Unlock New Revenue with AI: The Ultimate Playbook for MSPs Serving SMBs

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Transform your MSP business and your clients’ success with “AI as a Revenue Stream for SMB-Focused MSPs: A Step-by-Step Playbook.”
My comprehensive guide reveals how Managed Service Providers (MSPs) can harness the power of AI—especially Microsoft 365 Copilot—to create profitable, recurring revenue streams while delivering real, measurable value to small and mid-sized business clients.

What’s Inside:

  • Proven Strategies: Learn how to build in-house AI expertise, develop marketable service offerings, and position your MSP as the go-to AI advisor for SMBs.
  • Actionable Playbooks: Step-by-step instructions for AI readiness assessments, Copilot pilot deployments, custom AI solution development, and ongoing managed AI services.
  • Real-World Examples: Discover practical use cases, pricing models, and packaging ideas that have driven success for forward-thinking MSPs.
  • Marketing & Sales Tactics: Get tips on educating your market, overcoming AI skepticism, and using demos and case studies to close deals.
  • ROI-Focused Guidance: Master value-based pricing, SaaS-style subscriptions, and how to clearly demonstrate the business impact of AI for your clients.

Why This Guide?

  • Written by industry experts with deep Microsoft 365 and AI experience.
  • Packed with checklists, templates, and ready-to-use service packages.
  • Designed for immediate action—whether you’re just starting with AI or looking to scale your offerings.

Perfect for:

  • MSPs and IT consultants serving small and mid-sized businesses.
  • Business owners seeking to future-proof their services and boost client retention.
  • Anyone looking to monetize AI and Microsoft Copilot in the real world.

Don’t let your MSP get left behind.
Download “AI as a Revenue Stream for SMB-Focused MSPs” and start building your next growth engine today!

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All the best for the holidays.

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.

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.

Understanding AI

I am not a big fan of the term ‘Artificial Intelligence’ because I really don’t believe what we see today can be truly be classified a ‘intelligence’ but for the sake of consistency I will run with the pack and use the terminology that is out there already.

Clearly, there is a lot of hype in and around AI. It permeates businesses from the smallest to the largest. The thing that we do know for sure is that no one can predict with certainly where the future lies. Honestly, this AI wave seems to be a lot like the cloud computing wave back in the early 2000’s. If this AI stuff follows the predictable historical pattern then my guess is that 2025 will see the peak of inflated expectations as most providers of AI try and generate real ROI for their AI investment dollars.

This, of course, doesn’t mean that AI is going away. However, I do feel that we will see greater ‘real world’ incorporation of AI into everyday business. I came across an idea that I believe will hold true in 2025 that every entity will soon have it’s own AI agent that will act of its behalf. This means individuals, businesses, brands, etc will have their own autonomous AI agents that will conduct business and manage things automatically and intelligently.

This shift to a world full of AI, to me, is a very similar to what I saw with the move to the cloud as I said. That means that in the long term AI is simply going to be a part of the technology landscape and we’ll take it for granted now as we do with using apps on our phone connected just about anywhere to our data. However, while we are still in the growth phase this represents a business opportunity I would suggest.

I was lucky enough to understand the change that cloud computing would bring to the landscape almost 20 years ago now and I see much the same opportunity today. You have to parse you way through the hype and drill down into the business benefits, but I do see them in the not to distant future for just about every business. The starting point I would suggest is to deepen your understanding about not only the technology but also its impact, especially what problems it will solve.

As always, education is the key and I have been doing my best to educate myself. So far I would suggest the following book as the best I have come across so far:

The Coming Wave: Technology, Power, and the Twenty-first Century’s Greatest Dilemma – Mustafa Suleyman,
Michael Bhaskar

and this interview with Mustafa as well, who in fact is now the AI CEO for Microsoft!

Mustafa Suleyman on the coming wave of AI

Unfortunately, as with the move to the cloud back all those years ago, I’m again seeing a hesitancy by SMB IT professionals, MSPs and technology providers from adding AI to their portfolio of skills and services. This, I feel will place them at a great disadvantage as the wave gathers momentum. It is much easier to ride in front of the wave than trying to paddle and catch it. Independent of any bet on the technology, looking at it in pure business terms, I would suggest it is largely green fields and if few are taking advantage then it is generally a risk that is well worthwhile. It is rare that you make good money doing what everyone does. Thus, doing what few are doing is probably the path to greater profitability I would suggest.

It seems to me that most SMB technology providers are most comfortable when they are doing what all their peers are doing. This leads to a commoditisation of these services are there is little differentiation between what different providers offer. I would suggest that you don’t need to throw away everything that you are doing today, however you should take a pragmatic approach and determine what is the least profitable part of your MSP business and stop doing that and replace with something few due, such as AI. We all know that to maximise returns, you should review your portfolio regularly and sell the loss makers. There is also room in most portfolios for an amount of risk. Not 100%, but a certain amount to potentially reap larger rewards. Was Bitcoin a risk back 10 – 15 years ago? Sure, but good judgement would have told you not to bet your house on it. However, a small amount of capital invested in this risk asset would have paid extremely handsome dividends today. As the old adage says ‘you need to speculate to accumulate’.

As I said, education is key and in many cases for traditional MSPs this will also mean a pivot from purely hardware, infrastructure and licenses to using code to solve problems. Luckily, there is an abundance of training and tools to be taken advantage of, with many being free. It is never too late to learn if you have the desire. However, desire without discipline is dreaming. Discipline is planning. Discipline is consistency. Discipline is the differentiator that will separate those who benefit from the AI and those that will again fall behind and struggle to keep up with change as it accelerates even faster than it did with the shift to the cloud.

Success is a journey. It is hard work but importantly it is achievable with nothing more than discipline. You have can give yourself more chance of success by supporting disciple with process, planning and review. If it is challenging for your business to adopt AI and pivot, then it will be the same for every other business. That should inspire you because it means if you can make it happen, then most will not because they fear that same challenge and will not take action. The funny thing is that the action required is generally far less onerous that you think once you actually get started. Overcoming the initial inertia is what keep most people rooted in place. Overcome that initial inertia and you are well on the way, and in fact I would suggest it will be mostly downhill from there. The trick is, just get started.

Fate provides us all with opportunities to succeed. Most procrastinate and say they will be ‘ready’ to begin tomorrow and thus it passed them by because fate waits for no one. You need to make yourself ready for the opportunity that something like AI provides. That comes with commitment and discipline as well as risk of course, but in my books it is a risk well worth taking because standing still is falling behind when it comes to technology. I have seen it before and the chances are that it will play out in a similar way. No one knows for certain but what you do for sure is give yourself the best chance of taking advantage of that opportunity through something as simple as education.

It seems clear that, like the cloud, AI will make the technology landscape a very different place in a few years. However, the question is, will you and your business still be the same as it is now? The answer to that, I would suggest, will determine your success.

