitoring: Use Microsoft 365 Lighthouse for multi-tenant alert visibility (for MSP-scale efficiency)		.• Immediate awareness of potential security incidents or policy changes – allows quick response before damage occurs
• Audit trail available for investigations and compliance audits (who did what, when).
• MSP can monitor many clients efficiently (via Lighthouse), ensuring no tenant is overlooked.
4. Regular Reviews & Improvement
Continuous enhancement		– Secure Score Dashboard (weekly)
– Compliance Manager (monthly/quarterly)
– Defender Reports (Threat & Vulnerability reports)
– Intune Reports (Device compliance)		• Weekly Secure Score Review: Log improvements made, plan next actions for pending Secure Score recommendations [learn.microsoft.com]; ensure no regression (score drop) went unaddressed.
• Monthly Compliance Audit: Update and review compliance score; close out completed actions and identify new gaps (if regulations changed or new MS features available).
• Monthly Reports: Analyze Defender threat reports (email and endpoint) [learn.microsoft.com] and Intune device reports; address any recurring issues (e.g. frequent malware on unpatched devices -> enforce stricter update policy).
• Quarterly Exec Summary: Report to client on achievements (Score improvements, incidents prevented) and next-quarter focus areas.		• Measured improvement over time – higher Secure Score and Compliance Scores demonstrate progress (or reveal areas needing attention).
• Up-to-date security posture: policies and configurations are continually refined based on latest data and threats.
• Client sees value through regular reports (transparency), supporting retention and trust in the MSP partnership.
5. Continuous User Education
Empower the humans		– User Training Content (Microsoft 365 Learning, SharePoint/Viva Engage)
– (Optional) Attack Simulation (Defender for O365 P2 add-on)
– Secure Score User Insights		• Phishing Drills & Training: Conduct periodic phishing simulations and follow-up training for susceptible users (using MS Attack Simulation Training if available) [syncromsp.com]; otherwise use custom email campaigns and track responses.
• Monthly Security Tips: Share short lessons or tips via email or Teams (e.g. “how to spot a phishing email”, “data classification do’s and don’ts”). Leverage Microsoft’s ready materials when possible.
• Policy Acknowledgements: When rolling out new policies, require users to read and acknowledge guidelines (can use SharePoint or Intune’s compliance terms). Reinforce with a brief quiz or Q\&A session.
• Measure Engagement: Track metrics like training completion rates or reduction in simulated phish click-rate. Recognize improvements and address gaps with targeted coaching.		• Users are more vigilant and informed, reducing risky behavior (the “human firewall” is strengthened).
• Fewer incidents caused by user mistakes (e.g. falling for scams), as shown by improved simulation results and real incident metrics.
• A culture of security: Users actively participate in protection (reporting suspicious emails, following policies) rather than seeing security as a hindrance.

References: The program above is grounded in Microsoft’s best practices for Business Premium. Tools like Secure Score provide visibility and guidance to improve security posture, while Compliance Manager offers a structured approach to meeting regulatory requirements. Microsoft Defender for Business and Intune deliver enterprise-grade endpoint protection and management for SMBs, enabling MSPs to implement zero-trust principles (secure identity, devices, and data) in a manageable way. Logging and alerting ensure that no change goes unnoticed, forming the backbone of a proactive security stance. Finally, ongoing user education addresses the fact that technology is only part of the equation – educated users significantly lower the overall risk. By following this program, MSPs can confidently fulfill the “continuous monitoring, improvement, and user education” mandate using the capabilities already available in Microsoft 365 Business Premium, creating a safer and more compliant environment for their SMB clients. [learn.microsoft.com] [blog.apps4.pro][syncromsp.com]

Step-by-Step Program to Achieve Priority #4 with Microsoft 365 Business Premium

This is part of a series on MSP priorities for 2026.

Enhancing Customer Experience & Strategic Value: MSP Roadmap for 2026 (SMB Focus)

Managed Service Providers (MSPs) serving small and medium businesses in 2026 must go beyond break-fix IT support to deliver exceptional customer experiences and strategic business value. This roadmap outlines a step-by-step program leveraging Microsoft 365 Business Premium to transform an MSP’s service delivery – improving client satisfaction, building deeper partnerships, and driving measurable outcomes. The plan is organized into clear phases with targeted Microsoft 365 tools, assigned MSP roles, and key KPIs to track success. Key objectives include faster, more proactive support, alignment with clients’ business goals, empowered end-users through modern workplace solutions, and robust security/compliance as a trust builder. The result is an MSP that is seen not just as an IT fixer, but as a strategic partner delivering tangible business outcomes to SMB clients. [corkinc.com], [blog.ciaops.com] [corkinc.com], [corkinc.com]

Implementation Roadmap Overview

The program is structured into four major phases, executed over roughly 6–9 months (followed by ongoing improvement). Each phase includes specific initiatives, responsible team roles, supporting Microsoft 365 Business Premium capabilities, and targeted outcomes. Table 1 below summarizes the phases with key activities, tools, role assignments, and success metrics:

Table 1: Phased Program Plan – Activities, Tools, Roles, and KPIs

Phase & TimelineKey Activities & DeliverablesM365 Tools/FeaturesResponsible MSP RolesKey Metrics (KPIs)
Phase 1: Discovery & Planning
Month 1		– Client Vision & Needs Assessment: Gather client business goals, pain points, and current satisfaction levels.
– CX Strategy Workshop: Define how IT can enhance client’s customer experience and map out value-add opportunities.
– Roadmap & KPI Setting: Develop a tailored improvement plan with agreed success metrics and timeline.		Teams – for kickoff meetings & stakeholder interviews.
Forms – to survey end-user satisfaction or needs.
SharePoint – to document client requirements and share proposal.		Account Manager / vCIO – leads strategy discussions with client.
Solutions Architect – analyzes client IT environment & maps M365 solutions.
Project Manager – drafts roadmap, ensures stakeholder buy-in.		– Baseline CSAT (customer satisfaction) captured via survey Roadmap sign-off by client stakeholders.
– Defined KPIs (e.g. target first-response time, CSAT %, etc.) established for program.
Phase 2: Solution Implementation
Months 2–4		– Modernize Support Channels: Set up integrated support via Microsoft Teams (e.g. dedicated Teams channel or chat for client, Teams Phone/Voice for helpdesk) to provide quick, multi-channel help.
– Self-Service & Knowledge Base: Create a client-facing SharePoint site or portal with FAQs, how-to guides, and possibly a Power Virtual Agent chatbot for common issues, enabling 24/7 answers 		Process Automation: Streamline routine tasks (password resets, onboarding) using Power Automate flows or Azure AD self-service features, freeing up engineers for higher-value work– Security & Reliability Enhancements: Deploy Intune for device management and Microsoft Defender for Business for threat protection across endpoints and email. Enforce Conditional Access + MFA for all users to significantly reduce breach risk. (Leverage M365 Lighthouse to apply and monitor these across clients.)
– Collaboration Upgrade: Improve client’s internal collaboration using Teams & OneDrive (if not fully adopted) – e.g. set up Teams channels for projects, train on OneDrive file sharing – to boost their workforce productivity (an indirect CX benefit).		Teams – channels & chat for support; Teams Phone for call routing.
SharePoint Online – client knowledge base portal (with search).
Power Automate – automate repetitive support tasks/workflows.
Power Virtual Agents (for Teams) – optional bot for common Q\&A.
Intune (Endpoint Manager) – enforce device security policies (app updates, AV, etc.).
Defender for Office 365 & Endpoint – threat protection (phishing, malware).
Azure AD P1 – Conditional Access, MFA, SSO for user convenience.
Microsoft 365 Lighthouse – multi-tenant monitoring of compliance/security.		Service Delivery Manager – oversees support improvements (Teams helpdesk setup, KB content).
Cloud Engineer – implements Intune policies, Defender configuration, automation workflows.
Security Specialist – leads security configuration (MFA, CA policies) and compliance checks.
Collaboration Specialist – optimizes Teams/SharePoint usage for client’s staff (may coordinate with client’s IT champion).		– Average First Response Time (to support queries) ↓ – e.g. respond within X hours (measured via Teams or ticket system).
– Ticket Volume ↓ via self-service – track reduction in repetitive tickets (password resets, FAQs) as users self-help 		– First Contact Resolution (FCR) ↑ – more issues resolved on first touch (target >Y% FCR)Security Posture Score ↑ – e.g. Microsoft Secure Score improvement (demonstrating risk reduction).
– Zero critical incidents during period (goal of no major downtime/security breaches, indicating reliability).
Phase 3: Training & User Engagement
Month 5		– End-User Training Sessions: Conduct interactive training for client employees on new tools and portals (Teams usage, accessing the SharePoint help portal, any new self-service processes). Use Teams webinars or in-person workshops to ensure high adoption.
– Enable Champions: Identify a client-side “IT champion” or power users and equip them to advocate best practices among peers.
– Feedback Loop: Gather user feedback on the changes (via Forms surveys or during training Q\&A) to identify any friction points or additional needs.
– Refinement: Fine-tune the solutions/configuration based on real-world use and feedback (e.g. adjust a Power Automate workflow, add content to FAQs).		Teams – live training meetings or webinars (recorded for future reference).
Microsoft 365 Learning Pathways/Viva – provide on-demand training content (if available).
Forms – collect attendee feedback and quiz for understanding.
SharePoint – host user guides, tip sheets in portal.
Yammer/Viva Engage (if in use) – establish community for peer support.		Training Specialist – leads user training sessions, creates help materials.
Account Manager – communicates changes, manages expectations with client leadership throughout rollout.
Support Engineers – on standby to assist users during initial go-live of new tools (floor-walking or rapid response).		– User Adoption Rate – e.g. % of users actively using Teams/OneDrive/portal (monitored via M365 usage analytics) ↑.
– User Feedback – post-training survey shows confidence in using new tools (e.g. >90% feel “well prepared”).
– Support Satisfaction – measure via quick post-ticket surveys; should show improvement as users find new system helpful.
– Change Adoption Time – all users onboarded to new processes within X weeks (indicating successful change management).
Phase 4: Ongoing Improvement & Strategic Review
Month 6 onward (continuous)		– Performance Monitoring: Continuously monitor service performance and security. Use Microsoft 365 Admin Center and Lighthouse for alerts (e.g. new threats, device compliance) and track support metrics (ticket trends) over time. Ensure the improvements are sustained (e.g. no MFA lapses, knowledge base kept current).
– Quarterly Business Reviews (QBRs): Every 3 months, hold a strategic meeting with the client (virtual or on-site via Teams) to review key metrics and business outcomes. Present how IT initiatives are impacting their business (e.g. productivity gains, zero major incidents, higher employee satisfaction) [corkinc.com]. Discuss new business needs or technology updates.
– Introduce Innovation: Evaluate and propose new Microsoft 365 features or integrations that could further benefit the client’s business. For example, as AI capabilities mature, consider deploying Microsoft 365 Copilot or building a custom Copilot (via Copilot Studio) to automate customer service or data analysis tasks for the client.		Also explore Power BI reports for the client’s data to uncover insights they value.
– Recognize & Adjust: Track outcomes against the defined KPIs. If targets aren’t met (e.g., CSAT below goal), analyze root causes and implement adjustments (additional training, process tweaks, etc.). Likewise, celebrate and reinforce successes (e.g., highlight that security compliance improvements have set the client apart in their industry, bolstering their trust with their own customers		Executive Communication: Maintain ongoing executive-level engagement – share newsletters or dashboards summarizing IT value delivered (uptime, new capabilities enabled, risk mitigated) in business terms, reinforcing the MSP’s strategic role. [corkinc.com], [corkinc.com]Microsoft 365 Lighthouse – unified view of client tenants (monitor compliance, threat alerts).
Azure AD & Endpoint Manager Admin – routine checks on sign-in security, device health.
Teams – QBR meetings and ad-hoc strategy calls.
Power BI – (optional) dashboards for service metrics or client business KPIs.
Microsoft 365 Copilot – (optional) assist in drafting reports and mining insights for QBRs; potential client-facing use cases (with appropriate licensing).
SharePoint – internal wiki for MSP to document lessons learned across clients; external newsletters via SharePoint News posts emailed out.		Account Manager / vCIO – leads QBRs, maintains strategic relationship, translates IT results to business value [corkinc.com].
Service Delivery Manager – monitors ongoing operations and SLA compliance; continuous improvement owner.
Security/Compliance Lead – continuously audits security posture, keeps client compliant (e.g. industry standards, ACSC Essential Eight if relevant).
Innovation Lead (optional) – explores new M365 features (AI, analytics) and pilots them for client benefit.		– Customer Satisfaction (CSAT) Score ↑ – aim for high post-engagement ratings (e.g. ≥ 90% satisfaction on QBR feedback surveys).
– Net Promoter Score (NPS) ↑ – improved likelihood of client recommending the MSP (indicates strong trust/relationship).
– Client Retention – 100% renewal of contracts and upsell of new services (zero churn).
– Business Impact Metrics – client-specific outcomes achieved (e.g. reduced their internal support costs by X%, improved their end-customer ratings, etc., as gathered during QBR).
– Compliance/Posture – maintain high security score and no major incidents (demonstrating risk managed effectively).

