Business applications are in the midst of a massive disruption, a trend that will continue in 2024. From increased cybersecurity risks to the influx of artificial intelligence (AI)-powered functionality to evolving business needs, MSPs need to know what to expect from their software-as-a-service (SaaS) and cloud-based applications and solutions next year. We asked several members of the GTIA SaaS Ecosystem Advisory Council for their predictions. Here’s what they had to say:
Coming Soon From MSPs Near You: Vertical SaaS Solutions
“There will likely be a surge in vertical SaaS solutions tailored to specific industries. This trend will be driven by the growing demand for customized software that caters to the unique needs of different sectors such as healthcare, finance, education and manufacturing. MSPs must specialize in these vertical markets to provide more targeted and effective services. This specialization will require a deep understanding of each industry's specific challenges and needs, enabling MSPs to offer tailored solutions that add significant value to their clients.” — Luis Giraldo, chief experience officer, ScalePad, and vice chair of the GTIA SaaS Ecosystem Advisory Council
Strength in Unity: SaaS, AI and Automation
“SaaS platforms are expected to integrate AI and automation technologies increasingly. This integration will improve operational efficiency, offer better customer experiences and provide more insightful analytics. For MSPs, this means an opportunity to offer more sophisticated services that leverage AI for predictive analytics, automated customer support and streamlined business processes. The MSPs that can effectively incorporate AI and automation into their service offerings will likely have a competitive advantage.” — Luis Giraldo, chief experience officer, ScalePad, and vice chair of the GTIA SaaS Ecosystem Advisory Council
Security, Compliance Needs Will Drive SaaS Enhancements
“As cybersecurity threats evolve, SaaS providers will likely focus more on enhancing security features and compliance capabilities. This shift will be driven by the growing need for businesses to adhere to various regulations and protect sensitive data. MSPs will play a crucial role in helping clients navigate these security challenges, offering services that ensure SaaS applications meet the necessary compliance standards and are secure against emerging threats.” — Luis Giraldo, chief experience officer, ScalePad, and vice chair of the GTIA SaaS Ecosystem Advisory Council
Increased Partnerships Between MSPs, SaaS Developers
“From my past perspective in the MSP sector, reducing friction with our clients has always been paramount. In 2024, I anticipate a significant shift where SaaS providers will actively collaborate with MSPs to enhance this effort. This movement will be characterized by concerted initiatives to streamline processes, making interactions and services more intuitive and user-friendly for end clients. This evolution in the SaaS landscape will mark a deliberate and collective stride towards simplifying and optimizing the client experience.” — Katie Vreeland, head of marketing, Thread, and member of the GTIA SaaS Ecosystem Advisory Council
Embedding Artificial Intelligence in SaaS Platforms
“As AI adoption escalates, I foresee a significant shift where AI integration becomes the norm in SaaS offerings. This trend will not just be about adopting AI for its own sake but focusing it on enhancing end-user support. Soon, AI capabilities in SaaS will transition from a novelty to a necessity, with platforms lacking this integration perceived as outdated.” — Katie Vreeland, head of marketing, Thread, and member of the GTIA SaaS Ecosystem Advisory Council
As Hybrid/Remote Workforce Dust Settles, SaaS Investments Get Smarter
“I believe that both MSP and internal IT teams will face a similar set of issues that have emerged since the rapid digital transformation that occurred since the shifts of COVID. Organizations rapidly moved to remote-first and hybrid workforces and, as a result, adopted many new cloud and SaaS technologies to make their business work in the new normal. Now that the dust has settled and organizations are starting to have a consistent environment to work within, there will be significant investment into identifying these applications that were roguely adopted (shadow IT) and ones that were under-adopted (wasted SaaS spend). We’re in an era where we use a myriad of SaaS to do simple things, such as scheduling a meeting, and we’ll soon have to make a shift internally to understand what is being used, what is being wasted and what is driving our businesses effectively.” — John Harden, director of product, SaaS management, Auvik, and co-chair of the GTIA SaaS Ecosystem Advisory Council
Companies Sort Out the Difference Between “AI” and (Real) AI Features
“AI is in everything nowadays (even when sometimes it isn’t). Every SaaS vendor rapidly reacted to the growth of ChatGPT and introduced their version of “AI” in their software. As a result, in 2024, we will need to look at our vendors adopting AI and understand what type of AI they are using, what data is being fed into these systems, and how that data is being handled. Third-party vendor assessments must begin including questions about AI in SaaS vendor tools. They should require an understanding of what models (open vs. closed), iterations of the model (GPT-3.5, GPT4), etc. are being used. As with any advent of technology, identifying what is in use is at the heart of security and IT.” — John Harden, director of product, SaaS management, Auvik, and co-chair of the GTIA SaaS Ecosystem Advisory Council
More Emphasis on Information, Inventory Will Protect Businesses
“SaaS management needs will continue to grow as we see many third-party vendors as part of security incidents. This is creating a compounding and growing set of accessible company information on the dark web, which causes a cascading-like effect. The more information available, the more likely that information can be used to breach an organization. Thus the need for an accurate inventory of what systems are being used is critical. Knowing what you have in your organization is critical, but even more so to help identify risks of supply-chain attacks.” — John Harden, director of product, SaaS management, Auvik, and co-chair of the GTIA SaaS Ecosystem Advisory Council
Customers Will Expect Compliance Validation, Attestation
“Increased federal and state regulations will drive compliance to the forefront for nearly all industries that work with sensitive information. MSPs and their clients will start to feel pressure from all sides as states and industry leaders rush to fill the void created by a lack of a universal federal security standard. Even if the law doesn't specifically place your organization under a compliance standard your clients are going to start demanding third-party attestation or validation before they hand over the keys to their sensitive data. MSPs will find themselves asked to illustrate their own compliance and security programs as a prerequisite to doing business in nearly all sectors.” — Paul Redding, vice president of channel engagement and cybersecurity, Compliancy Group, and member of the GTIA SaaS Ecosystem Advisory Council
AI Will Bring Innovations, But Also Industry-Specific Risks
“Medical practitioners, attorneys and financial services groups will be among the industry leaders struggling to take advantage of the improved efficiencies AI provides while mitigating the expanded risk this technology inevitably creates. MSPs and other IT services providers will need to both educate their clients and adapt their own security protocols to address this evolving landscape.” — Paul Redding, vice president of channel engagement and cybersecurity, Compliancy Group, and member of the GTIA SaaS Ecosystem Advisory Council
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