The Critical Role of MSPs in Strengthening Data Governance

We all know that our world runs on data. From the TikTok videos we’re shown to the marketing metrics we track, data runs our day-to-day lives in every aspect. For businesses, data helps drive decision-making, fuels innovation and provides a competitive edge. Now, as businesses ramp up utilization of artificial intelligence (AI) and generative AI (gen AI), which rely heavily on accurate and up-to-date information, data is even more crucial for businesses. 

Data is undoubtedly invaluable, but it comes with big risks as threat actors continuously seek to exploit weaknesses in data infrastructure. In fact, IBM revealed that the global cost of data breaches in 2024 increased by 10% to $4.88 million.

The bottom line is that businesses need data governance to help protect their data and enhance operational efficiency; it provides a framework for improved workspace utilization while ensuring the implementation of proper controls.

In the years to come, the importance of data governance will only increase, expected to grow from $3.96 billion in 2024 into a $12.92 billion market in 2031 — largely driven by the need to utilize and protect business data. Managed service providers (MSPs) are uniquely positioned to tap into this opportunity to create new services offerings and recurring revenue streams. According to Canalys research, managed services through the channel in the Americas will grow at least 12% year-on-year, and that’s due in part to emerging data governance and management needs. Here’s how MSPs can help businesses navigate this complex landscape through data governance solutions that can aid in protecting data and enhancing operational efficiency, and in turn can drive revenue growth.

The Critical Need for Data Governance

Why is data governance so important? It’s a multifaceted discipline that ensures data meets regulatory compliance, mitigates risks and optimizes operational efficiency. Through proper data governance, businesses can prevent unauthorized access to sensitive information, which can lead to data breaches and accidental deletion, by setting the necessary controls across the business’ digital workspace.

These data governance processes can also be automated to reduce the manual workload for MSPs and businesses significantly. By implementing automated solutions, MSPs can ensure consistent policy enforcement and minimize human error, allowing MSPs and the businesses they serve to spend more time on other pressing initiatives.

Businesses must also navigate a complex web of regulations, making compliance another critical aspect of data governance — and another opportunity for MSPs to create a compliance-as-a-service offering. According to Gartner, compliance audits are the top governance concern (52%) that business leaders face. To ensure compliance, MSPs can provide services to implement effective data management processes for businesses and assist with efficient and effective data organization, maintenance and utilization.

For MSPs, expanding into data governance means an opportunity to scale their offerings to provide more value to businesses, which can translate to recurring revenues from existing clients and tapping new ones.

Comprehensive Data Governance: 3 Key Services MSPs Should Offer

To effectively address the data governance needs of businesses, MSPs can offer a comprehensive suite of services tailored to different aspects of data management and protection.

Driving Business Growth: Strategies for Marketing Data Governance Services

Partners can be sold on the data governance opportunity, but selling it to clients is a whole other conversation. It’s all about positioning the offering as an essential part of a business’ security posture. MSPs can position data-governance services as value-added offerings. By bundling these services with other IT solutions, like backup and migration, MSPs can provide a comprehensive package that addresses multiple business needs. This approach enhances the perceived value of the services and offers cost savings compared to purchasing each service individually.

Building strategic partnerships with vendors is another effective strategy. Vendors are motivated to help MSPs sell their solutions — they only succeed when their partners succeed. By collaborating with leading technology providers, MSPs can offer cutting-edge solutions that enhance their service offerings. These partnerships can also provide additional resources, expertise and support, further strengthening the MSP’s value proposition.

The Holy Grail, of course, is that MSPs can tap into opportunities for recurring clients by offering data governance services on a subscription basis. This model provides a steady revenue stream while ensuring that clients receive ongoing support and updates. By demonstrating the long-term benefits of data governance, MSPs can build lasting relationships with their clients and drive business growth.

As data continues to be a critical asset for businesses across industries, the role of MSPs in providing comprehensive data-governance solutions becomes increasingly vital. MSPs can be indispensable partners in their clients’ data management strategies. This opens new revenue streams for MSPs and contributes to a more secure and efficient business landscape in the age of AI and digital transformation.