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Where Are SME-MSP Relationships Headed?

It’s critical for managed service providers (MSPs), like any service provider, to keep their finger on the pulse of their clients. Understanding how they think, make decisions, and approach their relationship with you is key to retaining them and bringing on new business. 

Recently, JumpCloud surveyed over 600 IT professionals working at small- to medium-sized enterprises (SMEs). Among many topics, we asked them about how they approach and work with MSPs. On a positive note, the survey found that 76% of SMEs work with MSPs on some level, and 67% plan to increase their investment over the next six months. However, the survey also found that the percentage of SMEs fully outsourcing their IT to MSPs dropped from 42% in early 2024 to 29% in Q3 2024. 

While this trend displays SMEs’ continued investment in MSPs, it also highlights a shift in how SMEs approach their IT needs. This presents opportunities for MSPs to examine their client relationships and offerings to strengthen their partnerships and adapt to client expectations. In this blog, we will explore the ways that SME relationships with MSPs are changing, and how MSPs can adapt. By focusing on areas like cost management and security, MSPs can position themselves as invaluable allies for SMEs.

Note: all data cited in this blog is sourced from JumpCloud’s eBook, Your Route to Positive Client Interactions, unless otherwise cited. 

Adapting to Cost Pressures

One of the biggest challenges in the future of SME-MSP relationships is managing costs. Three-quarters of SMEs have reported rising costs from their vendors (that includes MSPs and other vendors), which puts additional pressure on them as they struggle to balance budgets with ever-increasing tech needs. 

From an MSP perspective, the rising cost pressure on SMEs is significant: 28% have ended their partnerships with MSPs because of cost. Additionally, cost is one of the most common reasons that SMEs choose not to use MSPs, second only to a preference for handling IT internally. 

39% of SMEs that don’t work with MSPs say it’s because MSPs are too expensive. [Source]

How to Adapt

To strengthen future partnerships, MSPs might consider tweaking their pricing models. Offering a range of service packages that include low-cost, flexible options as well as higher priced offerings can help meet the needs of various SMEs, particularly those feeling the squeeze of rising expenses. Creating flexible, lower-cost options can help you keep clients who might otherwise look elsewhere (or internally).

In addition, consider looking to new technologies as a means for lowering prices. Improved remote support technology, for example, could help you reduce your number of in-person client visits, lowering your operational costs and widening your margins. 

Making Security a Priority

Security is another key factor that will shape the future of SME-MSP relationships. While over half (56%) of SMEs believe their security has improved with an MSP, 39% still worry about whether MSPs can effectively protect them. This uncertainty presents both a challenge and an opportunity for MSPs.


39% of SME IT professionals have concerns about the way MSPs manage security. [Source]

How to Adapt

To be seen as trusted partners, consider making security a core part of your service model. This means being open about security practices and demonstrating to clients how you keep their data safe. Regular security check-ups, training for your clients’ staff, and strong security messaging can also help build confidence. You might also consider adding new security-focused packages or services to your list of offerings.

Addressing security concerns directly and proving your commitment to protecting clients can help you strengthen trust and deepen your relationships with SMEs. As cyber threats continue to evolve, maintaining a clear focus on security will help you stand out from the competition.

Improving Customer Experience

The customer experience will be vital in shaping the future of SME-MSP relationships. Nearly a quarter (23%) of SMEs that have stopped working with MSPs did so due to poor customer service or a bad experience with their account or sales teams. This highlights the need for MSPs to focus on how they interact with clients.


For SMEs that have recently stopped working with MSPs, cost was the most common reason, clocking in at 28%. [Source]

How to Adapt

Investing in training for your customer-facing employees and creating a responsive culture can significantly improve client satisfaction. Prioritize the customer experience and routinely seek feedback from clients to understand what you’re doing well and where you can improve.

In addition, consider encouraging happy customers to leave positive reviews to help build your reputation as a trustworthy company that’s easy to work with. As potential clients increasingly rely on feedback from others, showcasing excellent service will be a powerful way to attract new business.

Conclusion: A Collaborative Future

The future of SME-MSP relationships is filled with potential, and SMEs continue to voice their belief in MSPs’ ability to add value to their organizations. Changing expectations and priorities among SMEs present MSPs with a chance to adapt and grow alongside their clients. By addressing cost concerns, focusing on security, and improving the customer experience, MSPs can outshine the competition and strengthen their role as essential partners for SMEs.

This collaborative future calls for alignment between MSPs and SMEs. By understanding and responding to SMEs’ needs, MSPs can build lasting relationships that support growth and success. As SMEs continue to invest in IT support, those MSPs that embrace these opportunities will thrive in the industry.

To dive deeper into these stats and learn more about how SMEs approach their MSP relationships, download the full eBook, Your Route to Positive Client Interactions.

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About JumpCloud
At JumpCloud, our mission is to build a world-class cloud directory. Not just the evolution of Active Directory to the cloud, but a reinvention of how modern IT teams get work done. The JumpCloud Directory Platform is a directory for your users, their IT resources, your fleet of devices, and the secure connections between them with full control, security, and visibility.

