The Future of MSPs: Embracing the SaaS Application Layer
- 13/01/2025
- Posted by: Ben Spector
- Category: MSP Sales

The managed services provider (MSP) landscape is changing faster than ever before. As businesses’ technology needs grow increasingly complex, MSPs face both a significant challenge and an unprecedented opportunity. To thrive in this new era, MSPs must embrace their evolution into what we’re calling MSP 2.0—a model focused on delivering strategic value through the SaaS application layer.
Contents
What Is MSP 2.0?
Traditional MSPs (or MSP 1.0) focused primarily on managing physical infrastructure—networks, servers, and endpoint devices. This approach was about keeping the lights on: ensuring connectivity, preventing downtime, and delivering reactive IT support.
MSP 2.0 represents a shift to the application layer. This evolution focuses on managing, optimising, and securing the sprawling SaaS ecosystems that businesses rely on today. With organisations increasingly adopting SaaS tools to drive productivity, collaboration, and innovation, MSPs have an opportunity to expand their role as strategic technology partners.
Why the Shift Is Necessary
- SaaS Proliferation: Businesses are adopting SaaS applications at an unprecedented rate, creating a phenomenon known as SaaS sprawl. This creates challenges for IT teams—managing integrations, optimising costs, and maintaining security—that traditional MSP services do not address.
- Client Expectations: Clients are no longer satisfied with break-fix IT services or basic monitoring. They expect proactive insights and recommendations on how technology can support their business objectives.
- AI and Automation: As AI becomes embedded into SaaS applications, clients are looking to their MSPs to guide them through adoption, integration, and optimisation, adding a new layer of complexity to their expectations.
- Competitive Advantage: MSPs who don’t evolve risk being left behind as more forward-thinking providers offer higher-value services tailored to the modern tech stack.
Opportunities for MSPs in the SaaS Application Layer
1. Become the Productivity Partner
SaaS tools promise to revolutionise productivity, but businesses often struggle to unlock their full potential. MSPs can position themselves as the experts in SaaS adoption and optimisation, helping clients choose the right tools, configure them for maximum value, and train their teams to use them effectively.
- Example Opportunity: Audit a client’s SaaS usage to identify overlapping licences, underutilised features, or missed integration opportunities, then recommend a streamlined stack.
2. Solve SaaS Sprawl
With dozens (or even hundreds) of SaaS applications in use across a business, managing them effectively is a major pain point. MSPs can step in to consolidate SaaS management under one roof, offering clients simplicity and control.
- How to Do It: Use SaaS management platforms (SMPs) to monitor application usage, optimise costs, and enforce security policies across your clients’ stacks.
3. Build and Manage Cross-Platform Ecosystems
Few businesses operate exclusively within one ecosystem, such as Microsoft or Google Workspace. Clients need help integrating disparate tools—from collaboration apps to CRMs and marketing platforms—into a cohesive and efficient environment.
- Key Role for MSPs: Provide integration services and create workflows that bridge gaps between platforms, ensuring seamless data flow and improved productivity.
4. Capitalise on AI Opportunities
Clients are increasingly looking for ways to leverage AI within their SaaS environments to gain insights, automate workflows, and reduce manual effort. MSPs can become trusted advisers in AI adoption, identifying tools that meet specific needs and ensuring smooth implementation.
- Example Service: Help a client set up AI-powered tools for automating customer support or generating actionable insights from operational data.
5. Enhance Cybersecurity for SaaS
As SaaS adoption grows, so do the associated risks. MSPs must evolve their cybersecurity offerings to include SaaS-specific security services, such as monitoring for unauthorised access, securing APIs, and managing user permissions.
- What This Means: MSPs can expand their role as protectors of their clients’ digital environments by offering SaaS-focused cybersecurity packages.
How to Transition to MSP 2.0
Step 1: Embrace the Mindset
The move to MSP 2.0 isn’t just about adding new services; it’s about adopting a new way of thinking. Position yourself as a strategic partner who empowers clients to achieve their goals through technology, rather than simply a support provider.
Step 2: Build SaaS Expertise
Invest in training and tools to understand the SaaS landscape deeply. Familiarise yourself with popular applications, their integrations, and their pain points. Become an expert in SaaS management platforms to scale your ability to manage sprawling tech stacks.
Step 3: Develop Proactive Services
Shift from reactive to proactive services. This could include regular SaaS audits, onboarding and training programmes, and creating custom workflows tailored to your clients’ industries.
Step 4: Partner with Vendors
Forge strong relationships with SaaS vendors to gain access to partner programmes, resources, and training. This will also help you offer better support and insights to your clients.
Step 5: Market Your Value
Clearly communicate your role as an MSP 2.0 provider. Highlight your ability to manage SaaS sprawl, deliver cross-platform integrations, and unlock productivity and security benefits for your clients.
Conclusion: The Time to Act Is Now
The IT channel is evolving rapidly, and the MSPs who embrace the shift to MSP 2.0 will thrive. By positioning yourself at the forefront of the SaaS application layer, you can not only secure your relevance but also unlock significant growth opportunities. The businesses you support need you to guide them through this transition. Will you be the partner they turn to?
Now is the time to embrace the future of MSPs. Build your expertise, adapt your services, and lead your clients into the next era of IT management.