12 July 2019

John Tippett, VP at Datto Networking

New technologies such as Wi-Fi 6, HotSpot 2.0 and AI-based threat detection in the network will all become available to small and medium-sized businesses in the near future – along with a growing range of IoT devices.

While they bring exciting new capabilities, these innovations will also create a level of uncertainty as SMBs lack the expertise to implement them to their best advantage.

Coupled with ongoing GDPR challenges, this means businesses will have to heavily rely on managed service providers’ expertise and support to help manage their business transition to new technology and regulatory standards.

Here, Datto's VP John Tippett reveals the five key trends that he sees as impacting the SMB market over the next year and how they will create substantial opportunities for MSPs.


Tackling the challenges of new technologies, security, and standards across the network

In today’s highly competitive landscape, small and medium-sized enterprises (SMEs) need to be one step ahead if they’re not only to survive but flourish and provide value to their customers. As more and more business functions become dependent on reliable network connectivity, networks can now make or break a business’s reputation with its customers. Therefore, it’s imperative that any issues surrounding the implementation of new standards, regulations, and technologies are addressed by managed service providers (MSPs) and simplified in order for their SME customers to continue to be successful. Here are four networking themes MSPs should keep in mind as the dependency on the network continues to grow.

WiFi 6 will bring new capabilities and new chaos to the channel

Data throughput on WiFi 6 (802.11ax) is higher and more efficient than with previous generation WiFi standards, and the new standard brings support for many more devices to be connected in a given location. The adoption of WiFi 6 will be the catalyst for a comprehensive hardware refresh across the entire industry. Like the advancement of prior WiFi generations, WiFi 6 will create uncertainty in the market over the natural progression of supporting technologies and how market adoption will unfold. Because of these enhancements, its introduction will trigger a wholesale migration of devices to support the new version of the standard. However, like its preceding generations, WiFi 6 will require updates to end-user devices as well as infrastructure including wireless access points and wireless routers. The timing of updates from source equipment coinciding with new end-user devices such as laptops and cell phones will create a race in development amongst hardware manufacturers. As the experts, MSPs will have to coordinate this chaos for their SME clients, making sense of this new and exciting market trend to effectively manage the transition to WiFi 6. Undoubtedly, SMEs will aim to maximize the new technology, and if managed properly the opportunities will abound for the MSPs who are positioned to help them.

As malware evolves, security applications will also have to undergo a significant evolution 

The most susceptible point of entry to a network is no longer at the edge router appliance - it’s the end user. End users need access and security permissions to work, and malicious hackers can trick those users into sharing sensitive information using phishing emails, or by getting them to click on links or download files that look legitimate. When the malware is installed, it can access the network with the same permissions as the infected user’s legitimate credentials, wreaking havoc while freely moving through the network. Over the years, malicious hackers have been forced to evolve their tactics and become more creative in how they bypass defences such as signature-based detection. To combat increasingly sophisticated threats and innovations, network security will have to rapidly shift to leverage machine learning and artificial intelligence (AI). By quickly determining any deviation in “normal” user and machine behaviour, AI-based security detection will enable faster and more effective threat management.

This approach allows for rapid response to any activity that is different and gives administrators the opportunity to review and determine the most secure course of action. Although AI-based security is already a reality in the market, it is still beyond the reach of most SME IT budgets. Over time, however, the price point for AI-based security will decrease, enabling the technology to become more accessible to SMEs. As trusted advisors to the SME market, MSPs will play a critical role in ushering in the adoption of these types of cutting-edge security techniques and helping their clients gain access to these technologies as quickly and efficiently as possible.

The rise of 5G combined with new technologies such as CBRS and HotSpot 2.0 will expand wireless capabilities exponentially

5G is the next-generation mobile technology, and everyone is talking about it. The new technology offers exponentially increased bandwidth than the current generation of 4G technology, which makes it more effective in high-throughput environments and creates opportunities for LTE as a substitute for connectivity to fixed locations as well as IoT devices.

Meanwhile, CBRS and HotSpot 2.0 will become more prevalent and blur the lines between private WiFi and mobile services. These new technologies will combine to fuel the continued growth of mobile - dramatically expanding the potential applications of IoT devices and leading to further decentralisation of computing devices. With these new technology solutions, we will see rapid growth of the IoT and mobile devices, along with innovative new high-bandwidth services as these new technologies are rolled out and the world becomes ever more connected. This explosive growth of devices will add to the challenge of IT departments that have to support them. MSPs will have to help their clients maintain network security and manage the wide range of new devices being utilised.

New regulations will bring new opportunities

New general and sector-specific regulations involving technology are usually created with the best of intentions, but often these same regulations are often rolled out with little regard to the business impact on the SMEs or consideration of how to implement and enforce them. An example of these rules is the recently-introduced General Data Protection Regulation (GDPR), which will create opportunities for MSPs to help SMEs understand and deal with compliance issues. GDPR was created with the desire to enhance protection and ensure data security but doesn’t provide details on exactly how to achieve this from a technical standpoint. With more and more data being stored in the cloud and transferred across wide area networks rather than being secured on a local network, regulations like GDPR are increasingly challenging to manage. The regulatory world is ever-changing and because SMEs are compelled by law to comply with these changes, they will need expert support and guidance on how to accomplish this and will turn to managed services providers for assistance.

While all of the above technologies bring exciting new capabilities, these innovations will also create a level of uncertainty as SMEs lack the expertise to implement them to their best advantage. This means businesses will have to heavily rely on their MSP’s expertise and support to help manage their business transition to new technology and regulatory standards. It’s important that MSPs stay on top of these trends to effectively capitalize on the opportunity and join in the growth of SMEs that is fuelled by the evolution of technology.