Understanding MSP Client Churn and Retention

For managed service providers (MSPs), competition can be stiff, which makes client retention critical. 

Recent findings from JumpCloud’s 2024 SME IT Trends report, however, revealed some indicators of downscaling in small- to medium-sized enterprises’ (SMEs’) MSP contracts: the percentage of SMEs outsourcing their entire IT management has dropped from 42% to 29%. Despite these drops, however, SMEs still seem invested in their MSP relationships: 76% of SMEs use MSPs for some level of IT support, and 67% plan to increase their investment over the next six months. So, how can you leverage SMEs’ continued interest in MSPs, prevent churn, and encourage deeper investments with your SME clients?

This blog will dive into the potential factors driving this downtick in full MSP investment and ideas for retention strategies you can implement to strengthen your client relationships.  

Note: all data cited in this blog is sourced from JumpCloud’s eBook, Your Route to Positive Client Interactions, unless otherwise cited. 

Understanding Churn Drivers

Understanding the factors that are likely contributing to churn and downscaling is the first step to implementing effective retention strategies to reverse the trend. The following are three common churn drivers among SMEs. 

1. Cost and Mismatched Services

One of the leading causes of client churn is cost. With 75% of SMEs reporting rising licensing and subscription fees from their vendors, it’s no wonder that 28% have decided to stop working with MSPs due to affordability concerns.

In addition to cost concerns, many SMEs feel that the services provided by their MSPs are no longer suitable for their evolving needs. For instance, the report reveals that 26% of SMEs believe they have outgrown their MSP’s offerings, 21% find that their MSPs offer more services than they require,and 16% of SMEs expressed that they felt too small to be a priority for their MSP.This mismatch can create frustration and drive customers to look elsewhere for an alternative MSP with offerings that better align with their requirements.

2. The Security Imperative

Security is a significant concern for SMEs, and it plays a critical role in client retention. In fact, 39% of SMEs (both those that use MSPs and those that don’t) express doubts about MSPs’ ability to manage security effectively. This highlights potential for churn for current customers as well as a barrier to entry for SMEs not yet using MSPs. 

Fortunately, more than half (56%) of the SMEs already working with MSPs reported that their MSPs have improved their security posture.This indicates that many MSPs are delivering on their clients’ expectations of security — the problem may lie in their ability to communicate those services and benefits upfront. 

This situation presents a unique opportunity for you to differentiate your services. By making security a cornerstone of your offerings and including your security offerings clearly in your messaging, you can build trust and loyalty among your clients. Additionally, offering security-focused services or add-ons can enhance your value proposition, showing clients that you prioritize their safety.

3. Poor Client Experiences

The client experience is another vital factor in retention. Nearly a quarter (23%) of SMEs have terminated relationships with MSPs due to poor customer service. This statistic highlights the importance of prioritizing every interaction with your clients. Investing in training for your customer-facing staff will empower them to deliver exceptional service and promptly address any concerns.


Nearly a quarter of SMEs have terminated their relationship with MSPs due to poor customer service or a bad experience.

Strategies for Reducing Churn

To effectively combat churn and attract new customers, consider implementing the following strategies:

  1. Diversify your service offerings: Develop flexible service packages that cater to various business sizes and requirements. This approach will help address the concerns of SMEs who may feel underserved or overwhelmed.
  2. Foster open communication: Regularly check in with your clients to assess their satisfaction and evolving needs. Staying aligned with their expectations is critical to maintaining a positive relationship with them.
  3. Implement feedback loops: Actively seek client feedback and respond to it. This will help you identify areas for improvement before they escalate into reasons for termination.
  4. Highlight value beyond cost: Clearly communicate the value you provide — not just in services, but also through enhanced security, compliance support, and the peace of mind that comes with having a dedicated IT partner.

Looking Ahead: Building Lasting Partnerships

By understanding the factors that contribute to client churn, you can strengthen your relationships with SMEs as well as build your customer base. Addressing concerns related to cost, service fit, customer experience, and security will be key to differentiating yourself and communicating your value in a way that resonates with your SME customers.

To dive deeper into these stats and other related to SMEs and how they work with MSPs, check out JumpCloud’s free report, Your Route to Positive Client Interactions.

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About JumpCloud
At JumpCloud, our mission is to build a world-class cloud directory. Not just the evolution of Active Directory to the cloud, but a reinvention of how modern IT teams get work done. The JumpCloud Directory Platform is a directory for your users, their IT resources, your fleet of devices, and the secure connections between them with full control, security, and visibility.

Recent Ransomware Attacks in 2024

After several notorious ransomware gangs were knocked out by law enforcement in 2023, ransomware attacks are on the rise again and soaring to all-time highs in 2024. Many gangs quickly reorganized and reformed, with leaders launching new platforms and expanding their web of bad actors. 

Ransomware attacks are bigger and bolder than ever this year, but even as attackers focus on new targets, small- and medium-sized enterprises (SMEs) remain under threat. With security breaches and ransom prices surging, it’s critical to stay on top of the latest attack tactics, gangs, and news. Let’s see who’s behind the most damaging ransomware attacks this year, and how you can protect your network, customers, and co-workers. 

