In this episode, Pete Roythorne sits down with Charles Weaver, CEO and co-founder MSPAlliance, to delve into the growing demand for managed service providers (MSPs) to handle compliance for their clients. Weaver emphasizes the shift in how compliance is viewed—from a bureaucratic necessity to a significant business opportunity.

This episode is crucial for MSPs looking to understand and capitalize on the growing demand for compliance services. Charles Weaver's insights highlight the evolving landscape of compliance and its implications for MSPs. From exploring new revenue opportunities to understanding global compliance trends, this discussion provides valuable perspectives for MSPs aiming to enhance their service offerings and navigate the complexities of regulatory requirements.

Some of the key themes, this podcast touches on:

1. Evolution of Compliance:

Compliance has historically been seen as bureaucratic and procedural. However, the role of MSPs in compliance is evolving, particularly in sectors like banking and defense. MSPs are now critical in managing compliance efforts, from cyber insurance to software compliance, creating new revenue streams.

2. Cyber Insurance and Revenue Opportunities:

The pandemic accelerated MSPs' involvement in cyber insurance, with many helping clients with insurance renewal forms and charging for these services. This shift has placed MSPs at the center of the compliance discussion, expanding their roles in corporate risk and governance.

3. Global Compliance Trends:

Compliance requirements are becoming standardized across major developed countries, with regulations like GDPR influencing data privacy practices globally. MSPs are crucial for ensuring that mid-market and SMB clients meet these standards, solidifying their role in global IT management.

4. Compliance as a Service:

The concept of "compliance as a service" is gaining traction, though there are concerns about commoditization. Effective compliance requires a symbiotic relationship between MSPs and their clients, where MSPs are integral to the client's compliance strategy.

5. Vertical Specialization:

Some MSPs may choose to specialize in specific industries, leveraging their expertise in industry-specific regulations. However, there is also a push for MSPs to adopt general cyber frameworks to elevate all clients' cybersecurity standards.

6. Managed Services Immunity:

Weaver introduces the concept of "managed services immunity," where MSPs and their clients achieve a high standard of cyber hygiene and operational behavior. This concept aims to provide benefits for adopting good practices, counterbalancing the regulatory burdens.

7. Compliance and Small MSPs:

Compliance strategies should be accessible to MSPs of all sizes, not just larger ones. Smaller MSPs must balance client compliance with the need to protect themselves contractually and through insurance.