Phase 1: Discovery & Planning. In the first month, the MSP engages with client leadership to define a joint vision for how technology will enhance the client’s customer experience. This involves interviews and workshops to understand the client’s business objectives, current pain points, and what “great service” means to them. For example, if the client is an e-commerce firm struggling with downtime affecting their end-customers, the plan will prioritize reliability and fast support. Using Microsoft Teams meetings and perhaps Forms surveys, the MSP gathers both qualitative and quantitative baseline data (e.g. current CSAT scores, ticket volumes). The MSP’s virtual CIO (vCIO) or account manager leads a strategy workshop to map out how Microsoft 365 solutions can address these needs – aligning IT initiatives with business outcomes (e.g. faster issue resolution leading to the client’s increased sales or customer loyalty). By the end of Phase 1, there is a documented roadmap on a SharePoint site (accessible to client stakeholders) that outlines the upcoming implementation steps, timeline, and agreed success metrics. For instance, the client and MSP might set a goal to raise end-user satisfaction by 15% and cut average ticket resolution time by 30% over the next 6 months (these targets will later be measured and reported). Establishing these goals upfront creates accountability and clarity. [corkinc.com]

Phase 2: Solution Implementation. In this phase (spanning roughly months 2–4), the MSP executes on the roadmap by deploying Microsoft 365 Business Premium solutions that directly enhance the customer experience and add strategic value for the client:

  • Improve Responsiveness & Multi-Channel Support: The MSP configures modern support channels using Teams. For example, they might set up a Team with the client for real-time communication – enabling the client’s staff to @mention the MSP support team for quick questions or schedule ad-hoc support calls. If the client’s arrangement allows, the MSP may also integrate their ticketing system with Teams or use Teams Phone so that when the client calls for help, it rings into an organized call queue. The goal is to meet clients on the channels they prefer and respond faster. Outcome: Clients get help through chat or video within minutes rather than waiting hours for email responses, improving satisfaction (faster responses are strongly correlated with higher CSAT).
  • Enable Self-Service & Knowledge Access: Anticipating common questions and issues, the MSP creates a SharePoint Online knowledge base or client portal. This site contains how-to articles, troubleshooting guides, and even short how-to videos (stored in SharePoint/Stream). It might also include a Power Virtual Agent bot (using the included Power Platform capabilities) embedded on the site or in Teams, which can answer routine questions 24/7 (“How do I reset my email password?” etc.). By leveraging these Microsoft 365 tools, the MSP empowers client users to find answers instantly, reducing the number of trivial tickets and freeing up support staff for more complex issues. This not only speeds up resolutions but also gives users a sense of control, improving their experience.
  • Automate Routine Tasks: Using Power Automate, the MSP automates repetitive processes that previously required human intervention. For example, implement an automated user onboarding workflow: when the client hires a new employee, a Power Automate flow can automatically create the user account in Azure AD, assign licenses, email setup instructions, and schedule a Teams orientation call. Similarly, a self-service password reset (a feature of Azure AD) is enabled so users can resolve login issues without opening a ticket. These automations reduce manual effort and errors, allowing the MSP’s engineers to focus on strategic improvements instead of mundane tasks. Outcome: The MSP can handle client needs more efficiently – routine tasks that took hours or days now happen in seconds, and staff can devote more time to proactive projects (as Microsoft’s research notes, automation frees employees for high-value work).
  • Strengthen Security and Trust: Since a reliable, secure IT environment underpins any good customer experience, the MSP uses Business Premium’s security suite to harden the client’s infrastructure. This includes deploying Microsoft Defender for Endpoint & Office 365 to all client devices and mailboxes for advanced threat protection (guarding against malware, phishing, etc.), and enforcing Multi-Factor Authentication and conditional access policies via Azure AD to prevent unauthorized access. Device management with Intune ensures all client PCs and mobile devices have consistent security configurations, up-to-date patches, and compliance policies (like requiring encryption). These steps dramatically lower the risk of incidents like breaches or malware outbreaks, which can be devastating to the client’s operations and reputation. Achieving a high level of security compliance is framed as a strategic business value: the MSP explains that meeting top standards (for example, aligning with frameworks like ACSC Essential Eight Maturity Level 3) will differentiate the client in their market and foster trust with their customers and partners. In other words, the MSP turns cybersecurity into a customer experience issue — by preventing disruptions and building a trustworthy brand, the client improves the experience of its own customers. Outcome: measurable improvements in security posture (e.g., Microsoft Secure Score) and no major security incidents. Additionally, the client gains confidence that the MSP is safeguarding their business, reinforcing the partnership.
  • Enhance Productivity & Collaboration: Although not strictly “support,” improving the client’s internal collaboration tools can indirectly elevate their overall experience and the value they get from IT. The MSP ensures the client is taking full advantage of the productivity features of Microsoft 365: for instance, rolling out Teams company-wide if not already done, helping migrate files to OneDrive/SharePoint for easy sharing, and setting up Shared Teams or Channels between MSP and client for joint projects. By introducing features like Teams integration with third-party apps or simple Power Apps to streamline specific client workflows, the MSP helps the client’s employees work more efficiently. This kind of guidance shows the MSP is invested in the client’s success, not just basic IT upkeep. Outcome: The client sees increases in their own team’s productivity (which can be gauged via tool usage metrics or feedback) and attributes some of that success to the MSP’s recommendations – deepening the MSP’s strategic value. [corkinc.com]

By the end of Phase 2, the core enhancements are in place. The MSP should communicate the early wins to the client: e.g., “Since we launched your new support portal, we’ve deflected 20% of tickets through self-service, and urgent issues are now addressed within 1 hour on average, down from 4 hours. Security score has improved by 30 points, reducing your cyber risk.” This sets the stage for training and full rollout.

Phase 3: Training & User Engagement. Even the best tools won’t deliver value if people don’t use them correctly. In month 5 (or once Phase 2 solutions are ready), the MSP invests time in educating the client’s users and driving adoption:

  • The MSP’s training lead schedules live training sessions via Microsoft Teams webinars for different user groups. For example, a session for general employees on using the new IT self-service portal and Teams support channel; a session for managers on accessing new Power BI reports or compliance dashboards if those were provided; and perhaps a focused session for the client’s IT contact on the security improvements (so they understand the changes). These sessions are recorded and shared on SharePoint for any staff who could not attend live.
  • The MSP provides quick-reference guides and FAQs (stored on SharePoint or delivered through OneNote) to reinforce learning. These might include a one-page infographic on “How to get IT help faster using Teams,” or a short video demonstrating the new password reset process. By integrating with familiar Microsoft 365 apps (e.g., a Viva Connections or intranet link to the support portal), the MSP makes it easy for users to remember how to engage.
  • To ensure sustained adoption, the MSP encourages the client to nominate a few “digital champions.” These are tech-savvy employees at the client who will act as first-line support for their peers and promote the new tools internally. The MSP can host a separate, slightly more advanced training for these champions, equipping them to handle basic questions and gather feedback. This creates a partner on the inside and fosters user buy-in.
  • Feedback is actively solicited. The MSP might use a Microsoft Forms survey after each training or at the end of the pilot period asking users how the new support experience is working for them. Questions could include rating the responsiveness via Teams, the usefulness of the self-service portal, etc., and open prompts for suggestions. This not only identifies areas to tweak but also makes users feel heard – an important aspect of a positive experience.

By the end of Phase 3, the client’s team is onboarded and comfortable with the new system. We expect to see high engagement – e.g., many knowledge base views, active Teams chats – and a reduction in confusion about IT processes. Ideally, support satisfaction scores (perhaps measured by a simple “How was your support experience?” survey after tickets) are already trending up. Any critical feedback (e.g., “the portal search isn’t finding what I need”) is fed into minor adjustments in this phase. The MSP demonstrates flexibility by refining the solution to fit the users’ reality.

Phase 4: Ongoing Improvement & Strategic Review. With the new processes in full swing by month 6, the MSP transitions into a continuous improvement mode. This phase is indefinite/ongoing and is about maintaining momentum and proving value:

  • The MSP sets up regular monitoring using the admin tools in Microsoft 365. For instance, the Service Delivery Manager receives alerts from M365 Lighthouse or Intune if any device falls out of compliance or if there’s an unusual sign-in attempt on the client’s tenant, allowing the MSP to respond proactively (often before the client even notices an issue). They also watch helpdesk metrics: if ticket volume starts creeping up or satisfaction dips, that’s a signal to investigate and intervene early. This data-driven approach ensures the quality of service remains high over time, not just immediately after the project.
  • Critically, the MSP conducts Quarterly Business Review (QBR) meetings with the client’s executives. In these meetings (held via a Teams video conference or in person), the MSP comes prepared with reports illustrating the impact of the last quarter’s IT operations in business terms. For example, a QBR report might show: Average ticket resolution time dropped to 2 hours (meeting our target), and as a result the client’s employee satisfaction with IT rose to 95% as per the survey – which helps their overall productivity. It might also highlight: Zero security incidents occurred, and the client passed a compliance audit smoothly, which protects their reputation. The MSP might use Power BI to present trends (like a chart of monthly support satisfaction or security posture improvements). By speaking the language of outcomes and risks (not just tech metrics), the MSP solidifies their role as a strategic partner. These reviews are also a forum to plan ahead: discuss upcoming client initiatives (office expansion, new software, etc.) and how the MSP can support them, essentially doing ongoing IT roadmap planning that aligns with the client’s business roadmap. [corkinc.com]
  • The MSP keeps an innovation pipeline for each client. They stay abreast of new Microsoft 365 features (for example, new AI capabilities like Microsoft 365 Copilot and the Copilot Studio toolkit for custom AI assistants). Where relevant, the MSP pilot-tests these and introduces them to the client as additional enhancements. For instance, if the client’s customer service could benefit from AI, the MSP might propose building a custom Copilot chatbot integrated with the client’s data to handle tier-1 customer inquiries, leveraging the Copilot Studio platform. This would directly contribute to the client’s customer experience – an example of the MSP delivering strategic value beyond the initial scope. Even simpler, the MSP might implement small improvements continually: maybe a new Teams app for scheduling site visits, or a Power Automate update to integrate the client’s CRM with Teams notifications. By always seeking ways to improve, the MSP demonstrates commitment to the client’s evolving needs.
  • KPIs are tracked and reported as part of continuous improvement. The MSP uses the agreed metrics (set in Phase 1) to measure success. For example, if one KPI was Net Promoter Score (NPS) of the client for the MSP’s service, the MSP will measure NPS annually and aim for increases. Internally, the MSP also watches retention and growth: a satisfied client is likely to renew and possibly expand services, so a 100% retention rate and new project engagements are signs of success. Security metrics (secure score, incident counts) and compliance status are checked regularly, and the MSP provides the client with compliance reports (e.g., leveraging Microsoft Purview tools if available for audit readiness). If any metric falls short, the MSP treats it as an actionable item – for instance, if surveys show only 80% satisfaction and the target was 90%, the MSP will dig in to find out if perhaps response time is still an issue for certain ticket types and address that specifically.

Throughout this phase, communication is key. The MSP doesn’t wait for QBRs only; they maintain frequent, transparent communication, positioning themselves as an ongoing advisor. For example, monthly email updates might highlight “new features” or share a cybersecurity tip, subtly reinforcing the MSP’s value. As one industry leader put it, clients today demand certainty and partnership – “clients do not just need tools, they need certainty” in outcomes. The MSP’s continuous oversight and engagement provide that certainty. Over time, this cements loyalty: the client views the MSP as an integral part of their success, not an interchangeable supplier. This directly addresses the blog’s emphasis that MSPs must elevate their role and meet rising expectations in 2026. [corkinc.com]

Measuring Success and Outcomes

By implementing this program, MSPs can expect significant improvements in both service quality and client relationship health. Here are the core outcomes and how they are measured:

  • Higher Customer Satisfaction & Loyalty: The ultimate goal is improved CSAT and NPS from the client’s leadership and end-users. For example, post-implementation survey scores should show noticeable gains. High satisfaction is a leading indicator of client retention and referrals – key for an MSP’s growth. Evidence: Faster response and resolution directly drive up satisfaction, and clients who see their MSP proactively improving their business are far more likely to stay on and even expand the partnership.
  • Faster, More Efficient Support Operations: Metrics like first response time and average resolution time should improve substantially. If, for instance, first response went from 4 hours to 1 hour by using Teams and a knowledge bot, that’s a quantifiable win. First Contact Resolution rates should also rise due to better knowledge availability and skilled front-line handling, leading to fewer escalations. Evidence: A well-integrated knowledge base and AI assistance can reduce time spent searching for answers, leading to quicker resolutions and consistent responses.
  • Reduced Ticket Volume for Common Issues: With self-service in place, the MSP’s helpdesk will notice fewer repetitive questions (password resets, “how do I” queries). Those that do come will often be resolved by referring to the new portal, taking less effort. This efficiency gain can be tracked by categorizing tickets and seeing the drop in Tier-1 queries. The MSP can reallocate this saved time to value-added activities (e.g., more client consulting).
  • Improved Security and Compliance Posture: Thanks to Business Premium’s security features, the client’s risk of incidents is minimized. A tangible metric is the Secure Score within Microsoft 365 (aim for a high score, e.g. >90%). Another is compliance audits passed or certifications achieved. The absence of any major security breach over the year is itself a critical outcome – a negative result that speaks volumes. The client and MSP can publicize that robust security (like Essential Eight Maturity Level 3 compliance) as a competitive advantage, reinforcing the strategic value delivered.
  • Strategic Partnership & Business Outcomes: On a qualitative level, the client’s perception of the MSP should shift from “vendor” to “trusted advisor.” Are the MSP’s recommendations now part of the client’s business planning? Is the client asking the MSP for input on new initiatives (a clear sign of trust)? These are observable outcomes. Quantitatively, client retention rate and revenue per client are KPIs for the MSP’s business – satisfied clients stay and often grow the engagement (e.g., adding more Microsoft licenses or new projects, which in turn is a win-win). The program’s success is ultimately reflected in renewals, contract expansions, and maybe client testimonials attesting to the MSP’s value.

By focusing on these metrics, MSPs ensure they continuously align with what the client values most (e.g. uptime, responsiveness, innovation). Each metric ties back to the theme of customer experience and strategic value: for instance, client retention is a direct result of delivering strong experience and strategic insight; first-call resolution is a technical metric but heavily influences the customer’s day-to-day happiness.

Conclusion

In summary, MSPs can enhance customer experience and strategic value by systematically leveraging Microsoft 365 Business Premium across people, process, and technology dimensions. Starting with a deep understanding of client needs and ending with ongoing innovation, this program turns an MSP into a true partner in the client’s success. The use of Business Premium’s integrated suite – from Teams to Intune to the latest AI Copilot capabilities – enables proactive, personalized, and secure services at scale. Clients will notice the difference: quicker solutions, more engagement in planning, and technology that actually advances their business goals, not just maintains the status quo. [corkinc.com], [corkinc.com]

By following this roadmap, MSPs not only meet the “rising expectations” of 2026 but exceed them – delivering outcome-focused, relationship-driven service. This positions the MSP competitively in a changing market where, as experts note, “clients no longer want task-based IT support…they want outcomes”. Embracing that mindset, underpinned by Microsoft 365 tools, will translate into happier clients, stronger long-term partnerships, and growth opportunities for the MSP. [blog.ciaops.com] [corkinc.com]

Step-by-Step Program to Achieve Priority #3 with Microsoft 365 Business Premium

This is part of a series on MSP priorities for 2026.

AI-Driven Automation Program for MSPs (SMB Clients)

Objective: Enable SMB clients to embrace AI-driven solutions and automation using Microsoft 365 Business Premium, through a phased program with clear steps, timelines, roles, and measurable outcomes. The program focuses on quick wins in efficiency and security, structured adoption of AI (e.g. Microsoft 365 Copilot, Power Automate), and ongoing optimization – all delivered in an executive-friendly, outcome-focused manner.