Need to Know podcast–Episode 277

In this episode I speak with ex-Microsoftie and now founder of Partner Elevate around the state of the partner channel and the alignment of incentives and campaigns for the modern workplace. I also bring you right up to date on the eve of Microsoft Ignite on exactly what’s the latest with the Microsoft Cloud.

This episode was recorded using Microsoft Teams and produced with Camtasia 2020.

Brought to you by www.ciaopspatron.com

Take a listen and let us know what you think – feedback@needtoknow.cloud

You can listen directly to this episode at:

https://ciaops.podbean.com/e/episode-277-des-russell/

Subscribe via iTunes at:

https://itunes.apple.com/au/podcast/ciaops-need-to-know-podcasts/id406891445?mt=2

The podcast is also available on Stitcher at:

http://www.stitcher.com/podcast/ciaops/need-to-know-podcast?refid=stpr

Don’t forget to give the show a rating as well as send us any feedback or suggestions you may have for the show.

Resources

Des Russell – Linkedin, Partner Elevate, Email – desmond@partnerelevate.com

Web version of Visual Studio Code

Microsoft now the most valuable company

Recent Microsoft earnings

What’s new in Teams for October 2021

Web content filtering is now GA

Manage All Your Surface Devices in a Single Portal

Autofill your addresses and payment info with Microsoft Authenticator

NOBELIUM targeting delegated administrative privileges to facilitate broader attacks

Need to Know podcast–Episode 273

Listen along as I speak with IT business owner David Nicholls from Solve Business Services on his journey to becoming a ‘modern’ cloud IT Professional. David shares the successful processes and approaches he has taken to ‘transform’ his business to be providing cloud support services.

Also, plenty of news and updates from the Microsoft Cloud, including the announcement date for Windows 11. so tune in to stay up to date.

This episode was recorded using Microsoft Teams and produced with Camtasia 2020.

Brought to you by www.ciaopspatron.com

Take a listen and let us know what you think – feedback@needtoknow.cloud

You can listen directly to this episode at:

Episode 273 – David Nicholls (podbean.com)

Subscribe via iTunes at:

https://itunes.apple.com/au/podcast/ciaops-need-to-know-podcasts/id406891445?mt=2

The podcast is also available on Stitcher at:

http://www.stitcher.com/podcast/ciaops/need-to-know-podcast?refid=stpr

Don’t forget to give the show a rating as well as send us any feedback or suggestions you may have for the show.

Resources

David Nicholls – Web, Linkedin

Windows 11 available on October 5

Windows 11 preview is now available on Azure Virtual Desktop

Introducing Microsoft Defender for Endpoint Plan 1

Get free DMARC visibility with Valimail Authenticate and Microsoft Office 365

Announcing Apple M1 native support for Microsoft Defender for Endpoint

Simplifying the Quarantine Experience

Securing your Windows 365 Cloud PCs

Troubleshoot Windows 365 Business Cloud PC setup issues

Need to Know podcast–Episode 234

In this episode I’m back with Brenton to bring you up to date with news from the cloud as well as hopefully give you some resources to help during these challenging times. Also with that in mind I speak with Tim O’Neill from Dicker Data all about what’s happening out there with IT partners and the challenges as well as opportunities.

This episode was recorded using Microsoft Teams and produced with Camtasia 2019

Take a listen and let us know what you think – feedback@needtoknow.cloud

You can listen directly to this episode at:

https://ciaops.podbean.com/e/episode-234-tim-oneill/

Subscribe via iTunes at:

https://itunes.apple.com/au/podcast/ciaops-need-to-know-podcasts/id406891445?mt=2

The podcast is also available on Stitcher at:

http://www.stitcher.com/podcast/ciaops/need-to-know-podcast?refid=stpr

Don’t forget to give the show a rating as well as send us any feedback or suggestions you may have for the show.

Resources

Tim O’Neill – tim.oneill@dickerdata.com.au

@contactbrenton

@directorcia

Teams partner training

9 tips for better online meetings

Microsoft VPN

Intune Training

Corona in Victoria

Covid19 in Australia

Teams 3rd anniversary

Microsoft 365 Business Voice

New Microsoft 365 SKU for Firstline workers

Windows 10 reaches 1 billion active devices

Free E1 license offering from Microsoft

Free Teams exploratory license

Microsoft Inspire cancelled

Transcription

Robert Crane  0:43 
Welcome along to a Need to Know podcast we’ve got the hand sanitizer out and we’ve made sure that we’re all clean and tidy. And we’ve also brought in a fully sanitised Brenton Johnson welcome along Brenton. Good to be back Robert. It is said that we are in some unprecedent Time’s at the moment we take this opportunity to hope everybody is safe staying safe doing the right thing. And this incident or incidents or situation won’t last too much longer. Unfortunately, it would seem it’s going to be at least six months, but fingers crossed that it won’t be hopefully it’s not affecting people to bail out and get on with remote stuff. I know I can. How are you and your customers funny, Brendan?


Brenton Johnson  1:24 
I bronzes sort of fell into the swing of things. People are panicked and having all these problems and whatever. But all my customers just went back to their normal way of working of using teams. And you know, they’re asking a few questions around video conferencing. They may not do a lot of that beforehand, but now they’re doing a lot more of that. And yeah, it’s just all been business as usual for most people. I think the challenge for most people is trying to figure out how to be productive at home for my customers. They’re sort of a month ahead of the pack. Everyone’s trying to bpn back into head office and they don’t have bandwidth and it doesn’t know what to do. And they’re often sleekness sleepless nights. And I’ve basically gone beyond Corp with all my customers. Sure I say zero trust with all my customers years ago. So it’s not really a problem that I have to deal with thankfully.


Robert Crane  2:21 
Well, again, I think it’s obviously going to a major shift, it’s going to change the way a lot of people who have worked this way before, I think it’s going to accelerate this move to the cloud, it’s going to expose those who were hesitant and perhaps aren’t skilled enough in the cloud. So there are some big changes even at the end of all this, I think it is going to be one of these seismic changes in humanity, probably, again, it is something that really seems to be affecting the whole planet. We’re not through it yet. And I think once we finish that we do have an economic situation to deal with as well. That’s going to be a consequence of the shutdown. But since Brent and I are skilled operators and Brent is still making noise in the background. You Even though he’s in a podcast, do you think you’d know by now that we will bring you the best news, we’ll keep it light, we’ll keep it focused on some information for you. And we’ll bring you an interview as well, which I think is relevant for the time. So I’m going to kick it off and let people know that the large Microsoft inspire conference, which is their worldwide partner conference has been cancelled. We just see whether they go virtual. The MVP summit that I was scheduled to attend in probably would have been to a couple of weeks ago, again was cancelled and they ran it virtually there and it very successfully served together very quickly. My interest will be to see whether we get ignite which is the big technical conference cancelled my bet would be on Yes, because they’re already streaming. They’re already doing a lot of that remotely. We will see but basically all the meetings all anything to do with the community is going online and that is forcing a lot of people to get up to speed with it quickly, but I think Microsoft has the skills already in the product. So, see how we go with that. But what else have you seen out there that’s cancelled or shifting to virtual meetings online there. Brenton?


