How MSPs can win on efficiency, not just price

Facing increasing client demands and competitive pricing pressures, managed service providers (MSPs) are turning to automation not only to cut costs but also to stay ahead in the market.

During NerdioCon 2025 in La Quinta, California, we had the chance to speak with Jeremy Wallace, principal cloud architect at Safari Micro, an IT services company. Wallace discussed how tools like Nerdio from Microsoft cloud management firm are helping MSPs streamline Azure environments, expedite client onboarding, and allocate senior engineers to more strategic tasks.

While automation offers numerous advantages, Wallace emphasizes the importance of proper planning and architecture to avoid costly issues down the line. From the growing role of AI to the emergence of hybrid cloud solutions, Wallace shares insights on where MSPs should concentrate their efforts, common pitfalls to avoid, and why adaptability is crucial for future success.

In the current economic landscape, MSPs face pressure from price-conscious clients, driving competition and the need for differentiation. Wallace highlights the importance of providing quality services, showcasing expertise, and justifying pricing. Automation plays a key role in reducing costs and improving efficiency, enabling MSPs to deliver better value to clients.

MSPs are focusing on automating tasks like client onboarding, which can be time-consuming. By streamlining this process, MSPs can onboard clients faster and more efficiently, ultimately reducing costs and improving service quality.

Nerdio has been a game-changer for MSPs managing Microsoft Azure environments, simplifying processes and reducing the need for high-level engineering involvement. The platform has revolutionized Virtual Desktop management and expanded its capabilities to include Microsoft 365 services like mailboxes, SharePoint, and Teams.

For MSPs new to Nerdio, the Azure environment offers quick wins and easy opportunities for automation and cost savings. By leveraging Nerdio’s tools, MSPs can expedite client onboarding and streamline cloud management processes.

Automation tools like Nerdio are reshaping the roles within MSPs, allowing for lower-skilled individuals to handle day-to-day tasks while high-level architects oversee operations. Training programs provided by Nerdio enable engineers to quickly adapt to the platform and support clients effectively.

Looking ahead, Microsoft’s cloud ecosystem is shifting towards AI integration, with a focus on enhancing productivity and security. MSPs have the opportunity to leverage AI technologies to drive innovation and create value for clients.

One area that MSPs should explore further is the adaptable cloud, which allows for a hybrid approach to cloud management. Microsoft’s Azure Local solution enables clients to balance cloud and on-premise workloads, optimizing costs and performance.

Common mistakes that MSPs make when approaching automation include neglecting proper planning and architecture. It’s essential to have a solid foundation in place to ensure the success and scalability of automation initiatives.

The future of MSPs is exciting, with advancements in technology like AI driving innovation and transformation. While roles within MSPs may evolve, adaptability and a willingness to embrace new technologies will be key to success in the rapidly changing landscape.