Phase 1: Assessment & Strategy (Weeks 1–2)

Key Actions: Kick off the program with a joint MSP–client assessment of the client’s current processes, pain points, and readiness for AI. The MSP conducts an AI readiness audit covering technology and workflow gaps, while client stakeholders (business managers and IT leads) catalog repetitive, labor-intensive processes and key data sources. Together, define 3–5 high-impact use cases where AI or automation can add value – focusing on tasks with heavy manual effort, clear rules, and measurable outcomes (e.g. time saved, fewer errors). For example, candidates might include automating invoice approvals, using an AI assistant for helpdesk ticket triage, or auto-generating routine reports. Additionally, establish success criteria for each use case (such as “reduce invoice processing time by 50%” or “save 10 hours/month on helpdesk responses”). Finally, align on scope, timeline, and sponsorship: ensure an executive sponsor is in place to communicate vision and support change management. The output of this phase is a clear automation roadmap (target use cases, required Microsoft 365 tools, and KPIs) and a shared understanding of responsibilities. [eatonassoc.com]

Roles: The MSP leads the assessment by bringing templates and expertise (e.g. conducting workshops to surface improvement areas). The client’s executives and process owners provide business context: for instance, “Office managers list the top 10 repetitive processes… IT leaders map where data resides”. This collaboration ensures the strategy focuses on relevant business priorities. The MSP also identifies which Microsoft 365 Business Premium capabilities will be leveraged for each opportunity – for example, Power Automate for workflow automation, Teams + Power Virtual Agents or Copilot for AI-driven assistance, and Azure AD/Intune for identity or device needs. Both parties agree on a high-level plan before moving forward. [eatonassoc.com]

Phase 2: Foundation & Quick Wins (Weeks 3–6)

Key Actions: Before rolling out advanced AI, the environment must be “AI-ready.” In this phase, the MSP establishes a strong foundation on the client’s Microsoft 365 Business Premium tenant. This includes implementing critical security and compliance controls and any pre-requisites for safe AI usage. For example, enforce Azure AD Conditional Access and MFA for all users if not already in place, and enable data protection policies (sensitivity labels, DLP for sensitive info) – essentially “minimum governance guardrails” to ensure AI is deployed on a secure identity and data foundation. Business Premium’s built-in tools (like Defender for Business, Intune, Conditional Access) are utilized here to harden security and manage devices, since successful AI adoption requires trust that corporate data is handled safely. The MSP also sets up an early win by deploying one or two simple automations immediately. For example, using Power Automate to streamline a common task: perhaps an approval workflow or an email alert integration that addresses a known pain point. These quick wins demonstrate tangible improvement within weeks. As one guide notes, introducing basic automations for common repetitive tasks can “deliver a quick efficiency win” and open clients’ eyes to the power of their M365 tools.

In parallel, the MSP finalizes any needed licensing or tool enablement for AI. Notably, Microsoft has introduced “Microsoft 365 Copilot Business” SKUs for SMBs (including one for Business Premium) that add AI capabilities. If the client opts for Copilot, the MSP ensures those licenses are in place and initial Copilot configurations (permissions, content accessibility) are set according to best practices. By the end of Phase 2, the client’s tenant should have a solid security posture and one or two automated workflows live – boosting confidence and setting the stage for broader AI rollout. [connectwise.com]

Roles: The MSP takes charge of technical execution in this phase. They configure M365 Business Premium features for security (e.g. enabling MFA, Intune policies, Defender) and build the initial Power Automate flows or other scripts. The MSP also advises on governance policies – for instance, deciding which data sources Copilot can access or which users should get early AI access. The client’s IT stakeholders assist by providing necessary approvals or information (e.g. which compliance policies apply, who should be in pilot groups). Client leadership should communicate to employees about upcoming improvements (“We are implementing new tools to eliminate manual drudgery and improve security”), helping set expectations and a positive tone. Early user involvement might be limited, but any quick-win automation that goes live should be explained to affected staff so they understand the new, easier process. [connectwise.com], [eatonassoc.com]

Measurable Outcomes (Phase 2): Quick security improvements and initial efficiency gains can be tracked. For example, after enforcing MFA and security baselines, the client’s Microsoft Secure Score should jump upward (a quantifiable security metric). A quick-win automation might be measured by the reduction in time to complete that process. Although Phase 2 is largely foundational, it should already yield visible results – e.g. “automated alerting for form submissions eliminated an hour of manual email sorting per week” – to build momentum.

Phase 3: AI Pilot Implementation (Weeks 7–10)

Key Actions: With the groundwork laid, the program moves to an AI pilot phase. The MSP now implements the core AI-driven solutions for the prioritized use cases, initially on a small scale. This typically involves:

  • Deploying AI Tools to a Pilot Group: For instance, enabling Microsoft 365 Copilot for a set of pilot users (such as a few people in sales, finance, or HR who will exercise it in their daily work), or developing a prototype AI chatbot in Teams for the helpdesk, or using Power Automate with GPT-based actions. The pilot group should be representative and enthusiastic, and they should have clear objectives for what to try (e.g. sales team uses Copilot to draft proposals and get data insights; helpdesk uses an AI assistant to classify and respond to common tickets).
  • Integrating and Configuring AI Workflows: Ensure the AI solutions are properly integrated with the client’s data and workflows. For example, if rolling out Copilot, the MSP checks that it’s grounded in the client’s SharePoint/OneDrive content in a governed way (respecting permissions set in Phase 2). If building a custom automation, connect it to relevant data sources (e.g. linking Outlook, Teams, or a third-party system via connectors). Business Premium provides a robust base here – identity and device management from Phase 2 help ensure only authorized, compliant data feeds into AI, addressing a key concern that AI adoption “must be built on the right identity controls, data permissions, and governance”. The MSP might use tools like the new Copilot Studio or Power Platform capabilities to create tailored AI agents or flows, and leverage their expertise to handle any API or integration work needed. [connectwise.com] [eatonassoc.com]
  • Executing the Pilot and Collecting Feedback: The pilot users start using the AI-driven solutions in real scenarios, while the MSP closely monitors usage and outcomes. It’s critical to measure baseline vs. post-pilot metrics to validate the impact. For each use case, track things like: time to complete a task (before vs. after automation), number of manual steps or touchpoints eliminated, and quality indicators (e.g. error rates or response accuracy). Also gather subjective feedback: are users finding the AI helpful? Any confusion or adjustments needed? The program should allow for quick iteration – if the AI workflow isn’t yielding the expected result, tweak the prompts or logic. For example, if an AI helpdesk agent is piloted, measure if first-response resolution rates improve or if it correctly routes issues, and refine it if it’s missing certain categories. [eatonassoc.com]

During this phase, success means proving out value on a small scale. A well-run pilot will show, for instance, that generating a monthly report with Copilot takes 5 minutes instead of 2 hours, or that an automated approval cuts a three-day waiting process down to same-day. These results should be documented as they will justify expansion. Notably, MSPs are encouraged to “make Copilot outcomes measurable” – define concrete metrics and track them – so that the AI rollout is tied to business value from the start. [connectwise.com]

Roles: In the pilot, MSP experts build and oversee the AI solutions, while pilot users (client employees) actively participate and provide feedback. The MSP’s responsibilities include technical development (e.g. configuring Copilot, creating Power Automate flows with AI integrations) and ensuring the solution works within the client’s environment (taking care of any integration with line-of-business systems or adjusting security settings as needed). The MSP also acts as a coach: training the pilot users in how to use the new AI tools effectively (for example, showing them how to ask Copilot for certain analyses, or how to trigger and monitor the new automated workflow). The client stakeholders during this phase should include the business owners of each pilot use case – they will validate that the AI is producing acceptable outputs. For instance, the finance manager in the pilot can confirm that the AI-generated invoice summaries are accurate. These stakeholders help set the acceptance criteria for the pilot (“we need at least 90% accuracy on categorizing helpdesk tickets” or “proposal drafts should require minimal editing”). They work closely with the MSP to tweak rules or provide sample data to train/guide the AI if needed. Importantly, the client’s IT and compliance officers verify that all pilot activities stay within policy – e.g. that AI is not accessing restricted data or that any sensitive outputs are handled properly. This collaborative pilot execution ensures that by the end of Phase 3, there is solid evidence (in performance metrics and user satisfaction) that the AI-driven solutions deliver the promised outcomes.

Measurable Outcomes (Phase 3): Each pilot use case will have its own success measures, but collectively the pilot should demonstrate at least some of the following improvements: significantly reduced cycle times for the targeted processes, reduction in manual workload (e.g. “we eliminated 5 manual data entry steps in onboarding”), and improved responsiveness (e.g. “customer emails are now answered by the AI assistant within seconds, with an option for human follow-up”). Quantitatively, the team should capture things like “X hours of work saved per week” or “Y% increase in output per staff member” for pilot tasks. Early indications of user adoption are also key: if the majority of pilot users stick with the AI tool and find it beneficial, that’s a green light. (Many organizations see over 80% user adoption within 3 months when AI pilots are well-scoped and demonstrably improve daily work – the pilot phase aim is to hit such high adoption and enthusiasm in the test group.) [eatonassoc.com]

Phase 4: Full Deployment & Training (Weeks 11–16)

Key Actions: After a successful pilot, the program scales the AI-driven solutions to the broader organization. This phase is about deployment at scale, change management, and ensuring all users are enabled to use the new tools effectively. Key activities include:

  • Gradual Rollout: The MSP and client plan a phased rollout of the AI and automation solutions to additional departments or the entire company as appropriate. Rather than a big bang, it’s wise to sequence the deployment. For example, if an AI automation was piloted in Accounts Payable, extend it next to the Purchasing team, then to other finance functions. If Copilot was piloted with a handful of users, consider rolling it out to a larger group in waves (perhaps all managers first, then all knowledge workers). This staged approach allows any minor issues to be addressed and avoids overwhelming the support capacity. Microsoft 365 Business Premium with Copilot (if in use) will now be broadly enabled – this is where having Business Premium pays off, as it “already has identity, device management, and security controls in place, making secure AI adoption easier to operationalize”. In other words, scaling up Copilot or Power Automate usage is straightforward because the necessary licenses and security measures were handled in earlier phases. [eatonassoc.com] [connectwise.com]
  • Comprehensive User Training & Awareness: A critical focus in Phase 4 is getting users comfortable and proficient with the new AI-driven processes. The MSP (or a training specialist) delivers targeted training sessions for different user groups. For instance, host a workshop for all employees on “Using Microsoft 365 Copilot for daily tasks” covering how to ask it to draft documents, find information, or generate insights. Likewise, if automated workflows affect certain roles, provide documentation or live demos of the new process (e.g. “how expense approvals happen in Teams now via automation”). It’s important to convey not just the how but the why – reassure staff that automation isn’t a threat but a means to eliminate drudgery so they can focus on higher-value work. Also set guidelines (especially for AI tools): clarify appropriate use, data handling, and any limitations. For example, train sales and marketing teams on how to review and refine AI-generated content to maintain quality. Executive sponsorship is crucial here: leadership should visibly endorse the changes, for example by using Copilot themselves in meetings and sharing success stories, which “sets an example that motivates employees”. When employees see managers actively embracing the new AI tools, it reinforces cultural adoption.
  • Governance and Policy Refinement: As AI usage becomes widespread, formalize the governance policies. In Phase 2 and 3, interim guardrails were set; now the MSP helps the client institute lasting policies and documentation. For instance, update the company IT policies to include AI acceptable use (what cannot be asked of Copilot, data categories that shouldn’t be fed into prompts, etc.), and ensure audit logging is enabled for AI-related activities for compliance. Microsoft 365 provides auditing and DLP tools that can track sensitive data usage even in AI scenarios. If not already done, define data access boundaries for AI – essentially confirming “what data AI tools can and cannot access” and setting any needed restrictions. Also, establish an internal support process: if users have questions or if the AI produces uncertain output, how should they escalate it? The MSP might set up a feedback channel (like a Teams channel for AI Q\&A or issues) to gather user inputs post-rollout. [eatonassoc.com]

By the end of Phase 4, the AI-driven solutions should be fully embedded in daily operations. All intended users have access, have been trained, and are actively using them for their work. The organization should start realizing the broader benefits: faster workflows across the board, more consistent outputs, and employees leveraging AI as a “copilot” in various tasks.