Recent Ransomware Attacks In 2024

This year ransomware is on pace to cause over $40 billion in losses for organizations in the U.S. Ransoms, lost productivity, and system outages all factor in the equation. And large-scale breaches involving ransomware are not a phenomenon of 2024 at all. But even worse, people’s lives are increasingly put at risk by malicious attackers. These are some of the most alarming attacks of 2024.

September 2024

NHS London: Qilin ransom gang unleashed an attack that compromised the data of almost 1 million National Heathcare System patients in London hospitals. The attackers published personal information about patients with sensitive medical conditions like cancer and sexually transmitted diseases.

Stillwater Mining Company: In September, Stillwater company officials discovered the personal information of over 7,000 employees had been stolen using RansomHub RaaS (Ransomware as a Service). The attack first happened over the summer, but it took Stillwater months to catch on to the breach.

Kawasaki Motors Europe: RansomHub was also behind a major attack on Kawasaki’s European offices. Kawasaki swiftly shut its servers down to isolate the issue and perform recovery operations. RansomHub claims to have stolen almost 500 GB of data.

August 2024

City of Columbus, OH: Rhysida ransom group stole a massive 3TB of data from the City of Columbus, including sensitive employee records and data. After the city refused to meet Rhysida’s ransom price all the data was dumped onto the dark web.

Sumter County, FL Sheriff: Rhysida hit another government target, breaching the Sheriff’s Office systems and potentially compromising 150,000 citizens. Passports, SSNs, and other data was stolen. Rhysida demanded a payment of 7 bitcoin (worth almost half a million dollars).

Keytronic: Electronics manufacturing firm Keytronics reported losing over $17 million due to a ransomware attack by Black Basta, that disrupted production and office operations at its facilities in the U.S. and Mexico.

July 2024

Disney: NullBulge Group stole 1TB of data from Disney’s internal Slack platform and leaked it online. The breach included unreleased Disney projects, concepts, artwork, and code. The hackers asserted they were acting in the name of “artists’ rights.”

AT&T: Hacker group ShinyHunters stole metadata from all call logs and texts made by AT&T customers over a six-month period in 2022.

Rite Aid Pharmacy: Over 2.2 million patients were compromised by RansomHub attackers that posed as Rite Aid employees to steal their data. RansomHub threatened to leak personal information, ID numbers, and driver’s license information obtained from Rite Aid. 

June 2024

Panera Bread: An attack by an unknown group interrupted service on Panera’s website, app, phone systems, and POS systems. Thousands of employee social security numbers and other personal information was also stolen in a major data breach. Internal sources indicate Panera succumbed to the attackers’ demands, paying an undisclosed ransom.

Pandabuy: Giant Chinese shopping platform Pandabuy paid a ransom to prevent stolen customer data from being leaked — but then the hackers immediately demanded another ransom. The ongoing conflict resulted in 3 million rows of customer data being leaked onto BreachForums.

Cleveland, OH: An unknown hacking group forced Cleveland City Hall to temporarily shut down due to a ransomware attack that debilitated city computer systems.

CDK Global: BlackSuit ransomware caused a major IT outage that wreaked havoc on thousands of car dealerships in North America. CDK struggled to restore services to the dealers effectively or in a timely manner, forcing them to pay the ransom so auto dealers could get back online.

May 2024

Wichita, KS: Several government services were shut down to prevent a malware attack from spreading across its entire network. LockBit was responsible for the attack that disrupted payment systems and brought flight operations to a halt at the Wichita airport.

Ascension Health: An “honest mistake” led to a disruption of clinical operations at one of the largest Catholic health providers in the U.S. Black Basta was behind an attack that launched after an employee mistakenly downloaded a malicious file.

Ohio Lottery: 500,000 people were affected by an attack on the Ohio State Lottery. Hacker group DragonForce took credit, and said they gained access to employee and player data including contact information, birthdates, winnings, and social security numbers.

Ticketmaster: ShinyHunters stole credit card details, contact and personal information from over 550 million Ticketmaster/Live Nation customers. The group put the data up for sale on the dark web, priced at half a million dollars.

Aril 2024

Omni Hotels: Daixin ransomware launched an attack that took down Omni Hotels’ network nationwide and impacted reservations, hotel room locks, and POS systems. Daixin posted screenshots of sensitive stolen data from over 3.5 million Omni guests.

Group Health Cooperative (Wisconsin): A BlackSuit data breach stole personal and medical documents from more than 500,000 patients. Systems were shut down for several hours as internal IT teams worked to contain the attack. 

United Nations Development Programme: UN systems were breached by 8Base, disrupting UN operations in Copenhagen. During the attack 8Base claimed to steal massive amounts of confidential information, including accounting records, contracts, invoices, and other official documents.

UnitedHealth Group: BlackCat ransom group, also known as ALPHV, stole 6TB of sensitive patient data. United Health stated the breach caused more than $800 million in financial damages — in addition to meeting BlackCat’s demands for a $22 million ransom.