Brenton Johnson  4:13 
Oh, you know, like, I’ve got a client that does all the videos for events and all the AV for events and stuff and you know, everything’s cancelled for them for the foreseeable future. So I think everything’s going to be shifted online. I think one of the big challenges is it takes 12 to 18 months to organise big conference. Most people are planning a conference, the second that the conference ends, is planning the one for two or three years down the track. So I don’t think it’s going to be as simple as Alright, everything’s back on again. But you know, the way that we’re talking about this is pandemic if we can get on top of it. We can have it all over and done within six weeks if they will, can stick to the rules. But it’ll just be a case of how compliant people are. I did find a good, I thought I’d share this one just for Euro, but it’s a Power BI from the Victorian Government. And he talks, it shares a little bit about how the cases are progressing and what where they’re from, and what government area and all of that sort of stuff all down in Power BI.


Robert Crane  5:22 
That’s a good little thing, I did come across that as well. So we’ll share that make sure that’s in the show notes to people, I’ve got one that I found across on GitHub that I recommend. That’s really good as well for regular updates. And hopefully, again, it all starts dropping off but shows you what’s achievable with the tools. And this is obviously something that’s been made public as well. So you can do that with Power BI. So if you remember the Power BI has a free T and he’s able to push out information like this freely as well. That’s pretty darn impressive. So another reason I think to look at the Microsoft Cloud for a lot of your solutions. Now, the other thing that we should mention here too, is that Microsoft is giving people the option For some free or trial licences to start using things like teams and SharePoint and OneDrive work in the cloud, and we’ll make sure that the links for those are in the show notes. There isn’t a one trial licence. I think it’s six months, that people can spin up any one enterprise, he wanted to start using that. And there’s also what’s called a team’s exploratory licence, which again, gives you roughly about six months I believe, to spin up and get experienced with that. So if you have customers that are looking at and and maybe it hasn’t, maybe their cash flow is the impacted. These are two options that they can take out from Microsoft, I know a lot of other providers are doing something similar around the services that they offer. So again, keep an eye out for what’s available. We’ll make sure these ones from Microsoft are in the show notes for you to take advantage of. Now, one of the other things that I saw that was interesting is Microsoft has announced some new first line worker licences. So we used to have just about Basically f1, which was the standard licence, but now, we basically have a f3 and f1. And also we have an office 365 f3. So we have Microsoft 365 f1, Microsoft 365 f3 and office 365 f3. So I don’t know if more skews are a good idea here there are a number of different options available to release with the F three being the more powerful and the office 365 being the cheap and cheerful option, I suppose. But obviously there must be demand for it and people are requiring this for their frontline workers to obviously give them the tools they need to get the job done with the minimal costs. We’ll make sure a link is in the show notes so you can review that see if any of that may be of relevance. See to you what your thoughts you sell any frontline licences out there, Brendan?


Brenton Johnson  7:54 
Yeah, actually the frontline losses, so it was really good because it gives you an option. Mobile Device Management the frontline workers, so you might want to use Intune to manage a device rather than the office 365 run of the mill MDM, the field worker may not need office, which means they don’t really need a Microsoft 365 business. So Microsoft 365 f one. I don’t know what the price of it is, it’s certainly a lot less than a full business premium or business. Microsoft 365 business gives you that mobile device management on the device, it gives them access to teams, it gives them a bit of SharePoint and a mailbox and everything that they need. They get directory, Azure Active Directory p one, which is pretty cool.


Robert Crane  8:49 
And yeah, they basically give you the prices the Microsoft 365 is in US dollars Microsoft f1 will be $4 per user per month. The F three will be $10 Which has obviously more functions and features and the office 365, again, will be $4 per user per month. So that’s the office 365 f3. So the prices are there. And I think like I said, the $4 one is a, probably a great start out for, you know, a lot of people who really don’t need that, you know, their desktop beyond licence. So yeah, sorry about that. What else were you?


Brenton Johnson  9:23 
Scott says, Yeah, just looking at the differences, you know, between their front line one front line three, the f1 and the f3. f3 comes with Windows 1083. And virtual desktop rights, which I think that’s probably a bit of a nod to Windows virtual desktop, perhaps being more of a thing. With some of these portable devices. A lot of frontline workers are on terminals or on tablets. You know, they’re replacing organisations or replacing their written log books with digital ones are using iPad apps, but I think Microsoft seeing a larger vision here, that the frontline workers not going to just be using some simple app that they’ll actually need more powerful tools. And this really enables all of that and gives organisations a surety around a direction if they want to go down that path of building out a dynamics environment. They can use Windows virtual desktop in the cloud, they can connect their tablets to it, you know, five g around the corner, get some pretty good connectivity. There’s really no reason why as frontline workers should be second class citizens anymore.


Robert Crane  10:33 
It’s very interesting. And I think Microsoft obviously has done this research and it’s targeting these markets. I especially like, again, the really, really cheap option the complete mobile worker, I suppose without some of the other heavy native services but the f3 with more functionality and those other additional licences, I think is a good move. So we’ll basically show the details are in the show notes tab. Look at also on the grapevine I hear from people at Microsoft that the windows virtual desktop is in great demand more and more especially larger companies are using the VDI environment to spin up as a replacement as they’ve made users going work remotely. So the windows virtual desktop is, again a really, really big thick, especially in the enterprise. So if you haven’t looked at that, go in again and spend a little time learning about what that is. Now, one of the other things I think that was really interesting was that Microsoft Teams has reached its third anniversary, I read an article that says I think they’re up to over 44 million active users per day. I’m sure that’s much much more as each day progresses and the blog post here that will link will have a number of new features that are coming to it. We have the background blur on iOS so young Brenton can join us on these podcasts with a black background blur from wherever it is. Interesting that’s coming iOS, I’m sure will be not far off from My Android as well. I also like the, there’s a there’s an interesting demo about basically a team’s connected camera that bill had matter on on a helmet. And I think the other one, which I don’t know if it’s gonna work or if it’s cool or whatever, but I like the push to talk, walkie talkie. So basically, you’ll have a phone where you can basically push that and use it like a walkie talkie on a common channel. The advantage of that is if you’re in, for example, a datacenter or somewhere and you need to, you know, communicate with somebody can do some do so with teams, but you no longer have the limit of the radio frequency distance. So again, some really cool stuff coming out and teams is more and more coming every day. Three years is not much for a product that’s beginning to really dominate its market is that red?