Roles: During full deployment, MSP responsibilities include technical rollout (e.g. pushing any required client-side updates or ensuring all targeted user accounts have the necessary licenses and access) and acting as the program manager for adoption. They will coordinate training sessions, prepare user guides or cheat-sheets, and remain on standby to troubleshoot any technical snags as user counts grow. The MSP continues to ensure security as new users come online – for example, confirming new users adhere to MFA and that any new devices are Intune-compliant, so the expansion doesn’t introduce vulnerabilities. The client’s leadership and managers hold a vital role in change management: they must encourage their teams to embrace the new ways of working. For example, a sales director might mandate that the team uses the AI proposal generation tool for all new proposals, or an operations manager might set a goal that 90% of routine service requests go through the AI triage bot. Managers should also celebrate early successes (e.g., “Our finance team closed the books in 3 days instead of 5, thanks to the automation – kudos to the team!”). Meanwhile, end-users are responsible for integrating these tools into their routine and providing feedback if something is not working well. The client’s IT support should now be prepared to handle basic inquiries about the AI tools (with the MSP as Tier-2 support for more complex issues). Essentially, in this phase the MSP gradually hands over day-to-day operation of the solution to the client (while still overseeing it), so clearly documented SOPs (Standard Operating Procedures) are created for the client’s IT team regarding the maintenance of these new systems. [eatonassoc.com]

Measurable Outcomes (Phase 4): By the end of the full deployment phase, the program should be hitting its targeted outcomes on a broad scale. Key metrics to look at include: User Adoption Rate – e.g. what percentage of employees are actively using Copilot or following the new automated process. The goal is high adoption; as a benchmark, >75% of the target users consistently using the AI tools is excellent (studies show many SMBs reach ~80% AI adoption in a few months with the right training and incentives). Productivity/Efficiency Gains – quantify the overall impact, such as “automated workflows now handle 100+ transactions per week that used to be manual” or “the average helpdesk ticket resolution time dropped from 4 hours to 1 hour after AI triage.” If the program included customer-facing improvements (like faster responses), customer satisfaction scores could be measured (e.g. an uptick in CSAT due to quicker service). Financial impact should also start to emerge: for example, if each hour saved is reinvested, calculate the notional cost savings. It’s not unrealistic to see on the order of $500–$2,000 per month in savings for an SMB through efficiencies and error reduction, as 66% of AI-adopting SMBs in one survey reported within a few months. The outcomes should be compiled into a report or dashboard – something an executive can glance at to see that, say, “AI automation has saved 50 worker-hours this month, prevented 10 potential errors, and improved our proposal turnaround by 2 days.” These concrete results validate the investment and set a baseline for continuous improvement. [eatonassoc.com]

Phase 5: Ongoing Monitoring & Optimization (Continuous)

Key Actions: The final “phase” is an ongoing effort that runs indefinitely once the solutions are in place. Achieving the outcomes is not a one-time event; sustaining and expanding them requires continuous monitoring and improvement. In this stage, the MSP transitions into a steady-state support and optimization role (often as part of a managed service agreement), and the client’s teams continue to refine their use of AI. Key activities:

  • Performance Monitoring & Support: The MSP (or client IT) should track key metrics on an ongoing basis – usage statistics, success rates of automations, system performance – using dashboards or reports. Regular reviews (e.g. monthly) are scheduled with client stakeholders to review these metrics and any incidents. For example, if Copilot usage data shows some departments lagging, the MSP can arrange additional training or investigate if there’s a blockage. If an automated workflow fails or is bypassed frequently, troubleshoot why and enhance it. It’s advisable to hold quarterly executive checkpoints focusing on AI/automation outcomes: in these, discuss ROI realized to date and decide on any course corrections or further investments. [connectwise.com]
  • Continuous Improvement & New Use Cases: With the first wave of AI solutions delivering value, identify further opportunities to leverage AI across the business. The MSP should help the client plan the next set of improvements. This might mean iterating on the current solutions (e.g. expanding an AI chatbot’s knowledge base to handle more queries) or applying AI to new domains in the organization. For instance, after seeing success in internal operations, the client may want to explore an AI-driven customer FAQ bot, or use Power BI with AI visuals for advanced analytics. Because technology evolves, new features in Microsoft 365 (especially around AI) will continue to emerge – the MSP keeps the client informed of relevant updates (for example, if Microsoft releases a new Copilot capability or integration, the MSP evaluates if it can help the client). Essentially, the MSP and client establish a cycle of innovation: pilot, rollout, measure, optimize, then repeat with new ideas. This prevents stagnation and ensures the client continues to benefit from the latest improvements. It also turns the initial project into a long-term partnership, where the MSP acts as a virtual CIO continuously aligning tech advances with the client’s business strategy.
  • Roles & Responsibilities Formalization: Over time, some responsibilities may shift more to the client’s internal team. Part of optimization is ensuring the client can manage day-to-day operations of the automations (with runbooks or admin guides provided by the MSP). However, areas like advanced AI tuning, major updates, or building new automations might remain the MSP’s role. It’s important to clearly define this in the ongoing phase to avoid gaps. Typically, the MSP handles system health, updates, and complex changes, while the client handles basic user administration and identifies business needs. Regular governance meetings should also ensure compliance is maintained – e.g. review audit logs to ensure AI usage is within policy, and update policies if regulations or business needs change.

Measurable Outcomes (Ongoing): In the long run, the program’s success is gauged by sustained and improved metrics. Efficiency gains should accumulate – for example, if in the first quarter 200 hours were saved, aim for 300+ hours saved in the next with further optimizations. User adoption should remain high or even increase as new features are added (you might target near-100% adoption for applicable roles after ample time and improvements). Business impact can be measured in higher-level terms too: perhaps the SMB client can handle a greater volume of business without adding headcount, or employees report higher satisfaction because they can focus on more creative tasks instead of routine work (this could be measured via employee surveys). The ultimate outcome is that the client organization is now more agile, efficient, and AI-augmented than before: they have, as the blog put it, truly “embraced AI-driven solutions and automation” in their day-to-day operations. The MSP should also track the ROI of the project for the client (e.g. productivity gains quantified in dollar value versus the cost of the solution over time), as well as for the MSP’s own business (since a successful outcome often leads to contract renewals, referrals, and case studies for the MSP).

Roles and Responsibilities Overview

To ensure clarity, the table below summarizes the key roles and responsibilities for the MSP and the client throughout this program:

MSP (Service Provider)Client (SMB Stakeholders)
Strategic Advisor & Project Lead: Drive the overall program plan, phase by phase. MSP consultants perform the initial environment and process audit, uncovering automation opportunities [eatonassoc.com]. They define the solution architecture (which M365 Premium tools and AI services to use) and set success KPIs in consultation with client executives.Executive Sponsor & Stakeholder Alignment: Assign a senior sponsor (e.g. CEO or Principal) to champion the initiative and communicate its importance. Ensure department heads are engaged to define business pain points and priorities. For example, finance and operations managers enumerate the manual processes and pain points that need improvement [eatonassoc.com], providing clear goals for the MSP to target.
Technical Implementation & Integration: Configure Microsoft 365 Business Premium security features, deploy Copilot/AI tools, and build Power Automate flows or bots as needed. The MSP handles all technical setup, from enabling licenses to integrating AI with line-of-business data [eatonassoc.com], ensuring solutions work seamlessly in the client’s environment. They maintain a secure and compliant configuration throughout (e.g. enforcing identity controls, data access limits as defined).IT Coordination & Data Provisioning: Client’s IT staff or primary IT contact works with the MSP to provide access to systems and data required for automation (e.g. ensuring the MSP can connect to a CRM or database if needed). They validate that security and compliance requirements are met from the client’s perspective, approving changes like security policy updates. IT also prepares to support the new tools post-deployment (with documentation from MSP).
Training & Enablement: Educate and guide users on the new AI-driven processes. The MSP creates user-friendly documentation and conducts training sessions (live demos, Q&A) for various teams.They also set usage guidelines (in line with company policies) for AI tools, so employees know how to use Copilot or automated workflows effectively and responsibly.Employee Adoption & Change Management: The client’s management ensures that employees attend trainings and actually use the new tools. Leaders lead by example – e.g. management demonstrates its own use of AI tools in meetings – to foster a culture that embraces automation.Department heads monitor their teams’ adoption and address any resistance or issues (with feedback to the MSP for further support if needed).
Monitoring & Optimization: Continuously monitor solution performance and results. The MSP tracks metrics (usage, time saved, errors prevented, etc.) and reports these to the client in regular reviews [connectwise.com]. They proactively fine-tune workflows or AI configurations to improve outcomes. The MSP also keeps the client informed about new Microsoft 365 features or AI updates that could enhance the solution, proposing enhancements over time.Feedback & Continuous Improvement: Client stakeholders provide ongoing feedback on what’s working or where further improvements are needed. For instance, end-users report if an AI-generated report needs tweaking or if an automated process could cover more scenarios. Business units also identify new areas where automation could help. This feedback loop allows the program to adapt and expand, keeping the automation roadmap aligned with evolving business needs.

Measurable Outcomes and Success Metrics

By following this structured program, MSPs and their SMB clients can achieve concrete outcomes. Below are key success metrics to track, which tie back to the goals of “embracing AI-driven solutions and automation”:

  • Productivity Gains: Significant reduction in manual effort and process cycle times. Aim for on the order of 20+ hours per month of routine work eliminated for key teams (e.g. through automated workflows) – indeed, over half of SMBs using AI report saving at least 20 hours monthly by automating repetitive tasks. For example, if an approval process that used to take 3 days (with human reminders) is now done in half a day via Power Automate and Teams notifications, that translates to faster results and labor hours returned to the business. We should document such improvements for each automated process (e.g. “X process now 70% faster, saving Y hours per week”). Over a year, these efficiency gains should reflect as either capacity to handle more work with the same staff or cost savings by reallocation of effort. [eatonassoc.com]
  • User Adoption & Engagement: High adoption of AI tools across the organization, indicating user buy-in. A successful outcome is when a substantial majority of employees (75%+) in scope are actively using the provided AI-driven solutions in their day-to-day work. As a benchmark, many SMB deployments have seen around 80% of users adopting AI tools within 3 months when those tools clearly help in their job. We will track metrics like number of Copilot queries per user, number of tasks run through the automated workflows vs. old manual way, etc. A rising trend and broad usage means the workforce has embraced the change. Qualitatively, positive employee feedback – e.g. users saying “the new system saves me an hour each day” – signals cultural acceptance of AI. [eatonassoc.com]
  • Process Accuracy and Quality: Automation and AI should not only speed things up but also reduce errors and improve consistency. We will measure error rates or rework instances before vs. after. For example, if manual data entry in a report often had mistakes, and now an AI-driven process generates that report, the error rate should drop to near-zero. Similarly, an AI helpdesk triage might decrease misrouting of tickets. These quality improvements may be seen in metrics like a reduction in corrections needed or higher compliance (since automated steps occur the same way each time). In surveys, employees might report that outputs from AI (emails, analyses, etc.) meet quality standards most of the time, which is an improvement over previous human variability.
  • Business Impact & ROI: Ultimately, the program’s success will reflect in business-level outcomes. This can include cost savings, capacity for growth, and better service delivery. We will translate efficiency metrics into financial terms – for instance, 20 hours saved per month in a department is equivalent to approximately 0.5 FTE, which for an SMB might mean ~$1,000 in cost saved or re-deployable value (in line with findings that ~66% of AI-using SMBs save $500–$2,000 monthly through such optimizations). If automation allowed the company to avoid hiring an additional employee despite growth, that’s a direct cost avoidance benefit. Additionally, faster response times and improved deliverable quality can enhance customer satisfaction, which may lead to revenue retention or growth (though harder to measure short-term, we can use customer feedback or NPS as indicators if available). The MSP and client should agree on a few top-level KPIs that matter to leadership – for example, average project delivery time, monthly sales proposals completed, or customer ticket resolution rate – and see how those move after the AI implementations. These tie the technological outcomes to business outcomes like revenue growth or risk reduction. [eatonassoc.com]
  • Security & Compliance Posture: An often overlooked but crucial outcome of introducing automation under Business Premium is that it can increase security and compliance rather than risking it. By using M365’s secure ecosystem, the client’s data is now more centrally governed. We will note improvements such as an improved Microsoft Secure Score, 100% MFA coverage (if it was lower before), and adherence to data handling policies even as AI tools are used (verified via audit logs). A secure foundation means the AI-driven operations run without incidents – success is measured by the absence of security breaches or compliance violations despite increased automation. In other words, the client achieves efficiency without sacrificing security, thanks to the MSP’s careful governance (this addresses a key requirement that AI adoption be “measurable, compliant, and built to scale”). [connectwise.com]

In summary, by the end of this program the MSP-enabled initiative should deliver clear, executive-level results: faster workflows, empowered employees, and tangible savings. For example, an executive report might read: “Through AI-driven automation, the organization improved operational efficiency by 30%, saving an estimated 120 hours of work per month and $XV in costs. User adoption of the new tools is at 85%, and error rates in key processes have dropped to near zero. These enhancements were achieved while strengthening security (Secure Score up by 15 points), enabling the company to scale effectively into 2026.” Such outcomes demonstrate that the MSP’s step-by-step program not only met the objectives of item three (“Embracing AI-Driven Solutions and Automation”) but did so in a structured, risk-managed way that delivers value to the SMB client’s bottom line. [eatonassoc.com]

M365 Business Premium Compliance Guide from CIAOPS

Design 6

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Step-by-Step Program to Achieve Priority #2 with Microsoft 365 Business Premium

This is part of a series on MSP priorities for 2026.

Program Overview

To fulfill this priority, MSPs should standardize clients on Microsoft 365 Business Premium and fully leverage its cloud services. The following steps outline how to modernize IT operations and workflows using Business Premium’s capabilities. Each step focuses on core actions MSPs can take to deliver the outcomes described in item two of the blog post – namely, a more efficient, secure, and collaborative SMB workplace.

Step-by-Step Implementation

  1. Migrate to a Cloud-First Platform: Begin by moving clients off legacy systems and onto Microsoft 365 Business Premium for all core services. This means migrating email to Exchange Online, files to OneDrive/SharePoint Online, and adopting Teams for communications. Standardizing on Business Premium consolidates productivity apps and security tools into one suite, eliminating silos and legacy on-premise servers. Outcome: A unified, cloud-based environment that reduces maintenance overhead and improves reliability (no more patching local servers or managing disparate apps).
  2. Strengthen Identity and Access Management: Leverage Business Premium’s Azure AD Premium P1 features to secure and streamline user access. Enable multi-factor authentication (MFA) for all users (if not already enforced via Security Defaults) and configure Conditional Access policies to allow only compliant, trusted sign-ins. Set up Self-Service Password Reset to empower users to resolve login issues without helpdesk intervention. Outcome: Tighter security with less friction – users enjoy single sign-on to cloud apps and self-service account management, while MSPs see fewer password reset tickets and reduced breach risk.
  3. Implement Modern Device Management: Use Intune (Endpoint Manager), which is included in Business Premium, to manage and secure all client devices centrally. Enroll Windows PCs via Azure AD Join and Windows Autopilot for zero-touch provisioning of new devices. Enforce standard security policies across endpoints – e.g. require antivirus (Defender for Business), enable BitLocker encryption on laptops, and push OS updates automatically. For mobile/BYOD, apply Intune App Protection (MAM) so users can work on personal devices without compromising company data. Outcome: Consistent, automated device configuration and compliance. New employees get productive faster with pre-configured devices, and ongoing device hygiene (updates, AV, encryption) is maintained without constant manual effort.
  4. Maximize Collaboration & Productivity Tools: Deploy and configure Microsoft Teams as the hub for teamwork (chat, meetings, and project collaboration) in each client organization. Create structured Teams/Channels for departments or projects to reduce email overload and improve knowledge sharing. Move shared files from old file servers or disparate cloud storage into SharePoint Online/Teams so everyone accesses the same cloud-stored documents with version control and easy sharing. Encourage use of OneDrive for Desktop (Known Folder Move) to automatically back up users’ PC files to the cloud, protecting data and enabling work-from-anywhere. Provide user training and best practices on using Office apps, Teams, and cloud storage effectively. Outcome: Employees work more efficiently and flexibly – they can co-edit documents in real time, find information quickly, and collaborate from any location. This improves overall business productivity and reduces time wasted on outdated workflows.
  5. Automate Workflows and Standardize Processes: Identify repetitive tasks that consume your team’s or the client’s time and automate them using Microsoft 365 tools. For example, use Power Automate (included with M365 with standard connectors) to create simple workflows like alerting the team of new client requests, or automating employee onboarding (provisioning accounts, Teams access, welcome emails). In Intune, set up compliance policies and auto-remediation (like auto-installing missing apps or settings) to minimize manual intervention on devices. Leverage Microsoft 365 Lighthouse (a free tool for partners managing multiple Business Premium tenants) to apply uniform security configurations and monitor all clients at scale. Outcome: Automation and consistent policies reduce human error and free up technician time. Routine actions (user setup, software updates, incident notifications) happen faster and more reliably, allowing the MSP to serve more clients without proportional headcount increases.
  6. Monitor, Optimize, and Evolve: Establish metrics to track the impact of these initiatives – e.g. reduction in support tickets, faster onboarding time, or increased Teams usage. Use the Microsoft 365 Admin Center reports and Secure Score to monitor security posture and product adoption. Regularly review these insights to spot areas for improvement. For instance, if Secure Score shows weak points (like users not enrolling in MFA or devices not compliant), fine-tune your policies or provide targeted user training. Stay up-to-date with Microsoft 365 updates (new features, deprecations, and best practices) by scheduling quarterly service reviews. Continuously refine the program: maybe introduce new capabilities like Microsoft Viva for employee experience or Copilot AI features as they become relevant for SMBs. Outcome: The MSP keeps clients’ environments running optimally and evolves their modern workplace over time. By proactively adapting to changes and iterating on policies, you ensure the efficiency gains and business benefits of the cloud-first approach are sustained and grow even further.