March 2024

Duvel Brewery: Beer production was brought to a halt at one of Belgium’s largest breweries after a ransomware attack by Stormous.

Crinetics Pharmaceuticals: Internal IT teams uncovered suspicious activity in an employee account — but by the time they had isolated the threat, LockBit posted that they’d breached Crinetics systems and stolen major amounts of data. LockBit demanded a $4 million ransom.

MarineMax: Rhysida ransomware struck the world’s largest luxury yacht dealer, stealing financial information and company records as well as information from a database of the world’s wealthiest customers. Rhysida put the data up for sale for the price of 15 bitcoin.

February 2024

Lurie Children’s Hospital: The Chicago children’s hospital had to take IT systems offline and was forced to delay care for many of its patients. Rhysida set a price of $3.7 million for 600GB of data that may include as many as 200,000 patients. After Lurie refused to meet the price, the data was leaked online.

California SEIU 1000: A union that represents 100,000 California workers suffered network outages after an attack by LockBit. The ransomware gang stole employee SSNs, financial documents, and salary information.

Trans-Northern Pipelines: The Canadian petroleum pipeline operator was hit by a ALPHV ransomware attack. Trans-Northern said their security teams quickly isolated the incident without major issues, but ALPHV claims to have stolen almost 190GB of company data and documents.

January 2024

Fulton County, GA: A LockBit attack crippled Fulton County government systems for weeks, causing problems for utilities, court, and tax networks. Everything from marriage licenses to police operations were affected, and many offices had to resort back to using paper forms during the outage. LockBit claimed they gained access to “confidential documents” and threatened to leak them.

loanDepot: An unknown group disrupted payment systems that disrupted mortgage payments for millions of loanDepot customers. The hackers also stole the data of over 16 million customers, potentially including bank account information. 

Bucks County, PA: Hackers knocked out 911 terminals inside fire, police, and emergency vehicles in a Pennsylvania county home to 650,000 residents. The National Guard was brought in to assist with emergencies as the county attempted to resolve the issue.

Schneider Energy: Cactus ransomware stole terabytes of company data in a breach. The attack compromised over 2,000 enterprise clients including Walmart, PepsiCo, Hilton, and DuPont. It’s unknown whether ransom demands were met. 

Notable Ransomware Groups

Even after coordinated federal and international crackdowns, ransomware gangs are as powerful as ever. Groups that were previously broken up emerged under new criminal organizations, and newer gangs rose to prominence in some of the highest-profile attacks of the year. These are a few of the most dangerous names in ransomware. 

LockBit is a Russian gang with global reach that roared back with a vengeance in 2024 after suffering a defeat when law enforcement took down its platform. LockBit provides RaaS (Ransomware as a Service) and has been the most deployed ransomware since 2022. Because of LockBit’s popularity, attacks can vary greatly in tactics and techniques.

ALPHV/BlackCat was formed after a gang known as BlackMatter’s servers were taken down by a sting in 2021. ALPHV makes some of the most technically advanced ransomware out there, capable of evading even the top cybersecurity systems. They’re thought to have the most experienced and tech savvy network of affiliates, and attack both Windows and Linux systems. ALPHV is one of the only ransom gangs to use a “triple extortion” technique leveraging stolen data, encryption, and denial of service attacks.

Rhysida is a fast-rising, aggressive ransomware gang responsible for some of the most damaging attacks in 2024. Rhysida’s malware was initially considered to be novice, but it rapidly became more elaborate and difficult to detect. Rhysida has led the offensive against healthcare systems and government offices.

Hunters International, ShinyHunters, 8Base, and BlackSuit are other established ransomware gangs that thrived in 2024. DragonForce and RansomHub are newer names emerging as more formidable threats this year.

Several ransomware trends took hold this year, with attackers focusing on bigger targets and demanding bigger payouts to match. Attacks on infrastructure became more common — attackers went hard after healthcare systems, government offices, and supply chain vendors.

Like everyone else, hackers increasingly deployed AI to help them carry out attacks. AI allows malware to adapt in real time to evade security, or can be used to clone voices, email, or other communications to make phishing seem more legit.

Ransomware as a Service continued to grow in popularity, as ransomware providers made their platforms more accessible to bad actors with fewer technical skills. Ransomware also got more sophisticated across the board, taking advantage of zero-day vulnerabilities more frequently and utilizing remote access tools to improve the effectiveness of attacks.

As always, phishing attacks on individual employees were one of the most effective ways for ransomware gangs to exploit systems. Attackers often breached security through individuals in BYOD situations or on SaaS cloud platforms with fewer safeguards.

With ransomware becoming more accessible and sophisticated, it’s predicted that attacks will only get more frequent — and more disruptive — as we head into 2025.

Ransomware Prevention and Protection

Ransomware can be tough to defend against because it can infiltrate an entire network through just one user. The more you can do to protect your users and network, the better chance you’ll have to successfully fend off bad actors.