Brenton Johnson  12:44 
Well, it’s unbelievable. Like, you know, slack invented the category. You know, to Microsoft went to slack and said, We’d locked by you. They said some stupid amount of money. Microsoft said now we can build it cheaper than that and the amount of integration is going to be too odd for you on it months later they come out with teams and people will like oh wow, this is so close to everything we need already. And over the last three years, it’s it’s certainly got better and better and you know, just these sort of specific use case stuff that they’re building into it are really locked that sort of central place for work where everyone can go to the same place and office 365 and do work together bringing people out of Outlook and bringing them into teams from a you know, an outlook which is a primarily an individual based thing to attain, which is a collaborative. I just really like how how hard this has been pushed by Microsoft. And now that all this stuff is happening around the background. I think there’s a lot of businesses that are a lot better off because of that push and because of the push to the the partners out there going out talking about or getting people comfortable with Getting people familiar with new ways of working? And yeah, you know, like that walkie talkie is a great, great use case, again, in the sense that, you know, radio frequencies aren’t encrypted. And yeah, if you have a police scanner, you can listen to all of that. So having something that Yeah, is is reliant on on something other than distance. And here are the wives is much better. So they really lock it Oh, I want to keep saying the development of the product. And I think the biggest challenge for it’s going to be keeping that simplicity and that ease of use while they continue to add all these features in.


Robert Crane  14:40 
I’m going to show you there’s lots and lots of really cool features coming in the short term and think about think about how many team servers they must be running now in Microsoft data centres and how much they’ve had to spin up to reach demand with children, working from home using teams for teaching and education and now all these employees working with teams as well. It’s pretty good. pressive when you think about it for this, you know, this load that’s come on in such a short period of time to basically be able to accommodate that and more so going forward. So again, have a look at this blog post really interesting stuff, which is coming with teams and lots of features in there, I think that you’d be really excited about. Now one of the other things that I will mention in here is the Microsoft 365 business voice will be available in the US from the first of April. So the voice is basically a package of the Cloud PBX, the PSTN calling licence plus a calling plan from Microsoft. So this is bundled together and will be available in the US it’s already available in the UK and Canada. We are seeing some licencing availability now in Australia. We won’t have this voice playing for a little while, but there are some licencing that will allow you to incorporate third party providers in Microsoft 365 business so we can see the march towards a fully integrated teams with Microsoft 365 business was really exciting. I think this is going to be a huge thing. In the SMB, it’s another great opportunity for partners to jump on and use to be able to spin up a complete phone system from Microsoft without the need to basically provision anything special just add a licence, and everybody uses teams as their front end. So this is gonna be pretty darn impressive, I think when it’s coming out. Now the other one to keep us moving along key is that Windows 10 has finally reached 1 billion devices, 1 billion monthly active users take them a little while longer than they expected. But 1 billion still a pretty impressive number. Isn’t it, Brendan? Hi. Yeah, yet?


Brenton Johnson  16:38 
Yeah, it doesn’t. It blows your mind. Like he can’t understand the scale of a billion. Until you think about it in terms of I probably need to Google this, but it’s something like a million is if you count one second at a time. You know, when you count a million, it’s like seven, eight minutes old. Something or whatever, so nine days, and then if you count to a billion is 34 years. So it’s it’s a huge amount of of people, you just you cannot humanly get your brain around it very easily.


Robert Crane  17:18 
I’ve noticed also too that in the current situation Microsoft has also said that it’s going to delay pushing out feature updates. And I’m going to push security updates, obviously to limit bandwidth for people in the background as well. So you’ll be getting still be getting a security update feature updates, obviously, hopefully, when things calmed down a bit, we’ll be able to get those are flowing through as well. It’s still a billion is a very, very impressive number. All right, what other things have you got your sleeve that we can talk about before we get diving deeper into?


Brenton Johnson  17:49 
Ah, yeah, so I’ve been undergoing some Intune training via YouTube with the Australian guy An American guy and it’s really really good really valuable information in there you know little tips and tricks and war stories in there


Robert Crane  18:15 
about a time you invest I mean, you know, is it you know, ah


Brenton Johnson  18:18 
the videos the videos are around 40 minutes average Joe suppose no one’s an hour and a half you know those sorts of things is two hour one, but those go through each of the areas. So, you know, like I was doing iOS with the apple configurator the other day and we’ll have some problems with it. So went back and watch that video and realise you applied the serial numbers into Intune before you can enrol it with Apple configurator. So I have that I’ve already done this before, but for whatever reason, I didn’t I forgot that step. So you know, just best practices. They got one on nine file move there and So I’ll probably sunk on an iPhone seven look on YouTube now, I’ve sunk of quite a few hours into getting through immersive videos now. And it’s Yes, it’s all that other stuff that’s not necessarily in the docs, like, Oh, this is how we do this. And we still have to run PowerShell for that. And you’ll have to apply this to users not devices, or vice versa. It does work and, you know, you gotta have the right a three licence windows a three licence for this and all those sorts of things. So I might actually try and reach out to these guys and try and get one of them on the podcast probably save our second Steve Hosking. Do you know


Robert Crane  19:40 
me on honestly asking? Yeah, I know. Well, we still have it. Yep. Knowing well.


Brenton Johnson  19:45 
Yeah. So he’s got I don’t at all and Adam grace from Texas, I believe.


Robert Crane  19:52 
Yeah, well, if you can know that you want to do that. Otherwise, I can certainly reach out to him behalf of the podcast and get him to come on and talk about it. So That’s good. Good to know. Yes, I do. I’ll have a look at that stuff that Steve’s done. But yeah, if he’s done it, I highly recommend that you invest the time and have a look at it. Now what about this last link that we’ve got here that you put up about the Microsoft VPN? What can you tell us about that?


Brenton Johnson  20:15 
It’s quite interesting, actually. So this, this came across my LinkedIn feed, I follow all the Microsoft people on LinkedIn and talking about trying to run Microsoft on VPN, because even though Microsoft’s very cloud transformed company, like Marsanne across if not all enterprise companies, they have a lot of on premises resources that they can’t, that they need access for our VPN. Now, when you have 150,000 employees or whatever, you know, trying to manage 150,000 people connecting to a VPN can be really tricky. They talk about how they did it, they said at this time, there’s probably 50 to 60,000 People on their VPN at any one time they’re saying one of the key case of their success was they worked with Windows team and fixed up the internal VPN client in Windows ran better. And they also do split tunnelling. So anything that’s office 365, or cloud or whatever, that all gets sent off through the internet, and then they only send that absolute critical, the VPN only stuff over the VPN. They say if they didn’t have that implemented three years ago, when this whole thing hit, they would just not have been ready for. And it would have been a different story, but because they’ve invested in their infrastructure, you know, that they talk about how they use, I think open VPN protocols and that to keep it all happening. It’s just really fascinating, right? So definitely check it out if you’re particularly interested in how to do VPN at 60,000 user


Robert Crane  22:00 
Well, again, there’s a lot to be learned from these, these sort of things. So again, we’ll put the link in the show notes so that you can review that a lot of information there. We don’t want to overload people, we know that they’ve got a lot on their plate generally, and they’re making adjustments and working from home and that can take a bit of time. So we want to get that information to you. We wish everybody the best. We hope that again, you’re safe, you stay safe and that we aren’t subject to these conditions for too much longer. We will continue to give our best effort to get more information to you and interviews. Hopefully people are available now rather than travelling all over the place. You can stay in contact with us he had at into k podcast on Twitter and Facebook. Feedback at need to know cloud on the emails. And I am at contact is anomaly I’m at director CIA. What about yourself, Brendan, what are you


Brenton Johnson  22:52 
at contact Brenton on the twittersphere if you need if you come into my office, I’m not there. So yeah It’s best to get me via digital means.