Why This Program Works: Microsoft 365 Business Premium provides an integrated suite of tools that cover the productivity, security, and management needs of SMBs. By executing the steps above, an MSP helps clients fully utilize what they’re already paying for – from Office apps to advanced security – instead of piecemeal solutions. The result is a streamlined IT environment where:

  • Users have a seamless, productive experience (one login, access to all work resources anywhere, easy collaboration);
  • SMB Owners see better outcomes (fewer disruptions, higher employee output, stronger protection of data); and
  • The MSP can manage each client more efficiently (centralized policies, less firefighting, more time to focus on strategic improvements).

By focusing on this priority, MSPs turn the promise of digital transformation into tangible day-to-day improvements for small business clients, using the robust toolset of Microsoft 365 Business Premium as the enabler.

Step-by-Step Program for MSPs to Fulfill Priority #1 with Microsoft 365 Business Premium

This is part of a series on MSP priorities for 2026.

Priority #1 (2026): Elevate SMB Cybersecurity and Resilience. The first key priority for MSPs serving SMBs in 2026 is to strengthen clients’ security posture in the face of rising cyber threats. Microsoft 365 Business Premium – a comprehensive productivity and security suite for up to 300 users – is an ideal foundation for this goal, as it includes Office apps, Teams, advanced security (Microsoft Defender), and device management (Intune) in one package. Below is a practical step-by-step program leveraging Business Premium to achieve the outcomes outlined in Priority #1, focusing on identity protection, device and data security, threat prevention, and continuous improvement. The most critical actions (enabling MFA, device compliance, threat protection) are presented first, followed by supporting measures for sustainment. [techcommun…rosoft.com]

Step 1: Enable MFA and Conditional Access for All Users

Action: Immediately protect user identities by requiring multi-factor authentication (MFA) on all accounts and applying Azure AD Conditional Access policies (enabled by Business Premium’s Entra ID Premium P1 license). Start by turning on MFA for every user, ideally via Conditional Access rather than per-user settings. For example, define a policy in Entra ID that requires MFA for all logins and blocks access from risky sign-in locations or legacy authentication protocols. Use Conditional Access “trusted locations” and device compliance conditions to fine-tune access (e.g. skip MFA on known safe networks, but enforce it elsewhere). Also enable self-service password reset with MFA (another Entra ID P1 feature) so users can securely reset credentials without helpdesk intervention. [prescripti….solutions] [prescripti….solutions], [dev.to] [dev.to]

Outcome: Dramatically reduced risk of account breaches. By implementing MFA and intelligent access rules, stolen passwords alone can’t compromise the business. This is critical given that the vast majority of SMB breaches involve compromised credentials – enabling MFA can prevent ~90% of such attacks. Conditional Access gives precise control over who and what conditions can access cloud resources, moving beyond basic security defaults to a true Zero Trust stance. Administrators gain visibility and control, rather than relying on implicit trust. [totalassure.com] [prescripti….solutions]

Best Practices: Roll this out tenant-wide using Azure AD Security Defaults off + custom policies on. Start with a baseline policy (e.g. require MFA for all users) and test using the “What If” tool in Conditional Access to verify the rules before enforcing. Educate users about the new MFA requirement in advance to ensure smooth adoption. For MSPs, standardize a template Conditional Access policy that you can deploy across all client tenants for consistency. (Microsoft 365 Business Premium is the only Business SKU that supports these Conditional Access policies, unlocking this enterprise-grade security for SMBs.) [prescripti….solutions]

Step 2: Onboard and Secure All Devices with Intune

Action: Establish device management and compliance enforcement using Microsoft Intune (included in Business Premium). Enroll every work device – laptops, desktops, and mobile devices – into Intune for centralized management. Configure automatic enrollment for Azure AD-joined or hybrid AD-joined devices so that any new device a user signs in to is prompted to enroll in Intune. For BYOD scenarios, use App Protection Policies (MAM) for mobile apps to secure company data without full device enrollment. Once devices are under management, apply compliance policies: require a minimum OS version/patch level, enable BitLocker encryption on Windows 10/11, enforce password complexity, and block jailbroken or non-compliant devices. Tie these policies back into Conditional Access – e.g. allow access to corporate apps only from compliant (Intune-managed, policy-adherent) devices. [dev.to] [dev.to], [dev.to]

Outcome: Only trusted, secure devices can access company data. Intune enrollment and compliance policies ensure every PC or mobile device meets security standards (up-to-date OS, encryption on, malware protection) before it accesses email or files. Lost or stolen devices can be remotely wiped to protect data. BYOD users get secure access via app sandboxes without risking a data leak. Uniform device management reduces the chance of an unpatched laptop or unauthorized device becoming a breach entry point. For SMBs, this brings enterprise-level endpoint governance – a major step up from the unregulated device access many had before. [dev.to]

Best Practices: Use Intune’s security baselines or template profiles for SMB-friendly settings (there are recommended baseline configurations for Windows, Edge, etc.). Implement Microsoft Defender antivirus policies via Intune to ensure real-time protection is active on all endpoints (Business Premium’s Defender for Business will also cover this – see Step 3). Leverage Windows Autopilot for zero-touch provisioning of new devices to streamline onboarding for new hires or hardware refreshes. MSPs should document a standard device configuration (OS build, required apps, policies) and apply it uniformly across clients for efficiency. Prerequisite: Ensure each Windows device is Windows Pro or higher (Business Premium includes Windows 11 Pro upgrade rights), which is required for Azure AD join and Intune MDM enrollment. [dev.to]

Step 3: Deploy Advanced Threat Protection for Email and Endpoints

Action: Now protect data, email, and endpoints from threats using Business Premium’s built-in Microsoft Defender solutions. In the Microsoft 365 Defender portal, configure Microsoft Defender for Office 365 (Plan 1) – included in Business Premium – to guard against phishing and malware in Exchange, OneDrive, SharePoint, and Teams. Enable Safe Attachments and Safe Links policies so that email attachments and URLs are scanned in real time for threats. Turn on anti-phishing policies to use machine learning for detecting spoofed or suspicious emails. Next, deploy Microsoft Defender for Business (endpoint protection) to all workstations and supported mobile devices. Onboard devices to Defender via Intune security tasks or local script: Intune can push the Defender agent onboarding configuration to each PC automatically. This provides next-generation antivirus, endpoint detection and response (EDR), and threat intelligence on those devices, equivalent to enterprise Defender for Endpoint P1. Ensure that Microsoft 365 Apps (Office desktop apps) are also deployed and kept updated (this can be done via Intune app deployment) so that users have the latest security-enhanced versions of Office. [prescripti….solutions] [prescripti….solutions], [prescripti….solutions] [dev.to]

Outcome: Proactive threat prevention and detection across email and devices. Phishing emails and malicious links are neutralized before users click on them, greatly reducing successful breaches via email (the #1 attack vector for SMBs). Every managed endpoint runs enterprise-grade antivirus/EDR, alerting you to malware or abnormal behavior and allowing quick response (isolation, remediation) via the Defender portal. This closes the gap where over half of SMBs had no endpoint monitoring. By using the integrated Defender suite, threats are tracked holistically – for example, if a user clicks a phishing link, you can see if that device later showed odd behavior, all in one dashboard. Overall, SMB clients get a dramatically improved security posture: common threats like ransomware and credential-stealing malware are stopped in real time, and any incidents are flagged immediately for investigation. [totalassure.com], [prescripti….solutions] [totalassure.com]

Best Practices: Customize anti-phishing rules to protect high-risk users (like execs) by enabling impersonation protection and adding trusted senders/domains to prevent false positives. Use Attack Simulation Training (if available as an add-on or via Defender for Office P2) to run simulated phishing campaigns and educate users – human error is still a leading cause of incidents. In Defender for Business (endpoint), set up automated investigation and remediation so that when an alert fires, the system can attempt to quarantine files or rollback changes automatically. Also configure alerting to MSP administrators (via email or Teams) for high-severity incidents so nothing slips by. If clients use additional security products (firewalls, etc.), integrate those signals where possible or at least ensure roles are clear to avoid gaps.

Step 4: Protect Sensitive Data and Ensure Compliance

Action: Implement basic data protection policies using Microsoft 365’s built-in capabilities, to prevent accidental data leaks and bolster compliance with any industry regulations. In the Microsoft Purview compliance portal (accessible with Business Premium), configure Data Loss Prevention (DLP) policies for common sensitive data types – for example, prevent emails or Teams chats from sharing credit card numbers, social security numbers, or other PII outside the organization. Even the base Business Premium license allows setting up Exchange Online DLP rules to detect sensitive info and either warn the user or block the message. Enable BitLocker drive encryption via Intune (as noted in Step 2) to ensure data on laptops is safe even if lost. Encourage use of OneDrive/SharePoint for file storage instead of local disks, so that data benefits from cloud security controls and backups. Also consider applying Sensitivity Labels (if available) to classify documents – for instance, tag files as “Confidential” vs “Public” – and apply encryption or access restrictions based on those labels. Sensitivity labeling (via Azure Information Protection Plan 1, included in EMS) lets protection travel with the file (the label policies can encrypt files or prevent external sharing). Finally, if clients have compliance requirements (like HIPAA, GDPR, or cyber insurance mandates), use the Compliance Manager in Purview to assess and track adherence to various control frameworks. [techcommun…rosoft.com], [techcommun…rosoft.com] [dev.to] [techcommun…rosoft.com]

Outcome: Minimized risk of data leakage and compliance violations. DLP policies will automatically block or report attempts to send sensitive customer data where it doesn’t belong (e.g. someone accidentally emailing a client’s credit card info). Encryption and labeling ensure that even if files are stolen or misdirected, unauthorized parties can’t read them. These measures give SMBs protections similar to large enterprises, keeping client trust and meeting legal requirements without heavy overhead. In sectors like finance or healthcare, these safeguards are essential and can be a selling point for the MSP’s services. Even for less regulated businesses, showing that strong data controls are in place differentiates your offering and reduces the chance of costly incidents. [techcommun…rosoft.com]

Best Practices: Start with pre-built templates in the DLP policy creation wizard (e.g. template for GDPR data, or US Financial Data) and customize as needed, rather than building rules from scratch. Pilot the DLP policies in audit mode first – this logs potential violations without blocking – to fine-tune the rules and minimize false positives. Educate the client’s employees about what the policies mean if they trigger (e.g. if they see a popup that they’re about to share sensitive info, they should heed it). Keep the compliance configuration lean: focus on a few high-impact policies rather than trying to cover every scenario at once. As a managed service, periodically review policy reports and adjust them to the client’s evolving needs. Additional tip: If clients require more advanced compliance features (insider risk management, encryption customer key, etc.), Microsoft now offers add-on suites for Business Premium – you can plan for these as an upsell, but the base Business Premium already provides a solid starting point. [techcommun…rosoft.com], [techcommun…rosoft.com]

Step 5: Continuous Monitoring, Improvement, and User Education

Action: Operationalize security as an ongoing program. Leverage Microsoft Secure Score to continuously assess each client tenant’s security posture and identify improvement actions. Secure Score aggregates recommendations across Azure AD, Intune, Defender, and more – use it monthly to track progress (for example, after deploying MFA and device compliance, the score will rise) and to spot any regressions. For MSPs managing many customers, set up Microsoft 365 Lighthouse – a free tool for partners – which provides a unified dashboard to monitor security alerts, device compliance, and user risk across all your Business Premium customer tenants. In Lighthouse, configure alerts and incident queues so your team can respond quickly to any customer’s issues from one screen. Additionally, implement a routine of security awareness training for users: deliver short training modules or phishing simulation (third-party tools or Microsoft’s Attack Simulator if available) on a regular basis. Users should learn to recognize phishing attempts, use MFA properly, and follow clean device practices, reinforcing the technology measures with good behavior. Perform periodic security reviews (e.g. quarterly business reviews focused on security) with each client: show them improvements (metrics like Secure Score increase, or number of threats blocked), discuss new threats or Microsoft feature updates, and plan next steps. This keeps the client engaged and aware of the value being delivered. [cloudpartn…rosoft.com] [prnewswire.com], [totalassure.com]

Outcome: Sustained high security posture and adaptability. By treating security as a continuous cycle, MSPs ensure that the initial gains from deploying Business Premium do not erode over time. The organization’s defenses stay current with emerging threats – for instance, if new ransomware tactics appear, you adjust policies or training accordingly. Centralized tools like Secure Score and Lighthouse provide measurable validation of security improvements and help catch any gaps (e.g. if an admin turned off a policy by mistake, score would drop). Regular user training fosters a security-first culture, attacking the human element of risk (notably, 95% of breaches involve some human error as a factor). Overall, the MSP can demonstrate ongoing value through reports and dashboards, and SMB clients maintain confidence that their protection is always up-to-date. In practical terms, this reduces incident rates and ensures faster response when issues do occur, limiting damage and downtime. [totalassure.com]

