MDR presents promising opportunity for expanding services without excessive resources
As the demand for cybersecurity solutions continues to surge, there’s significant potential in the “underserved mid-market” for MSPs transitioning to MSSPs. But channel partners “find themselves at a crossroads,” grappling with staffing challenges, evolving customer expectations, and the relentless onslaught of sophisticated threats, according to cybersecurity expert, Michael Wells, of Adlumin.
“MSPs need to consider Managed Detection and Response (MDR) as a promising opportunity, which allows partners to enhance their security offerings without significantly increasing resources, making it an appealing solution for MSPs aiming to transition smoothly to MSSPs,” according to Wells, director alliance channels.
Market demand is there, Wells said. “Customers are now leading the discussion on MDR. Unlike a few years ago when positioning MDR as an attractive solution for smaller customers was necessary, today's customers are more sophisticated and actively seeking solutions.
“For MSPs, the risk is losing clients to external vendors offering services you could potentially provide but haven't yet started. This urgency demands a rapid ramp-up to deliver effective security services, yet finding skilled personnel remains a challenge.”
Admittedly, Wells identified staffing as a critical challenge, noting the difficulty of attracting and retaining talent capable of delivering round-the-clock security services. This remains a key issue as MSPs navigate the complex cybersecurity landscape.
“Market consolidation has led to confusion among MSPs, who are struggling to navigate the myriad of solutions and vendors available. Partners also voice difficulties in navigating the complex security landscape and communicating the value of new offerings to clients, particularly to the mid-market segment.”
Insights from N-able alongside, SentinelOne, Adlumin and HaloPSA discussing how partners can transform their business from an MSP to an MSSP.
‘Innovate and swiftly adapt’
Wells urged the importance of “adaptation and innovation” for channel partners to stay ahead of cybersecurity threats.
"The dynamic MSP industry requires partners to innovate and rapidly adjust to the constantly evolving cybersecurity terrain. Many are embracing a platform-based approach to cybersecurity, acknowledging the necessity of proactive threat detection and response capabilities."
This proactive cybersecurity strategy is vital in today's threat landscape, where cyberattacks can inflict substantial financial and reputational harm.
Wells highlighted the partnership between Adlumin and N-able as an example of successful collaboration addressing the complex challenges faced by MSPs today.
“Our primary goal is to streamline cybersecurity, particularly for organisations, especially those in the small to mid-market segments that previously struggled to afford or access higher tiers of cybersecurity solutions.
“Our collaboration with N-able is a perfect match, as they bring expertise, a robust customer base, and extensive experience in remote monitoring and management, aligning well with our offerings.”
The consolidated platform empowers mid-market entities to procure enterprise-grade security services, bridging the gap for those lacking internal expertise or resources to manage security effectively.
“I refer to this demographic as the underserved market, comprising entities with similar regulatory compliance needs as larger institutions, necessitating the same level of protection. Our focus lies in ensuring this level of security reaches the appropriate hands and entities.”
According to Wells, a primary benefit of MDR is its capacity for ongoing monitoring and swift incident response, empowering organisations to identify and address threats in real-time.
Discussing technological advancements, Wells highlighted the introduction of the ransomware feature, seamlessly integrated into the platform, as particularly noteworthy. "It provides our channel partners with unparalleled peace of mind, particularly given the severe impact of ransomware, comparable to a rapidly spreading fire."
Harnessing automation and AI
What’s more, Wells said MSPs often face challenges in scaling up and reaching the next level of service provision, including difficulties in automation and AI.
Certainly, automation and AI are touted as game-changers in the fight against cyber threats.
Wells said the role of AI in accelerating response times, enabling organisations to mitigate threats in milliseconds rather than minutes. This rapid response is critical, especially with the lightning-fast pace of ransomware attacks. As security threats evolve daily, AI plays a significant role in bridging the skills gap and enhancing cybersecurity capabilities.
However, he cautioned against the dual-edged nature of AI, acknowledging that threat actors are leveraging similar technologies to orchestrate more sophisticated attacks.
“By leveraging advanced technologies, embracing automation, and fostering a culture of trust and collaboration, channel partners can unlock new opportunities for growth and differentiation in the dynamic world of managed security services.” Wells said.
When questioned about prevailing trends, Wells noted that the industry is progressing towards the next phase in security services.
“There was a narrative circulating a few years back about diversifying security vendors to prevent a single point of failure. However, it seems that partners today are seeking solutions that streamline complexity and reduce spending across multiple vendors, opting for convenience.
“This shift towards a platform approach has been validated by larger vendors and is reflected in offerings like Adlumin and N-able MDR. Rather than relying solely on one vendor, we aim to provide a comprehensive security operations platform that integrates with the existing security software solutions used by mid-market entities, promoting a unified platform approach.”
Industry Leaders Share Strategies
Wells' cautionary yet optimistic message underscores the evolving landscape of MSPs and the imperative for strategic adaptation to address the rising cybersecurity demands.
These themes were echoed at a recent breakfast event in Sydney - CRN and N-able MSP Breakfast - which highlighted the urgency of the challenges within the cybersecurity landscape.
The event provided a platform for industry leaders - including Matthew Drake of N-able, Michael Wells of Adlumin, Christian Petrocco of SentinelOne and Daniel Goldsmith of HaloPSA - to delve into pressing issues facing MSPs and shed light on strategies for navigating an increasingly complex threat environment.
Overall, the event provided insights into the evolving landscape of managed services and cybersecurity, highlighting the importance of adaptation, collaboration, and technological innovation in addressing the challenges of an increasingly digital world.
Photos: CRN and N-able host MSP breakfast in Sydney