Robert Crane  23:03 
Excellent. All right, well, like I said, I will take this opportunity to thank you again for listening to the podcast. We hope you all safe. Remember that if you do have any questions, feel free to reach out to us, I’m sure that we can answer. Also, we understand in this environment, people do suffer from being separated from their normal work environment. So again, if you do feel that you want to just reach out to us for a chat, by all means, feel free to do that. I’m certainly open to do that. So any of those contact details, and we’ll reach out and we can run something to have a bit of a chat. And again, hopefully, give everybody the solace that I need at this point in time. So I think that’s all for me. Before we get into our interview, what about yourself, Brent, anything else?


Brenton Johnson  23:42 
No, I just echo your thoughts. Completely.


Robert Crane  23:47 
All right. Well, thank you very much, everybody, and let’s get into our interview for this episode. Welcome along to this interview, and I’m joined by Tim O’Neill from Dicker Data, welcome along to


Tim O’Neill  24:01 
Robert, thanks very much.


Robert Crane  24:03 
Well, for those listening, we do have a bit of a unique situation. Tim is probably a little bit different from most people we’ve interviewed, he’s not into the, the technical deep dive side of it. He’s not actually selling a product. He’s a distributor. So a bit of a unique view on the market out there. So before we launch into that, Tim, why don’t you just give people a bit of an intro, who you are and what role you feel?


Unknown Speaker  24:29 
Yeah, sure. So I work for a distributor in Australia called tick data. We proudly are the largest Australian owned distributor in Australia and and my role is, I lead the CSP programme, but also, more specifically lead lead the modern workplace programme here in Australia for ticket data.


Robert Crane  24:48 
So why don’t we start there with the concept of the modern workplace so what do you see is the Transformation or the need for the modern workplace in the workplace out there today, what’s the messaging? What’s the reason that, you know, this is something that Microsoft’s taken to market?


Tim O’Neill  25:10 
I think that the first thing we need to do is really kill that myth that modern workplace is just m 365. Because it’s it’s, it’s really not modern workplaces is exactly as it sounds. It’s, it’s the solution that that the Microsoft is bringing to market around the new way that we’re working. And I suppose, yeah, while we’re talking about covert 19, and everything that everyone is facing around the world, we’re starting to work remotely. And so what is that solution? What is the way that we need to support our end users around that modern workplace? So obviously, it’s, it’s we need to look at their security, we need to look at make sure they’ve got, you know, email and, and, and teams and all those things that they need, but what else do they need? What are they do they need things around dynamics and things around Azure? it’s it’s it’s really looking At the fact that under this whole digital transformation concept, we’re working differently. And if we’re working differently, we need to be able to support our end users differently.


Robert Crane  26:12 
I think part of it is that we need an modern platform, as you mentioned, to take full advantage of a lot of these cloud bi services, the ability to work anywhere, as you’ve mentioned, because we’ve come from an environment where people have been on prem for so long, they’ve got servers, they’ve extended and extended and extended. And again, given the current situation where people you know, have to work from home almost all of a sudden, this modern workplace this concept makes sense. But as you say, it’s a much broader spectrum than again, just a new PC or just you know, Microsoft 365. Now, obviously, you spent a lot of time with resellers out there, they are the ones that are interfacing with the clients directly so you’re not selling to clients directly or going through typically an MSP client, how are you finding, you know, their approach to going out and talking to their customers about the modern desktop? Are they armed? And are they educated? And are they up to speed enough to sell this confidently? Do you think in the market,


Tim O’Neill  27:14 
I think we have three buckets, which is frustrating, it’s best, we have that bucket of people that that have sold on prem most of their life, and are trying to move into this, this new way, by still selling the way they sold on prem. Then we have that that group of guys that are very transactional. And really just saying, I’m going to sell you an office 365 licence or an M 365 licence, and I’m going to look at something else. And then you get that smaller group that I think is starting to really get the right skills and the right weapons in their target bag and they’re going out to market and doing and actually doing this well. But I would say, Rob that probably out of the the partners that I deal with, in Australia, a very small percentage would be in that, in that, that they will well prepared and ready to take on the discussion and talk about it. It’s, it’s really as a small group,


Robert Crane  28:19 
I think one of the interesting things we’re going to see, amongst many interesting things in the near future is there, especially in Australia, who we are going to, we’ve already experienced $1 shock for dollars fallen quite dramatically against the US dollar. I think we’re going to see a lot of those transactional prices increase because of the weakness of our dollar that’s going to be very hard for those transactional people to get back to customers. And basically, so we have to increase the prices because of these things, especially given the the environment that those customers are also in as well. I think now, those people that do have the skills Is there a common? Is there a common thing in there? Is there a common trait? Are they a certain size? Or do they sell to a certain demographic? Is it? Is it random? Or is there sort of key attributes you could pull out and share with us that you find with these people who are, you know, basically getting around the modern desktop experience?


Unknown Speaker  29:23 
I think you get that you get that group of people that fall into that, you know, if you do what you’ve always done, you get what you always got. And, you know, I’m comfortable in my business, and I’m comfortable with where this is travelling, and I’m just going to go down this road. I don’t think there’s there’s a a type of partner that actually gets it, I think, or size for that matter. I think what it is, is that there are a group of partners that are looking at what is happening in the marketplace, and they are saying what we’ve done doesn’t isn’t going to work in the future and we need to treat Transition quickly. And it’s those very small group of partners that actually decide to put their hand up and invest in their time and invest in what is happening in the market and are willing to look at taking that to market. And it really is. There’s not even an age group. Yeah. Because I’ve got I’ve got, I’ve got partners who are in their 20s and mid 30s, who are doing it and then I’ve got partners in their 60s who saying I need to change and I need to move and adapt to the to where we’re heading. But I don’t think there is that I think, the partners that I that, that take the time to listen, the take the time to take on board or what what they’re learning about. I think they’re the ones that are really starting to adapt.


Robert Crane  30:47 
It is interesting, I think that you’re right, I don’t see a particularly common trait that you can tie it down to, I think it’s a an awakening moment of transformation moment where it just clicks in They get it and like they see the the change that needs to make or the direction they need to take. And, again, I think the other thing is they appreciate they can’t do this immediately, overnight, they need to prioritise it, they need to make that investment. So where do you see that these customers the good cast, the good retells, where are they making these investments? Where do you think are the key things? I mean, obviously, is it things like education, they’re doing more courses? Or are they creating marketing material? You know, where are they making those investments that differ from the way they would have been doing it on prem? In your experience?