Best Practices: Automate what you can – for example, set Secure Score reports to email out monthly and use Lighthouse’s task automation or Azure scripts for common remediations (some Secure Score improvement actions can even be triggered via Graph API). Keep a runbook for incident response so that if an alert comes in (e.g. a detected malware outbreak), your team knows the steps to investigate and remediate promptly. Engage in Microsoft’s partner security communities or training (Microsoft offers MSP-specific workshops and bootcamps for Business Premium security) to stay ahead of new features (like recent additions in Entra ID or Defender). Finally, regularly revisit Priority #1’s objectives with the client’s leadership – as you improve their baseline, the conversation can evolve from “fixing vulnerabilities” to enabling new capabilities securely (e.g. deploying Microsoft 365 Copilot or other advanced tools in a secure manner), aligning security improvements with business goals. [cloudpartn…rosoft.com]

Summary of Steps, Tools, and Outcomes: The table below summarizes each step in the program, the key Microsoft 365 Business Premium tools used, expected outcomes, and prerequisites or setup notes for each step:

StepMicrosoft 365 Business Premium ToolsExpected OutcomePrerequisites/Notes
1. Enforce MFA & Conditional AccessAzure AD (Entra ID) Premium P1 – Conditional Access policies; Microsoft Authenticator app for MFAAll user logins are protected by MFA and risk-based policies, drastically reducing unauthorized access [totalassure.com]. Only compliant, verified sign-ins are allowed (Zero Trust) [prescripti….solutions].Business Premium licenses assigned to all users. Disable legacy auth and inform users about MFA rollout. Have break-glass admin account excluded from CA (for safety).
2. Manage & Secure Devices (Intune)Microsoft Intune (Endpoint Manager); Azure AD join; Compliance Policy and Configuration Profile features; Autopilot deployment100% of PCs and mobile devices accessing corporate data are inventoried and meet security standards (encrypted, updated, protected) [dev.to]. Ability to remotely wipe lost devices. No unmanaged or outdated device can access data.Devices running supported OS (Win 10/11 Pro, iOS, Android). Users sign in with Entra ID accounts. Configure baseline policies (enrollment required, BitLocker ON, etc.) before enforcement.
3. Deploy Threat Protection (Email & Endpoint)Microsoft Defender for Office 365 (Plan 1) – Safe Links, Safe Attachments, Anti-phishing; Microsoft Defender for Business (endpoint AV/EDR) via Intune or script; Microsoft 365 Defender security portalPhishing emails and malware are actively blocked or quarantined before causing harm [prescripti….solutions]. Every endpoint has next-gen antivirus and is monitored for threats (with alerts to IT) [prescripti….solutions]. Rapid detection and response to incidents, reducing breach impact.Exchange Online mailboxes in use (for Defender for O365 to apply). Endpoint devices enrolled in Intune or accessible to run onboarding script. Admins should familiarize with Defender portal and set notification rules.
4. Protect Data & ComplianceMicrosoft Purview compliance portal – Data Loss Prevention policies; Sensitivity Labels (AIP); BitLocker (via Intune); Exchange Online retention and data encryption settingsSensitive data (financial, personal, etc.) is identified and controlled – preventing accidental leaks via email or Teams [techcommun…rosoft.com]. All laptops have encrypted drives, and company data is safer in cloud storage. Supports regulatory compliance and client data privacy commitments.Identify key data types to protect (e.g. HIPAA data, credit cards). Business Premium includes basic DLP; for advanced needs, consider add-ons [techcommun…rosoft.com]. Roll out in stages to avoid user friction.
5. Monitor & Improve ContinuouslyMicrosoft Secure Score (security.microsoft.com); Microsoft 365 Lighthouse (multi-tenant management); Azure AD risk reports; User training content (Microsoft Learn or third-party)Sustained security posture with quantifiable improvements (higher Secure Score). Threats and alerts across all clients are centralized for fast response [cloudpartn…rosoft.com]. Users are more security-aware, reducing risky behavior. The MSP can proactively address issues and demonstrate ongoing value.Set a schedule (monthly/quarterly) for reviews. Lighthouse requires CSP partner access to customer tenants. Use reports to show value to clients. Keep admins and users updated on new features and threats (e.g., via newsletters or training sessions).

Each of these steps builds upon the previous to form a comprehensive security program. By standardizing on Microsoft 365 Business Premium across their SMB clientele, MSPs can deliver enterprise-grade protection in a repeatable, cost-effective way. The result for Priority #1 is clear: stronger defenses against cyberattacks, improved compliance, and a more resilient business for clients, all achieved with the integrated toolset that Business Premium provides, backed by Microsoft’s latest innovations. This step-by-step roadmap not only fulfills the outcomes detailed in item one of the outlook, but also creates a platform for MSPs to continue expanding services (such as advanced compliance, analytics, or AI solutions) in a secure manner throughout 2026 and beyond. [prescripti….solutions].

CIA Brief 20251221

image

Get clarity on complex presentations with Explainer in PowerPoint –

https://techcommunity.microsoft.com/blog/Microsoft365InsiderBlog/get-clarity-on-complex-presentatio…

New Microsoft e-book: 3 reasons point solutions are holding you back –

https://www.microsoft.com/en-us/security/blog/2025/12/18/new-microsoft-e-book-3-reasons-point-solut…

New capabilities for AI admins from Ignite 2025 –

https://techcommunity.microsoft.com/blog/microsoft365copilotblog/new-capabilities-for-ai-admins-fro…

Microsoft Defender Experts Disrupt Jasper Sleet’s Insider Access Campaign –

https://techcommunity.microsoft.com/blog/microsoftsecurityexperts/microsoft-defender-experts-disrup…

More control over proofing language in OneNote on Windows –

https://techcommunity.microsoft.com/blog/microsoft365insiderblog/more-control-over-proofing-languag…

Surfing the AI Wave: Manage, Govern, and Protect AI Agents with Microsoft Entra Agent ID –

https://techcommunity.microsoft.com/blog/microsoft-entra-blog/surfing-the-ai-wave-manage-govern-and…

What’s New in Microsoft 365 Copilot | November & December 2025 –

https://techcommunity.microsoft.com/blog/microsoft365copilotblog/what%E2%80%99s-new-in-microsoft-36…

More control over proofing language in OneNote on Windows –

https://techcommunity.microsoft.com/blog/microsoft365insiderblog/more-control-over-proofing-languag…

Microsoft 365 Insider Round-Up: December 2025 –

https://www.linkedin.com/pulse/microsoft-365-insider-round-up-december-2025-microsoft-365-insider-r…

Exchange Online ActiveSync Device Support Update –

https://techcommunity.microsoft.com/blog/exchange/exchange-online-activesync-device-support-update/…

Meet Agents in OneDrive : Your AI assistant built with your own content –

https://techcommunity.microsoft.com/blog/spblog/meet-agents-in-onedrive–your-ai-assistant-built-wi…

What’s new in Microsoft Copilot Studio: November 2025 –

https://www.microsoft.com/en-us/microsoft-copilot/blog/copilot-studio/whats-new-in-microsoft-copilo…

After hours

This AI Vending Machine Was Tricked Into Giving Away Everything

– https://www.youtube.com/watch?v=SpPhm7S9vsQ

Editorial

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Watch out for the next CIA Brief next week

Key Priorities for MSPs in 2026: A Global Outlook (SMB Focus)

Managed Service Providers (MSPs) serving small and medium-sized businesses (SMBs) must elevate their game in 2026 to meet rising expectations and rapid technology changes. Globally, the MSP market continues to expand (projected at $424–$511 billion by 2026), and SMBs are channeling unprecedented investments (over $90 billion in new managed IT spending through 2026). However, with this opportunity comes intense pressure: clients demand better cybersecurity, optimized cloud services, meaningful use of AI, improved service experiences, strict compliance, greater automation, and skilled support. Many MSPs today struggle with gaps in these areas – from reactive security postures to talent shortages – which must be addressed for sustained growth. [deskday.com]

The table below summarizes key operational areas, where MSPs often fall short at present, and the essential focus and actions needed in 2026 to improve:

AreaCurrent Gaps / Needs Improvement2026 Focus & Actions
CybersecurityReactive approach prevalent; advanced threat detection, incident response, and user security training are often insufficient [provaltech.com].Adopt 24/7 threat monitoring (MDR/SOC), implement zero-trust & MFA, run regular security awareness training, and offer compliance guidance (e.g. PCI/GDPR) [deskday.com], [provaltech.com].
Cloud ServicesFocus often limited to migration; many lack expertise in multi-cloud management, cost optimization, and robust cloud security [deskday.com].Provide end-to-end cloud support: manage hybrid/multi-cloud environments, practice FinOps for cost control, ensure cloud backup & DR, and leverage edge computing for low-latency needs [deskday.com], [deskday.com].
AI IntegrationSlow adoption of AI – only ~30% of MSPs use AI to automate tasks, as others remain cautious or lack skills [kaseya.com] (smaller MSPs risk falling behind larger competitors [channele2e.com]).Embed AI in operations: deploy AI-driven ticket triage/chatbots for Tier-1 support, use predictive analytics to prevent outages, and develop client-facing AI solutions (e.g. deploying productivity AI tools) [deskday.com], [channele2e.com].
Customer ExperienceOften seen as mere IT vendors rather than strategic partners – value reporting and proactive guidance lag behind client expectations [channele2e.com].Elevate client engagement: act as a vCIO with business-aligned IT roadmaps, conduct outcome-focused QBRs, provide transparent ROI dashboards (e.g. uptime improved, incidents prevented), and personalize support [channele2e.com], [provaltech.com].
Compliance & GovernanceProactive compliance management is not standard – many SMBs lack guidance on regulatory requirements and data governance [deskday.com].Offer compliance-as-a-service: audit and ensure adherence to standards (GDPR, HIPAA, PCI), deliver automated compliance reports, and keep clients ahead of regulatory changes (adopt “compliance-first” service design) [deskday.com], [deskday.com].
Process AutomationOperations still too manual – MSPs waste 100+ hours/month on tasks (ticket entry, reporting) due to disjointed tools and <25% workflow automation [suppfusion.com], [suppfusion.com].Maximize automation: integrate PSA/RMM and other tools to eliminate duplicate data entry [kaseya.com], use scripts/RPA for routine maintenance, auto-generate reports (e.g. for QBRs) to free time for strategic work [suppfusion.com], [suppfusion.com].
Workforce DevelopmentSkill shortages and burnout persist – over 52% of MSPs cite hiring skilled staff as a top challenge [deskday.com], and overworked teams (59% working holidays) reflect understaffing [kaseya.com].Bolster talent and capacity: invest in upskilling (certifications, training) [provaltech.com], improve work-life balance by offloading work (e.g. outsource NOC/SOC via white-label partners) [deskday.com], and create clear career paths to retain experts [provaltech.com].

Below, we dive into each of these focus areas, examining what MSPs are not doing well today and how they can improve in 2026, with examples and global trends in mind.

1. Strengthening Cybersecurity & Resilience

Cybersecurity is the number-one growth driver in managed services, yet many MSPs’ security offerings haven’t kept pace with evolving threats. What’s not done well: Too often, MSP security is reactive – providing basic antivirus, firewalls, and backups – but lacking in proactive threat hunting, continuous monitoring, and incident response planning. Many providers still treat security as an add-on, rather than baking it into every service. Crucially, clients now expect more: they want their MSP to be a comprehensive security partner, handling advanced threats and compliance needs, not just a help-desk for cyber issues. For example, SMBs are increasingly asking MSPs for help with compliance and cyber insurance requirements – areas in which some MSPs are underprepared. [deskday.com] [provaltech.com]

Focus for 2026: MSPs must shift from reactive to proactive security. This means adopting 24×7 threat monitoring and rapid response capabilities. For instance, a provider might set up a managed detection and response (MDR) service or partner with a Security Operations Center (SOC) to monitor client networks around the clock for intrusions. MSPs should implement zero-trust security frameworks (verify every user/device), enforce multi-factor authentication (MFA) everywhere, and regularly test backup and disaster recovery plans. Security awareness training for client employees is also key – many breaches start with human error, so MSPs should run phishing simulations and training sessions to harden the human element.

Moreover, expanding compliance services is critical. Compliance has become “table stakes” for clients in regulated industries like healthcare, finance, and manufacturing. Yet not all MSPs offer systematic compliance support today. In 2026, leading MSPs will offer Compliance-as-a-Service – e.g. continuous monitoring of compliance (using tools aligned to standards like HIPAA, PCI DSS, GDPR), automated audit reporting, and guiding clients through regulatory changes. An MSP might, for example, maintain a compliance dashboard for each client that tracks data backup practices, access controls, software patch levels, and other policy requirements in real-time. By doing so, the MSP not only protects the client’s data but also helps them avoid fines or legal issues. [deskday.com]

Example Action – Cybersecurity: One MSP serving many SMB law firms realized its basic security package was insufficient. In 2026, it invested in an AI-enhanced threat detection system and partnered with a specialized managed SIEM provider to filter and analyze logs across all client sites. It also began conducting quarterly security posture reviews for each client, showing how many attacks were blocked and recommending next steps (like encrypting all mobile devices). This proactive stance not only reduced incidents but also reassured clients with compliance concerns (e.g. demonstrating support for GDPR and emerging privacy laws). As a result, the MSP could “command premium pricing” for its security-centric services while building deeper trust with customers. [deskday.com]

In summary, cybersecurity in 2026 should permeate every aspect of an MSP’s offerings. The MSPs that succeed will be those who anticipate threats (using advanced tools and intelligence), respond swiftly to incidents, and ensure clients meet security compliance mandates. Given that cybersecurity services are growing ~18% annually (faster than the overall MSP market), investing in these capabilities is both a defensive move and a major growth opportunity. [deskday.com]

2. Optimizing Cloud Services & Infrastructure

Cloud services have become a core component of SMB IT strategies worldwide, but MSPs often struggle to move beyond basic cloud enablement. Current weaknesses: Many MSPs excel at initial cloud migrations (moving an SMB’s servers or applications to AWS/Azure or a private cloud), but fall short in ongoing optimization and multi-cloud expertise. As more businesses adopt complex architectures – e.g. hybrid clouds (mix of on-prem and cloud) and multi-cloud deployments – MSPs need deeper skill in managing and optimizing these environments. In practice, some providers still treat cloud management as a set-and-forget hosting task, missing opportunities to fine-tune performance, optimize costs, or update security configurations continuously. SMB clients, however, increasingly expect their MSP to be the cloud expert who can navigate these complexities: nearly 48% of SMBs now rely on MSPs for public cloud management (a figure climbing each year). [deskday.com]

Focus for 2026: End-to-end cloud lifecycle management should be a priority. MSPs must go beyond provisioning to deliver ongoing optimization, cost management, and integration across cloud platforms. One key area is cost optimization (FinOps) – cloud costs can spiral out of control for SMBs who lack the expertise to right-size resources. An MSP in 2026 should regularly analyze clients’ cloud usage, eliminate waste (e.g. unused VMs or over-provisioned storage), and advise on reserved instances or savings plans. This proactive cost management demonstrates tangible value. In fact, experts note that MSPs should invest in cloud optimization capabilities to meet evolving demand. [channele2e.com]

MSPs also need to handle multi-cloud and hybrid environments confidently. With 73% of organizations using hybrid cloud and multi-cloud adoption doubling in recent years, a provider might, for example, manage an SMB’s Azure infrastructure alongside a Salesforce SaaS and an on-prem file server – ensuring they all work together. Skills in cloud orchestration and monitoring tools (that work across AWS/Azure/GCP) are essential. Security in the cloud is another improvement area: MSPs should implement cloud security best practices like regular cloud vulnerability scans, proper identity & access management, encryption of data at rest and in transit, and configuration audits (using benchmarks such as CIS benchmarks for cloud). [deskday.com]

Emerging technologies present both a challenge and opportunity. Edge computing and IoT integration are on the rise, especially for industries needing real-time data processing (manufacturing, retail, smart devices). In response, MSPs should be prepared to manage distributed edge infrastructure – for example, deploying and monitoring mini-servers or appliances at client sites or in the field that sync with central cloud systems. By developing solutions for edge computing (like local data processing coupled with cloud analytics), an MSP can differentiate itself for clients who require low-latency performance. [deskday.com]

Example Action – Cloud: An MSP with several SMB clients in e-commerce noticed their cloud bills were climbing while performance issues lingered. In 2026, the MSP introduced a Cloud Cost & Performance Audit service. Using cloud management tools, it analyzed each client’s resource utilization and identified overspending (e.g. servers running at 5% utilization). It then implemented auto-scaling and schedule-based resources (shutting down non-critical systems after hours) for those clients, cutting cloud costs by 20%. They also added a multi-cloud backup solution – replicating critical data from the primary AWS environment to an Azure data center – to bolster resilience. The clients not only saved money but also gained confidence that their cloud setup was optimized and fault-tolerant, something they wouldn’t have achieved on their own.