Best Practices for Preventing Ransomware

These are some tried-and-true methods to help prevent a ransomware attack and keep your network running securely.

  • Keep security patches up to date on all software and services like email, servers, and VPNs.
  • Back up data frequently, on multiple different media formats and keep one off-site copy.
  • Educate users about device safety and how to recognize the latest phishing scams.
  • Utilize AI to fight malware or other malicious threats.

Choosing the Right Security Solutions

The most effective security solutions vary from organization to organization. By taking the time to analyze the specifics around the way your company uses technology, you’ll gain the insights to develop a rock-solid defense strategy.

Recovery and Response Strategies

No matter how good your defenses are, sometimes ransomware sneaks into your system. By having a response plan ready to go, you can mitigate attacks quickly and stave off major damage.

  • Create an incident response plan with standardized protocols for identifying and managing breaches.
  • Isolate the infected system to prevent ransomware from spreading.
  • Remove ransomware with antivirus and antimalware software, then clean the infected system.
  • Restore data from a clean backup source. Refrain from using backups that were made while the system was under attack as they could contain encrypted files that could relaunch the attack.
  • Review your security response and make improvements where vulnerabilities are detected.

If considering a ransom payment, be aware that meeting attackers’ demands usually encourages future attacks.

Secure Identities, Devices, and Access with JumpCloud

JumpCloud brings together a variety of services that bolster your defenses against all sorts of attacks, including ransomware attacks. Whether you leverage JumpCloud to manage your device fleet, end user identities, single sign-on access, or any combination thereof, JumpCloud has the capabilities to help you lock down and protect your organization and minimize your exposure to these types of attacks. 

Learn more about how JumpCloud reduces attack surfaces, makes authentication more reliable and efficient, protects against phishing attacks, and unifies platform and device management across your network.

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About JumpCloud
At JumpCloud, our mission is to build a world-class cloud directory. Not just the evolution of Active Directory to the cloud, but a reinvention of how modern IT teams get work done. The JumpCloud Directory Platform is a directory for your users, their IT resources, your fleet of devices, and the secure connections between them with full control, security, and visibility.

The MSP’s Guide to Passwordless Authentication

Passwords were invented to protect things; to make systems more secure. 

But today? That is no longer the case. 

Instead of a reliable defense, passwords have become one of the weakest links in cybersecurity. Managed service providers (MSPs) face this struggle more than most. They manage countless user credentials, endless reset requests, and defend against password-related breaches across their clientele. 

Cybercriminals are getting smarter. Their ability to exploit weak or reused passwords is a growing threat to the integrity of client systems. Luckily, passwordless authentication provides a more secure alternative to using traditional passwords. Let’s explore why passwords are problematic for your business, how you can benefit from passwordless authentication, and how to implement it successfully.

Why Passwords are a Problem for MSPs

Can you guess the most common password in the world? 

Your guess is probably right. According to Cybernews it is “123456”. While it’s almost impossible to use such a password today due to password policies, weak passwords still lead to data breaches for many users.

In fact, weak passwords were the reason why 30% of internet users have experienced data breaches. For MSPs, making sure this never happens to their client is often the part of the deal. However, cyberattacks are more sophisticated than ever, which makes traditional password-based systems inefficient and risky. 

Some of the key reasons why as an MSP you should start rethinking about your password strategy for your clients:

Weak password practices

Many users continue to use weak passwords. Despite password policies, clients often reuse passwords across multiple platforms. They also create new ones that don’t meet security standards. If a system or app isn’t managed, the MSP may not have any control over the matter. This leaves gaps in client security postures that open the door to brute-force attacks and credential stuffing.

Credential theft and phishing attacks

57% of organizations go through phishing attempts on a weekly or daily basis.

Passwords are often the primary targets for attackers. They focus on credential theft largely through phishing attacks. Therefore organizations that don’t implement passwordless authentication are under higher risk of these attacks. Regardless of the amount of security training you put in place, passwords will always be a risk if they are still in the equation.

Managing client password resets, account lockouts, and other passwords-related tickets consumes a significant amount of an MSPs’ time. This could be used for more critical tasks and strategic IT management instead.

Compliance risks

Compliance regulations like HIPAA, PCI-DSS, GDPR, and SOX mandate stringent guidelines around password policies. Ensuring all client environments meet these requirements can be a challenge, especially when each regulation has its own set of rules. On top of that, if you have multiple clients across different industries, it becomes even more difficult.

Security gaps due to human error

To err is human. Even when password policies are in place, human error leads to security risks. End users might bypass your policies (e.g. using personal information or predictable patterns in passwords) or fall victim to phishing attacks.

Suggested reading:Best Practices for IT Password Security

What is Passwordless Authentication?

Passwordless authentication is a security method that allows users to access applications, systems, and data without the need for a traditional password. Instead of requiring password input, passwordless authentication relies on alternative, more secure methods to verify user identities. These include biometrics, hardware tokens, email or SMS-based one-time passcodes (OTPs), cryptographic keys, and Single Sign-On (SSO).