Unknown Speaker  31:37 
I think education is a is a massive part. There needs to be that commitment to actually invest in some into some education, take some time out of the office, or working with with their clients to actually invest in themselves, to learn about those products to actually learn what they need to do and how they do it. But I think it’s a combination and you’ve talked about marketing and You know, and I, and I think one of the things that, that we do with with some of our partners is we actually take them on a journey of how do we productize this solution? How do we put a solution to market that is actually going to meet the requirements of this modern day management. And I, and there’s probably only 10% of my partners that are willing to take that time out and do it. invest the time and and for some of them may be an investment for six months. I’ve actually workshopping this actually coming up with the ideas coming up with the margins, looking at what segments they want to be in, what new segments do they want to be in? How can I take this product to market? How can they make sure that it’s hitting the right the right balance of where they need to be? And that process is quite phenomenal. Now, just for an example, Robert, we are I’ve got one partner, and we started we work with him over a six month period. When we first started working with them. They’d sold three tents, I think they had about 30 sits under management. We went through this process, we came with not just one product isolation, but actually had three levels of support that what they are able to offer, into their into their existing customer base. And over the following three months, they went from transacting about $150 a month to $19,000 a month Australia, just by actually coming to that point where they go, we’re going to invest, this is what we’re going to do. And this is what we’re going to move forward. And we’re going to start offering something modern to our existing bags.


Robert Crane  33:37 
So that would seem to indicate that obviously the customer base the end users are obviously ripe, they’re keen, they’re obviously looking for these sorts of solutions. They’re at least open to these. And I think that’s one of the fallacies many resellers fall into I think Well, my customer never asked for this. They make assumptions that the customers are going to need this or the customers are going to want these And then again, the customer doesn’t know what they don’t know. And I think part of it is presenting this wider range of services and wider things that you can do with tools like agile CRM, all the stuff you’ve mentioned. So, I mean is that again a key thing is is embracing that change embracing these options and then taking that messaging out to customers who are probably I would suggest going to be much more receptive than the many resellers think.


Unknown Speaker  34:27 
I think that I think sometimes resellers don’t take the time to actually show the true value of a product. They get excited about getting that sale and I can see the the buying signs and I can see that the customer wants to go ahead and they drop short on on where they’re heading. I had a my first sales manager that I ever had used to always say over and over again to me. Doesn’t matter whether you’re buying or selling someone someone’s buying and someone Selling. And and I think sometimes we just don’t take the time to actually give the customer all the information about this product. What can it actually do? How can it actually help protect them? How can it actually help improve the productivity? It’s, it’s over the last over the last week. We’ve been working remotely now for the last week with kovat 19 in Australia, and the amount of calls that I’ve got from partners who wrote me up and said,


Tim O’Neill  35:36 
You know what, we’ve talked about 365. We’ve talked about teams or we’ve talked about this. I’ve got customers I need to do now and I don’t know what to do. It’s becoming a very topical topical situation and, and, and it really is that time to, to,invest in this products.


Robert Crane  36:01 
I think also to part of the failure I see. And we’ve seen this in a lot of workshops we’ve run together, is the technical people are very good at technical things, they can, you know, generally set bits and bobs and tick things and understand what these things are. But what I found a significant skill deficit has been around converting the technical to something that a customer can understand. So a good example is things like what’s the benefit of office 365 ATP to an end user, not in technical terms, but in terms that they can understand and make sense for their business. I think that’s where a lot of people again, they’ll look at all the speeds and the feeds and they’ll take it on and maybe they go deep enough, but they don’t invest in that analysis, and look at it and then translate that into something of customer needs. And something like DLP. Data Loss Prevention is another really good example where it would speak to I would think the majority of customers in this day and age. With all the legislation we have about protect data and converting that into customer speak. I mean, would you say that, again, that is a key success feature are these these retailers who are successful are able to take what is a largely very technical product, which has a lot of features and translate that into real value meaning for our customer legacy inside the business,


Unknown Speaker  37:21 
you know, no one wants to feel stupid, and no one wants to ask, what might be considered silly questions and, and I think you hit the nail on the head, you know, if you can take a product like m 365. And excuse the expression but damage down to everyday language. I think that’s a real key and, and you and I, we are we’ve done a lot of workshops together and, and we talked about Delve, you know, and we talked about Azure. And we’ve given that, you know, Azure has been my on demand Data Centre. That makes sense to me that that’s a simple concept for me to understand. So I absolutely think that if You can do that you really going to not only just get that concept across quickly, but then people are going to start to realise how awesome they can use this. And I think that’s a that’s a real key part. And it doesn’t really matter, you know? It you and I’ve talked about, you know, my wife and, and, you know, her understanding of lots of concepts and she has a PhD in molecular biology but but sometimes I need to put things about when we talk about teams or, or M 365, or office 365 into concepts that you can understand in everyday life. And it makes so much makes it so much easier.


Robert Crane  38:44 
I think you’re right, I think that a lot of resellers get lost in you know, their own technology in their own products in their own day to day and I think it takes the skilled person to step back and again, simplify it. for people to understand and that is a real skill that is again not something to be minimised. Now, I think given the current global situation with the Cova 19 situation that that has never been more than four you’ve now got, you know, customers who know they have to work from home. But what does that mean? What do I have to get what, what’s involved and how quickly can I get it and those skill sets and I think we can do this, if you had the education at the school ready to roll out ready to go. But I think this again, he’s gonna be one of these seminal moments where I like to call 2020 which I did at the beginning of the year, the Pocky for so many reasons, and I’m proving to be unfortunately very correct, but it’s really at this point in time we are now he’s gonna create this complete delineation and move so much stuff to working remotely and using these sort of products like teams like stream Microsoft 365 working remotely as well. And I think that unfortunately, a large percentage of the the base, the partner base, has probably been tinkering around at the edges, they really haven’t, you know, got the the gloves on and gone in deep to really understand it and bring it into their business. They’ve just seen it, as you’ve mentioned, as a transactional way to generate a few additional revenue items here and there. So, again, I think this is such a key item. And I suppose that you can look at every threat as an opportunity and say, Well, this is a huge opportunity to go to market and offer this service and potentially get some others who aren’t moving fast enough a lot moving quick enough for customers. So you know, what’s the the demand that’s coming in for you that you’re hearing from partners? Are you getting a lot more calls now with partner saying, you know what, we really need to do this stuff and we need to make it happen tomorrow. Can you help us? Is that the sort of thing that we’re hearing?


Unknown Speaker  40:54 
Absolutely. We’re hearing two things. One thing is I’m hearing from partners are calling me and saying You know, I’ve got I’ve got businesses laying people off, I’ve got businesses who are just folding up and closing because they can’t operate. And then we’ve got those businesses who are partners are coming to me and saying, I need to do this now. I’ve got businesses I need to set up a from home, and I don’t know what to do, what do I do? And I I honestly believe that we’ve got two things happening. The first thing we’ve got happening is we’ve got that that response that we need to act on urgently, and and help partners get their customers up and running. But I think the second thing is, I think the modern workspace in Australia is changing and I think it’s changing dare I say for good. I think we’re gonna see in the future, a lot more remote working. And and this is this is that pivotal moment in time that we’re the we’re seeing that change happen before our eyes.


