Turning MSPs into LSIs: A Strategy to Tackle Shadow IT and Cloud Sprawl

Some Friday Big Ideas.

I want to highlight Rich Freeman’s recent Channelholic, discussing why Managed Service Providers (MSPs) should consider becoming Local Solution Integrators (LSIs). It highlights the potential service opportunity in IT integration and the competition faced by smaller MSPs. The article suggests that small MSPs can emulate global system integrators (GSIs) and provide integration services to businesses too small for GSIs to serve. Integration is seen as a profitable IT service opportunity in the current era of shadow IT and cloud sprawl. The article emphasizes the importance of outcome-based solutions and the need for MSPs to differentiate themselves in the market.

A piece in Hacker News highlights themes I’ve discussed, looking at the rise of AI solutions as the new shadow IT, with employees covertly using AI tools without following established IT and cybersecurity review procedures. While AI tools can boost productivity, they pose serious security risks, mainly when developed by indie AI startups lacking security rigor. These risks include data leakage, content quality issues, product vulnerabilities, and compliance risks. Connecting indie AI tools to enterprise SaaS apps increases the likelihood of backdoor attacks. To reduce these risks, CISOs and cybersecurity teams should focus on standard due diligence, implement or revise application and data policies, provide regular employee training, ask critical questions in vendor assessments, and build relationships with business teams to ensure security is viewed as a resource rather than a roadblock.

With all this AI, I wanted to highlight one on creativity.   Ray Nayler has an opinion piece in Time discussing the impact of artificial intelligence (AI) on creativity and innovation. It argues that AI, despite its sophistication, is incapable of true innovation and can only produce derivative and mediocre work. The author warns that relying on AI tools may discourage human creativity and reduce innovation to mere imitation. The article also highlights the potential danger of mechanization in manipulating consumer demand and creating a complacent buyer with lowered expectations of quality. The article raises concerns about the loss of creativity and originality in a world increasingly driven by AI.

I wasn’t aware of the Local Solution Integrator nomenclature, although I was on board with the approach.     This is the future of the space.

Ponder that creativity angle.  Those who use the tools to boost productivity and harness creativity will be winners in the new paradigm.