Security, compliance and AI are driving demand for managed services, yet operations have become a bottleneck for many providers. Alexander Spaller of Hornetsecurity by Proofpoint explains why consolidation and automation determine profitability.
Demand for security, compliance and AI services is growing, but many managed service providers (MSPs) are coming under operational pressure. Every new service brings additional portals, license models and processes. In this interview with SSCG, Alexander Spaller, Head of Sales DACH at Hornetsecurity by Proofpoint, explains why standardization and consolidation are increasingly becoming a strategic necessity for MSPs and MSSPs. He also addresses the role of AI, Microsoft 365 and distributors.
Interview
Many market observers speak of excellent growth opportunities for MSPs and MSSPs. Do you share that assessment, Mr. Spaller?
Alexander Spaller: Absolutely. Hardly any segment in the channel is developing as dynamically right now as managed services. Companies are looking for support with security, backup, compliance and, increasingly, AI projects. That opens up enormous potential for partners. At the same time, I have observed that the central challenge has shifted: for many MSPs, winning customers is no longer the bottleneck today. The question is how to operate and scale new services economically. The demand is there. The real challenge lies in operations.
Why is operational execution increasingly becoming a problem?
Spaller: Because every additional service usually brings new vendor portals, administration interfaces, license models and operating processes with it. Many partners keep expanding their portfolio without giving enough consideration to the growing complexity. At some point, internal administrative effort grows faster than the actual business. That creates the paradoxical situation in which more revenue does not automatically lead to more profitability.
What role does AI play in this?
Spaller: AI acts as an additional accelerator. Unlike earlier technology trends, customers are actively demanding it today. Many companies want to use Microsoft Copilot or other AI applications productively and expect corresponding support from their service providers. This creates new advisory and service fields for MSPs. At the same time, topics such as data access, permissions, governance and compliance are more important than ever. AI expands the service business considerably, but at the same time raises the requirements for standardized operating models.
At the same time, many vendors keep promoting new solutions. Does the market really need more tools?
Spaller: From the perspective of many service providers, the answer is more likely no. Most MSPs today do not have too few technologies at their disposal, but rather too many. The decisive success factor is therefore consolidation. Partners need to ask themselves how as many services as possible can be mapped onto a shared management and operations platform. Anyone who builds another ecosystem for every new market requirement creates a scaling problem for themselves in the long run. That also means, however, that vendors should adapt their solutions to be platform-oriented.
What does this mean specifically in the Microsoft 365 environment?
Spaller: That is where the challenge becomes particularly visible. Many MSPs manage numerous tenants in parallel. Without centralized management approaches, recurring routine tasks and the constant switching between different customer environments create a high workload. Automation and multi-tenant management are therefore becoming more and more important. They create the foundation for actually turning growth into additional margin, instead of merely generating more administrative work.
What role do distributors and vendors play in this environment?
Spaller: Technology alone is no longer enough. Partners today expect support in building scalable business models. That is why enablement, training, presales support and best practices, such as those offered by the value-added distributor ADN, are becoming significantly more important.
If you had to sum up the development in one sentence: what will determine success in the managed services market in the future?
Spaller: The central question is no longer: “Which additional service can I offer?” but rather: “How can I operate it profitably and repeatably?” MSPs and MSSPs that deliver security, compliance and AI services on a highly standardized and automated basis will be ahead of the pack in the future. Growth will not come from more complexity in the future, but from more simplicity.
About the person
Alexander Spaller is Head of Sales DACH at Hornetsecurity by Proofpoint and has more than 15 years of experience in IT sales. He began his career as a project manager at Dell Technologies Inc., and then worked as an account manager at an IT security reseller. In 2015, he joined Hornetsecurity, where he was initially responsible for key account business in the DACH region. Since 2021, he has headed sales and the expansion of the partner network in DACH.
Dr. Jakob Jung is Editor-in-Chief of Security Storage and Channel Germany. He has been working in IT journalism for more than 20 years. His career includes Computer Reseller News, Heise Resale, Informationweek, Techtarget (storage and data center) and ChannelBiz. He also freelances for numerous IT publications, including Computerwoche, Channelpartner, IT-Business, Storage-Insider and ZDnet. His main topics are channel, storage, security, data center, ERP and CRM.
Contact via Mail: jakob.jung@security-storage-und-channel-germany.de