Robert Crane  41:55 
I think you would agree that what we see is generally been a hesitancy A lot of people are very conservative with their approach to technology, I want to keep my file explorer, I want my files on my local drive, I want everything the way it was I want, you know, word 2003 instead of, you know, 2016 or whatever. But when you get in a situation that we’re currently in, where you have to change, you have not got an option here we have to change, then I think it does force people to make that change opens their eyes. And like I said, I think that this is going to cause a massive shift and people are really going to realise that hang on, you know, this wouldn’t be possible before or we couldn’t have done this or we hadn’t been forced to change this would have and now I’ve got more flexibility and look what we can do. And other than that, so I think you’re 100% right. In the way the approach people are going to look at these when they step back and review it. And we are very lucky that a lot of businesses are able to do that. And to obviously keep going. But I think again, this is where this the it provides There is that key cog. I mean, they talk about essential services medical people, yes, absolutely fireese ambulance drivers fantastic. But again, the it is become such an important layer in the infrastructure, every business in every country these days that there’s that opportunity, but you have to make sure that you are current with the technologies and you’re able to provide that and, and this certainly is going to drive that demand. And we’re seeing that worldwide, not just in Australia. So, again, it’s really gonna make the difference as you say, Now, because this is happening and let’s say that we take it to be your partner, who has been a little bit tinkering around the edges and may not be sure what sort of advice or what sort of support can your organisation yourself provide for these sort of people? Are you giving them any guidance? Are they you know, how can they when they come to you for help? What can what can you do for them?


Unknown Speaker  43:56 
It’s It’s interesting, I actually spent the weekend Putting together a resource library around office 365 m 365. Team security, a whole range of things to make it available for my team to start sharing with partners. Each partner is different each partner has customers that are different, but each partner is looking at how they how do they really allow their their customers to be able to work remotely and to work in a different environment. So it’s it’s really important that, you know, a partner is able to go to the distributor, and actually say, I need help and, and this is what I need to do I need to understand how to do and I’ve been on I’ve been on conference calls today with partners and their own customers taking them through that process. So what we’ve really tried to do at Dickie data, is we really focus in on how can we as a distributor, provide the support structure around the the partner And around their, their end user. So, you know, we’ve done things like taking her after our support to a 24, seven support to be able to support the partner. So it’s really about I suppose a bit of a knowledge transfer, helping you with the customer and at the same time transferring that knowledge to you as to what you can do in the future.


Robert Crane  45:21 
So I think the one of the things I would suggest to you and I think it’s great that you’re providing that I think this is what again, one of these sort of characteristic traits we see of many it providers, they they tend to look at the environment is alone gun, yes, they have peers, yes, they have distributors, but they very much take it all upon themselves. They’re not really into asking for help or, or reaching out until it’s desperate until it’s too late until it’s, you know, again, the fact that we’re all basically beyond the point where it really makes a difference. I think, the secret would be is that you need to reach out early. You need to be Doing this as soon as possible and coming up with a plan and moving forward for today, tomorrow, six months, a year because that timeframe is going to be different. But again, would you be encouraging people to say look, yes, okay, we need to make a plan, we need to reach out early if we need help. Let’s put up our hands and ask for it rather than trying to batten down the hatches and hopefully ride it out until you know, we get to the other side where everything will be the same. Is that a fair statement? That you know from your point of view?


Unknown Speaker  46:28 
Absolutely. And and look, my philosophy around this actually comes from my grandfather and my, my grandfather used to tell a story about a boy that would walk down to the wharf and he saw four silver pieces on the ground. He picked them up. And as he’s walking down down the jetty, he saw six gold coins at the bottom of the water. And there was an old man there and he said, I’ll hold your silver coins for you while you dive down and, and get the gold. And he said, No, no, no, that’s fine. I can do it. And he put his hand in his pocket where he had the silver coins, dived into the water that couldn’t pick up The gold coins, because he had to move something at the bottom of the ocean and end up losing both lots of coins. So I think, you know, the thing is, is that data we see ourselves as an extension of your business. And we want to support you on that I work with you and be part of be part of your team rolling that out. And I think, you know, that’s, that’s a really key part of, of what we’re seeing today in our ecosystem around the market supply.


Robert Crane  47:33 
But also, would it be fair to say that, you know, somebody can’t come to you and in absolute desperation, and wanted all their own way, obviously, there has to be some alignment between you know, what is the direction what can we provide and in this new modern environment, not, you know, selling more servers not doing that sort of thing. So there does have to be a transformation by the partner if they are looking to get this, this sort of support.


Unknown Speaker  47:59 
Absolutely. And that’s I suppose that’s the key part of transformation isn’t that, that you transform first so that you can help others to transform?


Robert Crane  48:09 
I think that’s exactly right. I think that is really part of it is the world has changed and is changing more so every day, but is very different from even the last round of workshops that we did a couple of weeks ago. And we sort of brought this up. And we tried to make people aware that we could end up in the situation that we are in at the moment, but again, it has changed so dramatically, even a couple of weeks, and it’s going to change dramatically, even more so going forward. So let’s let’s just again, pause on the situation now. And when it all comes down, when we get back to inverted commas, you know, normal and you can have a drink and you go to the beach and all this stuff. We can’t do it the moment. You know, what do you see is going to come out the other side of this. I would suspect that there’s going to be a lot of partners who probably aren’t going to make the cut. Why can I survive necessarily because I they’re not getting revenue from customers who may have again, I may have filed as well but they haven’t transformed that ready to move in this environment. And what do you see is the the result once the bushfire as cleaned up all the dead wood there what what do you see on the other side of all this team?


Unknown Speaker  49:21 
A very different ecosystem to what we see today. I think we’re going to see partners that are that have been forced to transform themselves and are transforming their customers. I see a very different working environments what we see today. And I think it’s the, the scary part a little bit is, is that little bit of unknown of what’s not out there at the moment.


Robert Crane  49:50 
I think probably the biggest unknown for most people is simply duration are we looking at, you know, a month, two months, six months, 12 months, you know, again, based on history, it could Roll out to be quite an extensive period of time. So I think that’s the biggest uncertainty and that’s what everybody’s trying to deal with. But, again, I would suggest on the other side, there are things that can be done, there are positives to focus on. We have to let obviously the government do what it needs to do and follow in their requirements of us. But there’s certainly things that we could do proactively to make sure that we can take advantage of getting through this but also getting advantage on the other side of this. So what would you suggest are the top couple of things that, you know, partners should be doing on their own to really put themselves in the best position to benefit from this and to, you know, survive the current situation we’re experiencing?


Unknown Speaker  50:46 
I think they need to reach out to the to the distributor to see what support is available, or auto Microsoft. I know that Microsoft’s looking at the different ways that they can help support partners. At the moment, I think the second thing is that they need to be looking at some some, some guides, some, some sort of information that that helps them about what they can provide into their customer base and actually looking at things like m 365 as a whole. But I think I need to focus on the customer. And they really need to focus in on their customers need.