In short, MSPs in 2026 should provide holistic cloud stewardship: from architecture planning and migration through continuous optimization, security, and new tech integration. As SMBs continue to increase spending on cloud and related services, MSPs who deliver efficiency and reliability in the cloud will deepen customer loyalty and attract new business. [channele2e.com]

3. Embracing AI-Driven Solutions and Automation

AI integration is shifting from a buzzword to a competitive necessity for MSPs. By 2026, AI won’t be optional – it will be woven into service delivery for efficiency and smarter support. Where MSPs are lagging: A surprising number of MSPs have been slow to leverage AI in their operations. Surveys show roughly 30% of MSPs are already using AI to eliminate repetitive tasks, but the majority have not yet implemented such solutions, with some firms cautious about AI’s risks or lacking in-house expertise. This reluctance is problematic: AI is rapidly changing MSP economics by automating Tier-1 support tasks, and providers not leveraging AI will struggle to compete on cost and service quality. In essence, larger MSPs (often backed by investors) are racing ahead with AI, widening the efficiency gap over smaller players. [kaseya.com] [channele2e.com]

Focus for 2026: MSPs should embed AI across their workflows to enhance both internal efficiency and customer value. A primary application is in the service desk: deploying AI-driven chatbots or virtual agents that can handle common support queries and basic troubleshooting. By 2026, an AI-powered system can automatically categorize and route tickets, suggest solutions, or even resolve issues (like password resets or simple network glitches) without human intervention. In fact, analysts predict widespread service desk automation could cut ticket volumes by 40–60% and drastically speed up resolution times. This frees up human technicians to focus on more complex issues, improving overall support quality. It’s telling that 87% of MSPs plan to increase AI investments by 2026 – the tools are becoming more accessible (built into RMM/PSA software, for instance) and MSPs recognize the ROI. [deskday.com]

Beyond support, predictive analytics is a game-changer. MSPs should use AI to analyze system logs and performance metrics to predict and prevent failures – for example, forecasting when a server might fail or when storage will run out, so they can fix it before it causes downtime. This predictive maintenance approach was once a luxury but is increasingly expected as part of proactive managed services.

MSPs can also extend AI to augment decision-making and reporting. Modern AI tools can comb through an SMB client’s data and provide insights, such as identifying security anomalies or highlighting usage trends. Some MSPs are starting to use generative AI to draft clearer client communications or create executive summaries of IT performance for quarterly reports. In 2026, we’ll see successful MSPs providing clients with AI-generated insights – for example, an automated monthly report that not only lists incidents resolved, but explains in plain language how those IT events affected the client’s business and recommends improvements (all generated with minimal human editing). [deskday.com]

Furthermore, MSPs should consider offering AI-related services to customers. SMBs often lack the knowledge to implement AI solutions themselves, so an MSP can step in as a guide. This could include setting up an AI-powered analytics platform for a client’s sales data, or integrating an AI chatbot on a client’s website for customer service. Since 55% of businesses expect their MSPs to adopt and deploy AI tech by 2026, showing expertise in practical AI applications can be a major selling point. [deskday.com]

Example Action – AI: A mid-sized MSP in 2025 handled thousands of tickets monthly and struggled with slow response times. In 2026, they integrated an AI service bot into their ticketing system. The bot uses natural language processing to understand incoming emails and chat requests from users – it automatically resolved simple issues (password resets, Wi-Fi setup instructions) and pulled up relevant knowledge base articles for technicians on more complex problems. The result was a 50% reduction in human-handled Level-1 tickets and much faster first responses. Additionally, the MSP began offering an “AI Advisory” service to clients: helping SMBs pilot tools like Microsoft’s AI Copilots or AI-based CRM add-ons to streamline their own business workflows. This not only generated a new revenue stream but also positioned the MSP as an innovation partner.

In sum, AI and automation are key to MSP efficiency and differentiation in 2026. MSPs should aim to automate away the grunt work – from repetitive troubleshooting to data reporting – so they can deliver faster service at scale. Those who fail to leverage AI will find themselves with higher costs and slower service, unable to match “AI-powered” competitors. Embracing AI is thus both a defensive strategy (to stay efficient) and an offensive one (to offer new intelligent services). [channele2e.com]

4. Enhancing Customer Experience and Strategic Value

As technology solutions commoditize, customer experience (CX) and the strategic value an MSP provides become critical differentiators. Today’s SMB clients don’t just want IT support; they want a partner who understands their business and helps it grow. Where MSPs fall short: Many MSPs still operate in a reactive, technical mindset – fixing what’s broken and maintaining systems – but not engaging at the business level or clearly demonstrating value. Clients are increasingly scrutinizing costs and asking, “What am I getting for this monthly fee?”. If the MSP only talks in technical terms (uptime, tickets closed) without linking to business outcomes, clients may feel the partnership is not delivering enough. In fact, MSP industry experts observe that successful MSPs now “sell outcomes, not just services,” using benchmarks and reviews to prove their worth. Many providers have been slow to adopt this outcomes-focused approach. [channele2e.com]

Another aspect of CX is responsiveness and personalization. SMB customers can feel neglected if their provider treats them like just another ticket number. Some MSPs could do better in maintaining regular communication, soliciting feedback, and tailoring their support to each client’s unique needs. It’s telling that clients are asking for more guidance – for example, they want help choosing which software matters, which investments to prioritize, and clarity on why MSP recommendations are made. If MSPs aren’t providing this guidance, clients may seek someone who will. [provaltech.com]

Focus for 2026: MSPs should strive to become trusted advisors to their SMB clients, not just IT fixers. This means deeply understanding each client’s industry, business goals, and challenges, and then aligning technology strategies accordingly. A concrete step is to institute regular strategic meetings – often Quarterly Business Reviews (QBRs) – but these must evolve from perfunctory report-outs to forward-looking planning sessions. Rather than just reciting metrics, the MSP should use QBRs to discuss “Here’s how your IT environment improved your business this quarter, and here’s what we recommend for the next quarter to support your goals.” For example, tie in how a new collaboration tool led to faster project completion for the client, or how the MSP’s quick incident response saved X hours of downtime, preserving the client’s revenue. Actionable outcomes should be the focus of these meetings. [provaltech.com]

To support these strategic discussions, MSPs need to provide clear, tangible reporting of value. Gone are the days of sending a generic monthly uptime report that clients might not even read. In 2026, MSPs should leverage dashboards and analytics to show key performance indicators (KPIs) that matter to the client’s leadership – whether it’s the number of cyber attacks blocked (indicating risk reduction), the time to resolve issues (operational efficiency), or improvements in system performance that enable employee productivity. As one channel expert noted, benchmarks, business reviews, and analytics dashboards have become must-haves for MSPs to prove their value. Clients also “expect more proof of value” – they want to know what was prevented, what improved, how security posture changed, and what’s coming next. Ensuring your data is clean and presented in an accessible way is vital – e.g. an MSP might implement a customer portal where the client can log in anytime to see ticket status, security alerts, and project updates in real time. [channele2e.com] [provaltech.com]

Improving customer experience also involves being proactive and consultative. An MSP should bring new ideas to the client: for instance, recommending a workflow automation tool to an accounting firm client because the MSP knows reducing manual data entry could save them money. This kind of proactive solutioneering shows the MSP is thinking about the client’s business, not just waiting for instructions. Industry trends show that clients in mature markets now expect MSPs to help predict and prevent issues and to speak the language of business outcomes. Instead of waiting for clients to ask for a technology, the MSP should be saying “We’ve analyzed your operations and we think adopting XYZ software could improve your customer satisfaction by 10%, let us help you implement it.” [deskday.com]

Personalization and responsiveness remain key to CX. Simple gestures like having a dedicated account manager who really knows the client’s environment, or sending quick status updates during a major incident, go a long way in building trust. Also, timely support (meeting or exceeding SLAs) is part of the experience – even with automation, MSPs must ensure that when a human touch is needed, they are prompt and effective.

Example Action – Customer Experience: Consider an MSP serving a chain of retail stores. Historically, they just kept the POS systems running. In 2026, the MSP shifts approach: they schedule quarterly strategy sessions with the retailer’s management. In one QBR, they present a dashboard showing that over the holiday season, their support kept 99.9% uptime, preventing an estimated 5 hours of downtime (which, for the retailer, translates to an estimated $50k of sales not lost). They also highlight that by upgrading the store’s Wi-Fi and installing a new inventory management app (their suggestion last quarter), the client’s inventory turnover improved noticeably. Going forward, the MSP recommends a customer analytics tool to help the retailer personalize marketing – a bit outside pure IT infrastructure, but a tech solution aligned to growing the retailer’s business. The client, seeing the MSP’s advice consistently improve outcomes, now views the MSP as a strategic partner rather than just an IT supplier, leading to a long-term contract and openness to more services. [provaltech.com]

In essence, the MSPs that win in 2026 will pair excellent technical service with high-touch, value-driven customer engagement. They will measure their success in the client’s terms (productivity, risk reduction, growth support) and continuously communicate that value. This shift from “vendor” to “partner” status not only improves client satisfaction but provides MSPs with opportunities to broaden their services (since satisfied clients trust them with more tasks). As one MSP CEO put it, support is essential “but strategic guidance becomes the real differentiator”. [provaltech.com]

5. Navigating Compliance and Regulatory Demands

In a world of escalating data regulations and industry-specific rules, compliance has become a critical area where MSPs need to step up. SMBs often lack dedicated compliance officers or expertise, so they look to their MSPs for help in governing IT systems according to laws and standards. Current state: Not all MSPs currently include compliance management in their service portfolio. Many focus on technology uptime and security, assuming compliance (e.g., with data privacy laws or industry regulations) is the client’s responsibility. This gap means SMBs might be unaware of vulnerabilities or violations until an audit or breach occurs. Given the proliferation of regulations – from GDPR and CCPA (privacy) to PCI DSS (payment security), HIPAA (health data), or even sector-specific cybersecurity mandates – MSPs that ignore compliance are leaving clients exposed. In 2025, forward-looking MSPs identified compliance as a major opportunity, noting that continuous compliance monitoring and audit support could command premium services. Yet execution is lagging: compliance is often addressed in a piecemeal way (e.g., enabling encryption here or there) rather than through a structured program. [deskday.com]

Focus for 2026: Make compliance and governance a proactive service, not an afterthought. MSPs should familiarize themselves with the key regulations affecting their client base. For example, if you support medical clinics, HIPAA guidelines on data protection and breach notification should be second nature; if you serve European customers, GDPR’s requirements for data handling and breach reporting must be baked into your processes. In practical terms, MSPs need to audit their clients’ systems for compliance gaps regularly. This could entail running tools that check for data that’s stored without proper encryption, or ensuring that access rights are configured according to least privilege principles.

Offering Compliance-as-a-Service (CaaS) can differentiate an MSP. CaaS might include services such as: policy development (helping an SMB craft an IT usage policy or data retention policy), continuous monitoring (monitoring logins, file transfers, and configurations against compliance benchmarks), and automated compliance reporting. For instance, an MSP can use dashboard tools to map a client’s status against frameworks like NIST or ISO 27001, showing which controls are in place and which need attention. Prior to audits or assessments, the MSP can run an “audit readiness” exercise to fix issues. It’s also wise to educate clients – e.g., hold an annual workshop on new laws (such as updates to privacy regulations) that the client needs to know about. [deskday.com]

Compliance efforts go hand-in-hand with security improvements, but have a distinct business value: they reduce risk of legal penalties and build trust with the client’s customers. SMBs may not have realized their MSP could help here, so proactively offering this service in 2026 can meet an unmet need. Industry data suggests MSPs especially in mature markets (US, Canada, EU, ANZ) are starting to adopt a “compliance-first” service design approach, making compliance a core part of every solution due to strict regulations in these regions. This trend will likely spread worldwide as more countries introduce data protection laws. [deskday.com]

Example Action – Compliance: A small finance company (client of an MSP) faces strict regulations (PCI DSS for credit card data and new cybersecurity mandates from their government). The MSP decides in 2026 to create a Compliance Dashboard for this client. Each month, the dashboard scans the client’s systems: checking that all devices have the latest security patches, that antivirus is active, that only approved personnel accessed sensitive databases, and that backups were performed. The MSP shares this dashboard during monthly calls, so the client sees they are, say, 98% compliant with PCI requirements, with specific recommendations to get to 100%. When the client undergoes its annual audit, the MSP helps generate the required reports (e.g. user access logs, incident logs) at a click of a button. The audit passes without major findings – a stark improvement from previous years. The client’s executives now sleep better knowing compliance is continuously watched by their MSP.