Passwordless authentication typically relies on multi-factor authentication (MFA) principles, using something the user has (a hardware token or device) or something the user is (biometrics) instead of just something they know (passwords).

Common passwordless authentication methods include:

  • Biometrics (fingerprint, facial recognition, iris scanning)
  • Hardware tokens (USB security keys, smart cards)
  • Mobile authentication apps (authenticator apps, push notifications)
  • Email or SMS verification (magic links, one-time passcodes)
  • Social login (OAuth)

Benefits of Passwordless Authentication for MSPs

Reduced Operational Costs

Implementing passwordless authentication substantially reduces the time spent on password management, help desk support, and password-related security administration,. This helps MSPs lower their operational costs. For example, the time spent on password resets can be converted into more productive tasks that result in an optimized budget and improved service delivery.

Improved Security for Your Client Base, A Compelling Selling Point

Passwords are the weak link in your client’s security chain. By removing that risk from the equation, you also eliminate the vulnerabilities associated with them. Many users still rely on easily guessed or reused passwords. Transitioning to passwordless methods like biometrics or hardware tokens minimizes the risk of credential theft and unauthorized access. 

As an MSP, this shift helps you better protect your clients’ sensitive information from potential data breaches and cyber threats. Providing passwordless authentication capabilities like biometrics for your clients not only secures their data but also creates a compelling selling point for clients looking for top-tier security measures.

Greater Value for Clients, Differentiating in the MSP Market

Going passwordless offers MSPs the opportunity to deliver greater value to clients. It does thisby boosting productivity and user convenience, making it a key differentiator in the competitive MSP market. By eliminating the hassles of traditional password management, such as forgotten passwords and frequent resets, clients experience fewer disruptions and a more seamless experience. 

The reduction in login friction allows employees to focus on their work. Without the constant need for password resets or support requests, end user (and thus client) satisfaction increases. MSPs that leverage passwordless authentication stand out in the market, offering a solution that not only improves security but also adds measurable operational value for clients.

Reduced Help Desk Overhead

According to Gartner, an estimated 40% of IT help desk tickets are password-related, e.g. requests to reset forgotten or lost passwords. Considering that the average cost of an L1 support ticket is between $8 and $18, an organization with 210,000 support tickets a year could end up spending between $672,000 and $1,512,000 only to reset user passwords!

This statistics paints a clear picture of how much you can save on a yearly basis only by going passwordless and eliminating the password-related IT support tickets.

Scalability and Flexibility

As you expand your services and client base, managing authentication across multiple and diverse environments can become increasingly complex. Passwordless solutions scale better. With them MSPs can implement and secure access across various platforms and user bases. This level of flexibility is key for accommodating the unique security needs of each client while ensuring a consistent approach.

How to Implement Passwordless Authentication

Transitioning to a passwordless environment requires careful planning and execution. MSPs should consider the following steps for a smooth implementation:

Step 1. Assess Client Infrastructure and Needs

Start the passwordless authentication implementation process by assessing the client’s IT infrastructure, the applications they use and the security risks they face. Map out the different departments, stakeholders, and workflows they interact with to understand unique use cases. This clear overview helps ensure that the solution fits within the client’s broader security and operational strategy. 

More importantly, by mapping out potential security risks that your client might face due to password-related issues, you can make a stronger value offer and inform them about the importance of passwordless authentication.

Step 2. Choose The Right Passwordless Authentication Method

Once the customer use case is clearly defined, it’s time to identify the best passwordless methods for them. This could mean biometrics, hardware tokens, or mobile-based authentication. Each method has its pros and cons depending on the client’s infrastructure, security needs, and user preferences. For example, biometrics offer a high level of security and convenience but might require special hardware. 

It’s also  equally important to opt for a solution that is MSP-friendly – offering ease of deployment, cross-platform compatibility, and ongoing maintenance. This will save time for you in the long run.

Step 3. Educate Clients, Train End Users

As you prepare to fully deploy your passwordless solution, it’s important to educate your clients about the advantages of this technology. Inform them about how passwordless authentication boosts security, reduces the risk of phishing attacks, and increases employee productivity by eliminating the need to memorize or manage passwords. 

Providing a clear context will not only help clients understand the value of the transition but also fade out any concerns they might have about moving away from traditional methods. 

Once you educate the client, start training the users especially in early stages, to help them adjust to the new process. Making the transition smooth will encourage adoption and reduce any resistance that may come up. As a bonus, try to collect user feedback to fine-tune the process.

JumpCloud Go™: Switching to Passwordless is as Easy as 1,2,3

JumpCloud unified open directory platform makes passwordless authentication a breeze for IT admins and MSPs. JumpCloud Go is a feature within the JumpCloud platform that specifically enables passwordless authentication for users accessing JumpCloud-protected web resources. 

