Survey finds Legacy System Upgrades Top Priority for Aussie MSPs

Facing everything from staff shortages to disrupted supply chains, Australian MSPs have placed the modernisation of legacy computing systems at the top of their to-do lists.

New research conducted by Access4 has found modernisation will be the highest priority for 40 percent of Australian managed service providers (MSPs) during the coming 12 months. This is followed by introducing new products and services (31%) and the integration of SaaS applications (29%).

Asked to name the biggest challenges they face when it comes to undertaking a digital transformation strategy, 53 percent pointed to time constraints. This was followed by resources and budget allocation (42%) and a lack of skills and experience within existing IT teams (40%).

It’s clear that many MSPs are under pressure to complete work required on their IT infrastructures but are facing both time and budgetary restrictions. The ongoing skills crisis is making the situation even tougher.

Usage of AI and automation
Survey respondents were also quizzed on the extent to which they are currently making use of artificial intelligence and automation tools. Of those surveyed, 64 percent said they were already making either very significant or moderate use of such tools. This compares to 36 percent who said they were only making minimal use of the technology.

When asked about whether they are concerned that AI and automation tools could impact their future job security, 75 percent said they were either not at all or not very concerned about the issue. This compared to 21 percent who indicated they were somewhat concerned and just four percent who are very concerned.

The pandemic and IT budgets
Survey respondents were asked to indicate the extent to which the COVID-19 pandemic has had an impact on budget allocations within specific areas of their IT infrastructure.

When it comes to staffing, 51 percent said COVID had led to an increase in spending while 40% said budgets had remained the same. Just nine percent said funding had been reduced.

In the area of IT hardware, just over half (54%) said this had increased while 37 percent said spending had remained constant. When it comes to software, respondents were evenly divided with 47% saying it has increased while the same proportion said it had remained at the same level.

Telecommunications spending
Respondents were also quizzed about their spending on telecommunications services and equipment since the start of the pandemic. Just over half (54%) said costs had remained about the same while 37 percent said they had increased.

When it comes to telecommunications equipment, 47 percent reported spending had remained the same while 39 percent.

Overall, the survey found MSPs have weathered the pandemic disruptions relatively well. By maintaining a focus on business fundamentals, they will be well placed to enjoy strong growth in the months ahead.

Access4 | Sep 16, 2022

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Survey finds Legacy System Upgrades Top Priority for Aussie MSPs

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