In short, MSPs in 2026 should integrate compliance into their offerings to protect clients not just from hackers, but also from regulators. This involves staying current on relevant laws, leveraging tools to automate compliance checks, and guiding clients through the complex maze of requirements. By doing so, MSPs add a layer of strategic value (shielding clients from fines and reputational damage) and strengthen their role as a long-term partner. Given that regulatory scrutiny is only increasing globally, a proactive stance on compliance is both a defensive necessity and a chance to build trust (clients will know their MSP “has their back” on more than just tech). [deskday.com]

6. Driving Efficiency with Process Automation

Operational efficiency is the backbone of MSP profitability and service quality. Yet, many MSPs today are held back by inefficient, manual processes, which translates into slower service for clients and squeezed margins for the MSP. What’s not working: Despite great advancements in management tools, surveys reveal that MSP teams still spend excessive time on low-value, repetitive tasks. For example, one study found MSP staff spend over 100 hours per month on manual chores like re-entering ticket data between systems, preparing reports for QBRs, and reconciling billing—tasks that could be automated. In interviews, managers admitted that engineers spend “half their week” babysitting these processes instead of focusing on higher-level projects. There’s wide acknowledgment (95% of MSP leaders agree) that automation is required for growth, and that repetitive busywork is blocking strategic initiatives. However, most MSPs estimate they’ve automated fewer than 25% of their core workflows so far. The reasons cited include lack of time to set up automations, disparate tools that don’t talk to each other, and the complexity of custom scripting. This is a clear area where MSPs are not doing well enough currently – they know automation is key, but progress has been uneven and slow. [suppfusion.com]

Focus for 2026: The coming year should be when MSPs aggressively streamline and automate their operations. Efficiency isn’t just about saving money – it directly impacts customer satisfaction (faster, error-free service) and the MSP’s ability to scale without adding headcount. Here are key targets for automation:

  • Integrating Systems: A major source of inefficiency is when the PSA (professional services automation tool, for tickets/billing) doesn’t integrate with the RMM (remote monitoring and management) or other tools – technicians end up copying data from one system to another. In 2026, MSPs should ensure their core platforms are tightly integrated or consider moving to unified platforms. It’s telling that 95% of MSPs say integrating RMM, PSA, backup, and documentation tools is essential. For instance, if a monitoring alert can automatically generate a ticket in the PSA (with all relevant info attached), and that in turn updates documentation and billing records, it cuts out a lot of swivel-chair work. Many MSPs are pursuing tool consolidation – using fewer, more integrated tools – to achieve this. [kaseya.com] [deskday.com]
  • Automating Routine Tasks: Every MSP has a set of mundane tasks that happen daily or weekly – applying patches, updating antivirus definitions, onboarding a new user account, checking backup status, etc. Scripting and RPA (Robotic Process Automation) can handle many of these. By 2026, MSPs should have automated patch management across client devices (with approvals for exceptions), scheduled scripts to resolve common alerts (e.g., auto-restart a service if it stops), and automatic user provisioning workflows (so when a client hires someone, the MSP’s system creates the necessary accounts and permissions through a predefined script). Many MSP tools come with automation capabilities that may be underutilized; now is the time to exploit them fully. As one industry CEO quipped, 2025 was the year of “we should automate that,” and 2026 is the year MSPs must do it – you can’t scale without automation. [provaltech.com]
  • Eliminating Duplicate Work in Client Reporting: As discussed in the CX section, account managers often spend hours collating data for client reports. Automating this reporting is a quick win. MSPs can set up their PSA or BI (business intelligence) tools to pull metrics (tickets resolved, SLA compliance, security events) and generate a polished report or dashboard with minimal human input. This might involve adopting a reporting tool or writing some integrations, but it pays off every quarter, and it allows account managers to spend time on analysis rather than assembly. Some MSPs are adopting client-facing dashboards that are always up-to-date, drastically reducing the need to manually build slide decks. [suppfusion.com]
  • Workflow Automation and AI Ops: Beyond individual tasks, MSPs should examine end-to-end workflows for automation opportunities. For instance, when a monitoring alert comes in (say CPU usage high on a server), a fully automated workflow might create a ticket, run a diagnostic script on the server, attach the results to the ticket, and if a simple threshold condition is met (like a runaway process), even attempt a remediation (kill or restart the process). If that fixes it, the system closes the ticket with notes; if not, it escalates to a human. Achieving such “self-healing” workflows is increasingly possible with AI Ops tools and advanced scripting. The concept of a “Zero-Touch MSP” – where AI handles 90% of tickets and routine changes – is on the horizon and some SMB-focused MSPs will start approaching that model by mastering their vendors’ automation features. [techaisle.com]

To get there, MSPs should overcome barriers by allocating time for automation projects (maybe dedicating a staff member a few hours a week to building automations) and leveraging community scripts and best practices. The new generation of MSP owners, often backed by private equity, are already pushing for this operational efficiency as a mandate. [suppfusion.com], [suppfusion.com]

Example Action – Automation: A 20-person MSP found its engineers were drowning in repetitive tasks and using 10+ different tools that didn’t sync well. In 2026, they embarked on an “Automation Sprint”: First, they consolidated from 3 separate monitoring and ticketing systems to a single unified platform to reduce context switching. Next, they identified the top 5 daily tasks that ate up engineer time – patching Windows, adding new Office365 accounts for clients, resetting passwords, updating tickets, and compiling monthly reports. They created scripts for each: patches now deploy automatically with reports of success/failure; a simple form was built for clients to request new accounts which triggers an automated user creation in all relevant systems; a self-service password reset tool was rolled out; ticket updates between their systems and a major client’s system were linked via API to stop double entry. They also set up a dashboard that pulls data from their PSA to auto-generate QBR slides. Over a few months, they measured a reduction of ~120 hours of busywork per month across the team. Technicians now spend those hours on project work and learning new skills, which benefits both the MSP and its clients through faster project delivery and more informed staff. [kaseya.com] [suppfusion.com]

The lesson is clear: streamlining operations through automation is no longer optional. In 2026, the most successful MSPs will be those who have turned efficiency into a competitive advantage – enabling them to offer faster response times, more consistent service, and even innovative pricing models (because automation can reduce the cost to serve). Clients ultimately benefit from this through fewer errors and quicker service. As MSP commentary notes, the new wave of MSP leadership “expects operational efficiency and scalability” and will prioritize automation and data-driven processes to stay competitive. MSPs should do the same, treating automation not as a one-off project but as an ongoing discipline (continuously finding new ways to eliminate waste and streamline as tools evolve). [suppfusion.com]

7. Investing in Workforce Development and Talent

Behind every successful MSP is a skilled and motivated team. In 2026, human talent remains irreplaceable – even as AI and automation handle more tasks – because people drive the complex problem-solving, relationship management, and strategic planning that set top MSPs apart. The problem: The MSP industry is facing serious talent challenges. There’s a well-documented shortage of IT professionals, especially in high-demand areas like cybersecurity and cloud architecture. According to industry surveys, 52% of MSPs identify hiring and recruiting as their primary challenge, and 68% of IT leaders in MSPs struggle to find cloud and security expertise. The talent gap often forces MSPs to either overwork their existing staff or turn down business. Indeed, burnout is an issue: nearly 40% of MSP techs were working 50+ hour weeks in recent years and 59% had to work through holidays to keep up with workload. Such strain leads to high turnover, which creates a vicious cycle of understaffing. [deskday.com] [kaseya.com]

Moreover, MSPs sometimes underinvest in training their staff. In the rush of daily operations, keeping engineers’ skillsets up-to-date (with new certifications or learning emerging technologies) can fall by the wayside. This leaves teams ill-prepared for new service offerings (like managing a new cloud platform or a new security tool) that clients might demand.

Focus for 2026: MSPs need a multi-pronged strategy to build and maintain a strong workforce, treating talent as a long-term investment:

  • Upskilling and Continuous Learning: Make 2026 the year your MSP implements a formal training program. This could include paying for certifications (e.g. Azure/AWS certifications, cybersecurity certs like CISSP, vendor-specific courses for popular tools). It might mean allocating each engineer a certain number of training hours per quarter that are sacrosanct. By upskilling existing employees, MSPs can fill skill gaps internally. For example, turning a good systems admin into a cloud architect through a structured learning path benefits the MSP far more than trying to hire a cloud architect in a tight market. As one MSP CEO advises, “the MSPs that grow will be the ones that develop the people they already have.”. Also, encourage knowledge sharing within the team (senior engineers mentoring juniors, internal workshops, etc.), which can accelerate learning and increase engagement. [provaltech.com]
  • Use External Support to Augment Staff: When hiring is tough, lean on creative solutions like outsourcing or partnerships. Many MSPs are turning to white-label service providers or contractors for certain functions – e.g. using an outsourced Network Operations Center (NOC) or Security Operations Center (SOC) service that operates under the MSP’s brand. This way, you can offer 24/7 coverage or specialized skills (like advanced cybersecurity analysis) without having to hire for every role. Notably, white-label partnerships have grown ~80% over three years in the MSP space. For an MSP, this could mean partnering with a third-party to handle after-hours support or level-1 tickets, relieving your core team at night. Or outsourcing complex tasks like mobile app support to a niche firm. The key is to convert fixed labor costs into flexible resources – scaling up when needed, scaling down when not, while your clients still experience a seamless service. In 2026, MSPs should evaluate which services are better done in-house versus through partners, and not be afraid to offload non-core or hard-to-hire areas. [deskday.com]
  • Improve Work-Life Balance and Retention: Recognize that burnout will cause you to lose the talent you have. MSP leadership should institute policies to protect their teams from perpetual overwork. This might involve hiring ahead of demand when possible, using automation (as above) to remove after-hours pager fatigue, and enforcing time-off so people can recharge. Flexible work arrangements (remote work options, which are common now) can help retain employees too. Additionally, create clear career paths within the MSP. One reason people leave is the feeling of stagnation; show your techs how they can progress to senior roles, lead specialist positions, or even vCIO-type consulting roles as they grow. Regular 1:1s discussing career goals and aligning training to those goals can improve morale and loyalty. [provaltech.com]
  • Leverage Vendor Training and Communities: Many tech vendors (Microsoft, Cisco, security vendors, etc.) offer extensive training resources for their partners. In the next year, make sure to tap into these vendor-backed training programs. For example, if a new security product is launched that you plan to offer, send engineers to the vendor’s certification course early. Encouraging staff to participate in MSP communities or events (like user groups, webinars, industry conferences) can also spark new ideas and professional growth, which they bring back to your business. The channel is expecting more vendor support in this area – so take advantage of it. [channele2e.com]

Example Action – Workforce: A growing MSP of 15 employees had trouble hiring senior cloud engineers in 2025. In 2026, they took a different approach: they identified two junior techs with interest in cloud and enrolled them in an accelerated Azure training program (funded by the MSP). Within months, those juniors earned certifications and started taking on cloud project work under supervision, filling much of the gap. To cover overnight shifts, the MSP contracted with a reputable NOC service that would handle alerts from midnight to 6 AM, so their on-call engineers could actually rest at night. They also instituted “Tech Fridays” – every second Friday afternoon, the company sets aside client work and all staff focus on learning: taking an online course, lab time, or sharing knowledge with peers. This became a valued perk and led to cross-training (e.g. the security specialist taught a class on advanced firewall management to others). By year-end, employee satisfaction (measured via survey) was up significantly, the MSP’s attrition dropped to near-zero, and their enhanced skills meant they could offer new services (like Azure database management) without external hires.

In summary, solving the talent puzzle is vital for 2026. MSPs should treat their employees as their greatest asset, because they are. A combination of developing internal talent, easing workloads through smart resourcing and automation, and fostering a positive work environment will pay dividends. Not only will this ensure you have the skills to deliver all the advanced services discussed (security, cloud, AI, etc.), but clients will notice stability and expertise in their interactions (frequent turnover or junior, untrained support is a red flag to many customers). Given the tight labor market, MSPs that invest in people will be the ones with the capacity to grow and innovate, whereas those that neglect it may find they can’t meet client needs or quality standards due to staffing shortfalls.

Conclusion: Succeeding in 2026 – From MSP to Business Partner

Entering 2026, MSPs globally – especially those catering to SMBs – must retool and refocus across these critical operational areas. The overarching theme is moving up the value chain: from putting out IT fires to delivering strategic prevention; from offering generic services to providing specialized, client-tailored solutions; from using people for every task to harnessing automation and AI for scalability. The challenges are real – cyber threats are more serious, technology is more complex, competition is fiercer, and clients are more demanding. But so are the opportunities: SMBs are investing heavily in technology and rely on MSPs more than ever for expertise. The MSPs that proactively improve in the areas discussed – security, cloud, AI, customer success, compliance, efficiency, and talent – will position themselves to capture this growth. [deskday.com]

It’s worth noting that in mature IT markets, clients now expect MSPs to behave almost like consulting partners with automation engines, blending advisory insight with flawless execution. This is a useful vision for 2026: an MSP that can talk business outcomes, ensure compliance and security, implement cutting-edge tech (cloud/AI) smoothly, and continually optimize its own operations behind the scenes. Achieving all of this at once is daunting, so MSPs should prioritize incrementally: for example, “secure first, automate second” – shoring up cybersecurity and compliance before layering fancy AI, since automation without security just accelerates risk. They should also pick a focus – mastering one vertical or technical specialty at a time – rather than try to do everything broadly. [deskday.com]

By addressing what is not being done well today and committing to these improvements, MSPs can transform their businesses in 2026. The payoff will be stronger customer relationships (and contract renewals), higher margins (through efficiency and premium services), and sustainable growth even in competitive markets. In contrast, MSPs that cling to the old break-fix, “one-size-fits-all” mindset will increasingly struggle – facing commoditization and client churn as they fail to meet rising standards. [deskday.com]

In conclusion, 2026 is set to be a pivotal year for the MSP industry. It will reward providers who are bold and strategic – those who invest in AI and automation, build deep security and compliance capabilities, tailor their services to client needs, and nurture talented teams. MSPs that embrace these changes will not just survive the evolving landscape, they will thrive as indispensable partners in their customers’ success. The blueprint is clear; now it’s about execution. As the industry saying goes, the MSPs who evolve will lead, and those who don’t will be left behind. By focusing on the areas outlined above, MSPs can ensure they are on the leading side of that equation in 2026.