JumpCloud Go simplifies the transition to passwordless authentication by providing an integrated platform that supports a variety of authentication methods, including biometrics and mobile-based verification. (Windows Hello or Touch ID). It streamlines user access across different devices and applications, ensuring a seamless and secure login experience

  • Ensure passwordless login experience across multiple platforms
  • Minimize phishing attacks
  • Let users log in quickly and securely using their trusted devices. 
  • Manage cross-platform user authentication from a single platform
  • Streamline compliance audits by meeting regulatory requirements for a strong authentication

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About JumpCloud
At JumpCloud, our mission is to build a world-class cloud directory. Not just the evolution of Active Directory to the cloud, but a reinvention of how modern IT teams get work done. The JumpCloud Directory Platform is a directory for your users, their IT resources, your fleet of devices, and the secure connections between them with full control, security, and visibility.

Weighing the Value of Apache Hadoop vs. Cloudera

As the Big Data landscape has changed, comparing Apache Hadoop vs. Cloudera and their commercial platform is a worthwhile exercise. Do enterprise teams still need Cloudera for their Big Data stack management or can they save by independently managing their Apache Hadoop implementation?

In this blog, we’ll take a close look at the value of the Cloudera platform’s software bundle, proprietary tools, and cloud-hosting services. We’ll also explore Cloudera alternativesfor organizations that would prefer to not migrate to the cloud and want the freedom to decide where and how to manage their data infrastructure. 

Note: In this blog, references to the Cloudera platform are meant to encompass both the Cloudera Data Platform (CDP) and the legacy product, Cloudera Distribution of Hadoop (CDH).

Apache Hadoop vs. Cloudera: What’s the Difference?

Apache Hadoop is a free, open source data-processing technology that uses a network of computers to solve large data computation via the MapReduce programming model. Cloudera offers a commercial, Hadoop-based platform that is available via paid subscription.

The Cloudera platform is based on Apache Hadoop and various other software packages that, by and large, are part of the broader Apache Hadoop ecosystem. Therefore, many of the features and functions of Cloudera’s platform are available for free via the collection of those foundational open source software packages. 

When customers pay for a Cloudera subscription, they are essentially paying for:

  • A curated bundle of the open source software packages and specific versions that have been validated and proven to work together.
  • A couple of proprietary (not open source) applications that provide conveniences intended to help adopters manage an implementation of these disparate open source software packages.
  • A hosted managed services provider that unites it all in a controlled environment with the promise of stability, availability, and carefree maintenance.

While valuable for some enterprise use cases, these benefits come at a price — particularly the last one, as cloud migrations can be expensive. Because the Big Data landscape is continuously evolving with new solutions coming on the market all the time, it is a good practice to regularly evaluate the return on investment of those features against the cost of managing an equivalent open source stack. 

In the next few sections, we’ll dig deeper into the three bullets mentioned above and compare them to the free equivalents in Apache Hadoop.

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1. Cloudera’s Curated Bundle of OSS

When the Hadoop Ecosystem was an emerging technology, it was beneficial to have a leader in the space like Cloudera piecing together and testing a set of immature open source technologies that were under active development. Cloudera made it so individual companies did not have to dedicate development resources to keep pace with many independently evolving software releases and ensure there were no breaking changes at all the integration points. This can be particularly painful for early adopters, as there are rarely standards or best practices in place to allow product features to evolve independently. Without standards, the products are more tightly coupled and implementations must be more closely managed. 

The situation today, however, is very different. For example, many products now rely on JSON or YAML as the agreed-upon data exchange formats, but those were not in place 20 years ago. Data formats like Parquet and Avro take this a step further. Likewise, there are best practices around RESTful API versioning that many products now implement — and the list goes on. So what would have been very burdensome and resource-draining when Hadoop first emerged is considerably more feasible these days because standards and best practices have caught up. 

This is not to say a controlled and validated environment isn’t a good thing. It just might not deliver as much ROI for organizations as it once did. Furthermore, one must reevaluate being locked into a bundle vs. having flexibility now that more innovative and impactful technologies are available. Specifically, there are a couple of foundational areas where Apache Hadoop has made considerable advancements compared to what you get with the Cloudera implementation of Hadoop, and that’s what we will cover next. 

Execution Services: Oozie vs. Airflow

At a time when more modern organizations are moving toward Apache Airflow for workflow, Cloudera is still shipping with, and relying on, Apache Oozie. Apache Oozie workflows are tied to the Hadoop ecosystem and require unwieldy XML-based definitions. In contrast, Apache Airflow is a more modern, flexible, and scalable workflow and data pipeline management tool that integrates well with cloud services and various systems beyond Hadoop. It has a friendly user interface, a strong community, and advanced error handling. 

Security Services: Navigator & Sentry vs. Atlas & Ranger 

Modern Apache Hadoop implementations use a combination of Apache Atlas and Apache Ranger. Both of these products achieve significant improvements over the legacy Navigator and Sentry. Atlas will be covered again later when highlighting data governance. Apache Ranger has a more user-friendly web-based interface that makes it easier to create and manage security policies. Unlike Sentry, Ranger includes built-in robust auditing capabilities for tracking events and activities across the platform, even outside of Hadoop proper.

To be fair, Cloudera is migrating to these improved options as well, but they are not there yet — leaving CDP implementers saddled with the complexity of a combined solution but unable to benefit from the full set of new features.

