As the SaaS market matures, security and consolidation concerns continue to grow among vendors. This confirms the importance of MSPs taking into account a series of issues regarding this market when providing services.

The Software as a Service (SaaS) market It continues to grow, with cloud application spending expected to reach $195.2 billion by 2023. That’s up from $146.3 billion in 2021, according to Gartner’s latest forecast.

Added to this is the fact that, according to the forecasts of the consultancy, 85% of organizations will prioritize the cloud by 2025. This is evidenced by the growing number of SaaS-based applications that are currently used.

A recent survey of 740 IT and security professionals found that SaaS applications experienced 18% year-over-year growth between 2021 and 2022, with organizations now using an average of 130 applications.

But what implications does the growth and maturation of the SaaS market have for the MSPs when it comes to managing and protecting these applications ‘as a service’?

These are four fundamental aspects to take into account when developing a strategy for growth and success.

Don’t stop at SaaS security

The rush to the cloud has brought with it an imbalance between spending and security when it comes to the adoption of SaaS-based applications. This is especially true in the environment of the pymes, in which budgets and staff are already under pressure. However, these organizations are realizing that they need to move SaaS security up the priority list to prevent harmful data breaches that they cannot afford.

70% of SMEs list security as their top priority when selecting SaaS applications

According to a recent survey of a sample of small and medium-sized businesses that were asked which criteria are most important for selecting SaaS applications, 70% pointed to safety as your top priority. Second place was occupied by technology, with 61%.

In order to respond to the demands of these companies, MSPs must understand the reality of what they need to provide security for SaaS applications. Applications are not inherently secure and SaaS providers cannot be trusted or expected to provide all necessary security.

The answer to this challenge is to partner with vendor partners that offer solutions that provide efficient and automated security, visibility, monitoring, and improved management of cloud applications.

Monetization as the next step

When MSPs automate SaaS management and add security, they can resell these solutions to customers struggling with fewer staff, misconfigurations of Cloud and the worrying feeling that they are not maintaining the necessary protection for the growing number of SaaS applications used by their customers.

At the operational level, MSPs can use automated threat audits and reporting to show numerical proof that they are adding value. They can help IT strengthen threat defense through remote monitoring, saving staff time. As a trusted security partner, vendors can also educate their customers on general security best practices and preventative measures.

The result will be a more secure SaaS environment for the customer, a new means of monetize SaaS security services for the channel, a way to differentiate one solution provider’s offering from another and an increase in value to the end user.

Opportunities thanks to consolidation

Remote monitoring and management first emerged in the early 1990s as a way for IT organizations to move beyond the repair model and favor a system that allowed them to be proactive in infrastructure maintenance and repairs.

Over time, this market has grown and monitoring and management, previously only available to enterprises due to cost and complexity, has become widely available to SMBs due to innovation and increased competition.

This has led to market consolidation and we are starting to see the same pattern within the SaaS application market, including among vendors of security tools and applications, as they become more accessible to both enterprises and SMBs.

Choice of independent providers

One last piece of advice for MSPs looking to add SaaS security to their technology stack to improve the security of their clients and drive revenue growth is to select an independent provider.

MSPs are encouraged to look for vendors that have invested in developing their integrations and supporting SaaS platforms.

Ongoing industry consolidation makes this the key to long-term success, and MSPs never know when a solution they’re using will be incorporated into another vendor’s solution. As such, MSPs are encouraged to look for vendors that have invested in developing their integrations and supporting SaaS platforms that enable their customers to be secure and productive.

There is no doubt that the SaaS market will continue to mature, and consolidation will prevail and security will remain a priority for businesses of all sizes. MSPs who can build, scale, and monetize their SaaS security and management stack will reap the desired benefits.

Initial image | austin distel