Digital transformation initiatives are a growth opportunity for managed service providers. However, a lack of alignment between what small businesses want and what providers believe they should offer is holding that growth back. This is according to a new report released by Techaisle. The IT market research and analyst organization focuses on small to medium-size enterprises (SME) and channel partners.

SMEs are in the middle of transformation initiatives which consume nearly half of an SME’s IT staff’s time. As a result, SMEs look to MSPs to manage this added workload. So they rely on them to build and manage the more performant networks necessary for these initiatives to succeed. The changes and challenges of 2020-2021 accelerated and expanded many SMEs’ digital transformation initiatives. It created opportunities for MSPs to become a partner in that effort.

Digital Transformation with SD-WAN

Anurag Agrawal is founder and chief global analyst at Techaisle.

Techaisle’s Anurag Agrawal

“Reliable connectivity is the foundation for today’s business success,” Agrawal said. “Network performance is a key area where SMEs can use help. MSPs can use SD-WAN to create a competitive advantage and grow their business.”

In the first half of 2021, Bigleaf Networks commissioned Techaisle to survey IT decision makers to better understand what these groups thought about network performance and SD-WAN. According to the report, SMEs believe SD-WAN is a critical technology for enabling digital transformation; however, a large majority of MSPs have yet to deliver SD-WAN solutions. Techaisle found that although 95% of the MSPs offer network monitoring and management, less than one-third offer SD-WAN solutions.

Andrew Bagnato is senior director, MSP sales and partner program at Bigleaf Networks.

“Network monitoring and management are ‘table stakes.’” Bagnato said. “The MSPs who will succeed in the SME market will be those who fill the gap between what they currently offer and what their customers are telling them they really need.”