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2. Cloudera’s Proprietary Tools for Cluster Management, Cluster Administration, and Data Governance

Cloudera ships two proprietary applications, Cloudera Manager and Cloudera Navigator, to provide implementors with a toolkit for managing and administering their Hadoop Cluster. These applications are essential in offering a cohesive, professional, and useful Hadoop-based Big Data platform. 

However, there are open source alternatives that meet or beat the features available in these proprietary tools. In fact, the most predominant open source versions of these tools were originally developed in the open and handed over to the Apache Foundation by Hortonworks — a company that was purchased by Cloudera in 2019. 

Cloudera Manager vs. Ambari

Cloudera Manager is an administrative application for the Cloudera Data Platform (CDP). It has a web-based user interface and a programmatic API, and is used to provision, configure, manage, and monitor CDP-based Hadoop clusters and associated services.

Apache Hadoop implementors use Apache Ambari (a project with Hortonworks origins) to accomplish what is offered through Cloudera Manager on CDP Hadoop implementations. Apache Ambari has a web-based user interface and a programmatic REST API that allows organizations to provision, manage, and administer Hadoop clusters and associated services.

To take a deeper dive and learn more about the nuanced differences between these tools, see my previous blog: Apache Ambari vs Cloudera Manager

Cloudera Navigator vs. Apache Atlas

Cloudera Navigator handles data governance. It offers a wide range of features for auditing and compliance, from organization policy creation and tracking to regulatory requirements like GDPR and HIPPA. It also includes data lineage tracking to look back upon data transformation and evolution, as well as metadata management for tagging and categorizing data to assist in searching and filtering.

Apache Hadoop implementors use Apache Atlas (also originally developed by Hortonworks) to implement data governance and metadata management. Cloudera Navigator is only applicable to CDP, whereas Apache Atlas works across a broad range of Hadoop distributions and data ecosystems. It is extensible and integrates with other packages, like Apache Hive and Apache HBase.

Apache Atlas logs creation, modification, access, and lineage information about each data asset. It tracks who has accessed or modified data to provide an audit trail for compliance and monitoring purposes. Policies can be defined in Atlas to manage role-based access control (RBAC), attribute-based access control (ABAC), and data masking. To enforce these policies, Atlas integrates with Apache Ranger (another open source package in the Hadoop ecosystem).

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3. Cloudera’s Cloud-Hosting Environment and Managed Services

Measuring the value of where the infrastructure resides will likely be more of a policy question for most organizations. Most organizations have a preference or a requirement that dictates whether they host services in public, private, on-premises, or hybrid clouds. So the real assessment here lies more in the value aligned with the managed services offered by Cloudera. For organizations that are not required to manage and own their own infrastructure, and don’t mind paying for these managed services, this may tip the scales in Cloudera’s favor. 

However, organizations that don’t want to be forced to the cloud should consider whether they have the talent, motivation, and capacity to own and maintain an Apache Hadoop implementation. The maturity of the Hadoop ecosystem and the availability of standardized cloud resources make this a viable alternative to Cloudera — but only if you have the internal resources or a partner like OpenLogic with deep Apache Hadoop expertise.

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Other Considerations 

We outlined some key differences in cluster execution services, cluster security, cluster administration, and data governance between Apache Hadoop and CDP. However, there are a number of other features and functions that are nearly identical for both of these platforms that will require installation, configuration, care, and feeding. These include products like Zookeeper for cluster coordination, and a number of data services that can be applied to meet various needs of an organization. These include, but are not limited to, HDFS, MapReduce, Yarn, Apache Spark, Apache Kafka, HBase, Hive, and Hue.

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Final Thoughts

There was a time when it was easier to associate a clear value for the dollar spend on Cloudera. They were pioneers in Big Data and offered the first commercial bundle of Hadoop. They were the Hadoop provider for many of the Fortune 500 firms. The Cloudera Platform could speed time to market, providing a clear path to a stable Big Data environment that allowed implementers to focus on creating domain-specific applications that leveraged their data — rather than juggling between managing a data platform and making use of their data.

However, nearly two decades have passed since the first incarnation of Hadoop. Cloudera has been involved for over 15 years, and a lot has changed. Hadoop has matured dramatically, and the supporting ecosystem has grown. New open source solutions are being developed all the time, as well as new commercial offerings around Big Data services and support. While there is still an appetite for hands-off, fully managed Big Data platforms like the one that Cloudera offers, the price has driven demand for lower-cost alternatives. For some organizations, using Apache Hadoop and avoiding a costly cloud migration is priceless.  

About Perforce
The best run DevOps teams in the world choose Perforce. Perforce products are purpose-built to develop, build and maintain high-stakes applications. Companies can finally manage complexity, achieve speed without compromise, improve security and compliance, and run their DevOps toolchains with full integrity. With a global footprint spanning more than 80 countries and including over 75% of the Fortune 100, Perforce is trusted by the world’s leading brands to deliver solutions to even the toughest challenges. Accelerate technology delivery, with no shortcuts.

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

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