Robert Crane  51:24 
Yeah, and I think you’re right. I think obviously the need at the moment is we need to get people working remotely, but that will then evolve into into to collaborate together and to share files. We need to have meetings together. We need to do presentations, we need to work with third parties. We need to get them on our meetings as well. How do we optimise that? How do we get the most from that? So there is a big opportunity there for an ongoing, you know, relationship with the customer. I also think too, that this is a point in time to obviously stand up show leadership and let people know that yes. You know, you have a strategy, you have a product you can deliver it you can give people surely in these times, I think that’s going to go a long way to I think a lot of people are looking to providers who, who have a definite strategy who can provide in these times, given the limitations given the challenges that are around there. I think they’re the things that a lot of people are looking for that that certainty when everything else is becoming largely uncertain, and that, again, requires a bit of discipline internally a bit of work. From my point of view, the other thing I would suggest on top of everything is obviously reaching out for help but look at this as an opportunity also for education. Again, there’s lots and lots of YouTube videos from Microsoft Ignite from the teams around Azure from the teams around Microsoft Defender ATP, there is so much learning in there that can be done that again, you hear the cry, I don’t have enough time I don’t have enough time will probably now you do have enough time to look at these so that on the other side, you are expected With these products, especially if you haven’t dedicated that time at sites, I think that part of that is allocating time for everybody in the business to make sure that they are across these information. I think Tim would agree with me that probably one of the best videos you can go and look at is the team’s video with Dr. Coleman from the University of New South Wales was in last year’s inspire on how he integrates his learning using teams and all the services into an environment 500 plus students. I think that’s a magnificent video and very inspirational. But I’ll make sure the link is in there in the show notes and I believe that you’ll have him on a webinar shortly.


Unknown Speaker  53:40 
Yes, in a couple of weeks. We’ll have you on a webinar, which is going to be fantastic. I’ve actually got also john seek from his Microsoft Teams laid out here in Australia with Microsoft will be on that same way. We’ll be on a on a webinar as well. So we’re we’re changing the webinars up a little bit. Just to, I suppose respond to the climate that we’re seeing today to try and get some really good information out to our partners.


Robert Crane  54:08 
Excellent. All right, well, I’ll make sure that I do get those links from Tim. And we could put those up for people who are interested in those. And I would highly recommend those as a source of education as well. I think deca provides a fantastic support for their partners, and we encourage you to get in contact with Tim. And with that said, How can people get in contact with you and also with digger data?


Tim O’Neill  54:34 
Sure. So fire email is a very easy way. So I’m sure Rob that you could


Robert Crane  54:41 
get put on my property near because you have a funny surname with an O apostrophe sometimes and not apostrophe sometimes. So all my


email address


is in there, and that people can refer to that any other resources you’d like to point them towards.


Tim O’Neill  54:59 
Look, I’m going to send you a link Rob for you to share. This link. It’s six videos around teams was released by Microsoft on Friday in response to what we’re what we’re seeing here in Australia right now. So this is this will give, give your listeners something concrete, I can actually go and have a listen to and and hopefully hold on the lock. And obviously you know if they want to get in touch, I’m more than happy to help them out as well.


Robert Crane  55:28 
So I’ll make sure all those details and links are in the show notes for this episode of work to get this out as quickly as possible to get the benefits out there for people take the opportunity to thank Tim for his time his insight. And remember, don’t be afraid to contact him directly to ask for any support. Again, it is challenging times we certainly in at the moment and encourage that you can also contact me as well for any other specific questions. I’m happy to to help people there as well. So once again, I will thank you him for his time on the Need to Know podcast and I will wrap up this episode. Until next time, thanks everybody for listening.


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Audio



A once in ten year opportunity

brown-hourglass-on-brown-wooden-table-1178684

There is no doubt that currently, every business and individual is headed towards some challenging times. The spread of the Corona virus will affect everyone in some way in the near future. The greatest chance of such effects will probably be economically. The slow down in key industries, including travel, transport, logistics, supply, just to name a few will be huge. These impacts will flow onto businesses, both large and small, and finally down to individuals. In short, it seems pretty assured that it won’t be long before we are officially in recession.

Economic downturns are nothing new however. That happen with surprising consistency and regularity. Here’s a brief history recap:

2020 – Corona Virus

2008 – GFC

2000 – Dot Com bubble burst

1997 – Asian financial crisis

1990 – Currency crisis and the Australian recession ‘we had to have’

1987 – Black Monday stock market crash

and so on.

If you look closely a these events you’ll see that are typically spaced around 10 years apart. Not always. Sometimes longer. Sometime shorter but I reckon it is a pretty safe bet to say that we live in times of a 10 year financial cycle from bust to boom.

Theories on such cycles have been establish by everyone from Kondratiev to Ray Dalio and are worth taking a look at. No one theory contains all the answers, but inside most is a piece of the puzzle for those willing to look.

The worrying thing is that we really haven’t fully recovered from the last downturn thanks to GFC even though we have enjoyed record low interest rates. The problem is now that the next economic shock is here and governments no longer have interest rates as a tool to “stimulate” the economy. It would seem that the only way they have left to make money ‘cheaper’ is to print more of it (known as qualitative easing). Many will debate the ability of such an approach to stimulate the economy, and I will leave you to do your own research on that, however my expectation is that such an approach largely benefits the few well off while disadvantaging the majority who see the purchasing power of their savings fall as government printed money (with no backing but merely what the government says it’s worth) floods the economy.

As bad as things look to be shaping up, there is something positive to remember here. Every threat also brings opportunity. However, opportunities are only available to those who position themselves to take advantage of them early. Thus, what I’m saying is that you should be preparing NOW if you want to firstly ride out the coming storm and secondly, if you want to take advantage of the opportunities that will arise because of it. Remember, the Bible tells us that Noah built the Ark BEFORE it rained!

In technology terms, many large business like Microsoft are now touting tools like Microsoft 365 and Teams as ways to work from home and limit the spread of the Corona Virus. Cleverly, they are also offering these tools for free:

Microsoft commitment to customers during COVID-19

This is a very smart move, because as bad as the situation may appear at the moment, it will not last forever. Just like the GF, Dot Com bubble and so on also didn’t last forever. Yes, there was a pull back, but once the threat had passed the economy continued to grow and the business environment did so as well. Chances are that it will be exactly the same this time as well. We just don’t know how long the downturn will last as yet. However, helping people and business today is going to get them on board with what you offer, from which they are unlikely to change as times improve. It also positions you as a ‘helper’ not a ‘panicer’.

What transpires in the short term with Corona Virus will determine the extent of the challenge we all face. That remains the unknown. That’s why now is the time to ensure you have your house in order and you make sure you are prepared for the downturn that is coming. Then and only then can you look externally for the many, many opportunities that will present themselves going forward both personally and professionally.

In short, right now is the unique opportunity in time to set yourself and your business up for the next 10 year up swing that will inevitably follow the current short term outlook. The smart player looks where the ball is going, not where it currently is!