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AI Regulation

MSPs Prioritize Data Governance and AI Readiness Amid Rising Compliance Demands

MSPs emphasize data governance and AI readiness as compliance demands surge, with AvePoint’s focus on securing Microsoft 365 driving new service models.

Senior leaders from the UK managed service provider (MSP) sector gathered in London for an IT Europa Executive Roundtable to discuss the evolving landscape of data security, governance, and artificial intelligence (AI) readiness. Hosted in partnership with AvePoint, the event highlighted how rising customer expectations and stricter regulations are reshaping service models in a rapidly changing cloud ecosystem.

Central to the discussions was the growing interest in Microsoft Copilot and other generative AI tools. Delegates noted that clients increasingly perceive AI as an essential differentiator, even though many lack a clear understanding of practical use cases. “AI is an enabler, not a product,” one participant remarked, emphasizing the need for defined baselines to measure productivity gains and justify investments before rushing into deployment.

Compliance emerged as a significant driver of change across the sector. Participants pointed to frameworks such as Cyber Essentials Plus, ISO 27001, and the upcoming EU NIS2 directive as catalysts for introducing recurring services that blend security, governance, and reporting. Many providers are adopting subscription models like “secure-score-as-a-service,” which assists clients in maintaining their Microsoft Secure Score thresholds on a monthly basis. Some attendees reported a marked decrease in support tickets after implementing a minimum security stack for all clients; those unwilling to comply were asked to sign liability waivers, a step few chose to take.

The roundtable also underscored ongoing challenges organizations face in understanding the location and classification of their data. MSPs are increasingly conducting structured workshops to map out systems across platforms like Microsoft 365, financial applications, and customer relationship management (CRM) tools. This effort helps clients visualize data ownership, access, and gaps in backup protocols. Chris Shaw, Channel Director at AvePoint, cautioned that unstructured and unclassified data represent a significant risk, particularly when businesses mistakenly believe that cloud platforms inherently offer long-term protection. He noted that retention gaps and fragmented data sources present a substantial opportunity for MSPs to provide educational and governance-led services.

Attendees advocated for enhanced vendor collaboration, co-selling opportunities, and outcome-based commercial models rather than traditional transactional licensing arrangements. Shaw indicated that AvePoint’s partner strategy is focused on empowering MSPs to expand their offerings beyond mere backup solutions, encompassing governance, automation, reporting, and comprehensive data protection. With over 30 products in its portfolio, AvePoint is investing in platform industrialization to assist partners in “doing more with fewer vendors” while effectively scaling recurring revenue services.

“We’ve built our business around partners,” Shaw explained. “Our role is to help MSPs turn data protection into a scalable service opportunity—combining Microsoft 365 expertise with automation, reporting, and compliance insight. We win when our partners grow.”

The consensus at the roundtable was clear: AI adoption and data governance are increasingly intertwined. As one delegate aptly put it, “AI might be the buzzword, but data governance is the backbone. If you can secure, classify, and report on it, the growth will follow.” This sentiment underscores a pivotal shift in the industry, signifying that as the cloud landscape evolves, the ability to manage data effectively could become the cornerstone of competitive advantage for MSPs moving forward.

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The AiPressa Staff team brings you comprehensive coverage of the artificial intelligence industry, including breaking news, research developments, business trends, and policy updates. Our mission is to keep you informed about the rapidly evolving world of AI technology.

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