AWS re:Invent 2025 - Next-gen MSPs: From service providers to strategic partners. (PEX102)

Summary of AWS re:Invent 2025 - Next-gen MSPs: From service providers to strategic partners

Defining Managed Services

• Managed services is the engagement where the partner actively manages AWS accounts, services, and workloads on the customer's behalf, providing 24/7 management and support.
• Partners can be categorized as:
  • Full stack managed service providers
  • Generalist managed service providers

Customer Needs and Expectations

• Customers are looking for trusted advisors who can:
  • Build long-term relationships and trust
  • Ensure secure and scalable solutions
  • Demonstrate technical mastery
  • Provide comprehensive protection and ongoing optimization

Workload Management Lifecycle

• Initial stabilization period as the MSP reconfigures and optimizes the environment
• Growth period where new workloads are added and continuously optimized
• Operationalized steady state where the customer is spending the right amount

MSP Maturity Model

• The MSP maturity model has 5 stages:
  1. Early/Basic Cloud Reseller: Capacity resell, basic account management, and resold support
  2. Emerging: Reseller with support services or lightweight managed services
  3. Established: Horizontal-based managed services provider focused on infrastructure
  4. Market Leader: Solution-based approach with cloud-native development, business application management, and governance/compliance
  5. Strategic: Industry technology partners or GSIs with global reach, outcome-based engagements, and innovation labs

Key Performance Indicators

• Early/Basic:
  • ACE engagement rate
  • Customers transitioned to basic support/managed services
  • Customer satisfaction and retention
• Emerging:
  • Managed services revenue
  • Recurring revenue customers
  • Service adoption and coverage
  • SLA performance
• Established:
  • Expanded service portfolio
  • Leverage of AI and automation
  • Talent upskilling

Business Impact and ROI

• Profitability increases as MSPs move up the maturity model:
  • Generalist MSPs: $2.50 revenue multiplier, 25-30% gross profit
  • Next-gen MSPs: $4.90 revenue multiplier, 55% gross profit
• AWS partnered with BCG to create an ROI assessment tool, showing a 3-4x return on investment over 5 years with a 2-3 year payback period.

Accelerating the MSP Journey

1. Assess your current state and maturity level
2. Invest in the future by developing new capabilities, upskilling, and hiring
3. Connect with the AWS MSP team for resources and support