Overcoming Cloud Complexity in Mid Market Operations - with Dirk Michiels of Savaco

Michiels identifies the persistent misalignment between IT and business in mid-market organizations, where legacy constraints clash with demands for rapid deployment and high service reliability. Traditional ITSM tools and manual change approval processes are too slow and rigid, while organizations must balance modernization with cost control to avoid ROI erosion.

• •Mid-market faces same enterprise demands (complex environments, cybersecurity, digital experiences) but with fewer resources and specialized talent
• •Legacy systems create technical debt that makes traditional ITSM organizations too slow for modern business unit requirements
• •Manual change approval processes are not fit for purpose in today's rapid deployment environment
• •Balancing modernization investments with cost control is critical to prevent ROI erosion from overbuying or misaligned ITSM services

Beyond business-IT alignment, organizations face technology alignment challenges including security threats, complexity of managing hybrid/multi-cloud environments, fragmented tools, and data silos. Poor integration between ITSM tools and other systems leads to operational inefficiencies, inconsistent reporting, and poor visibility across service operations.

• •Security threats are actively impacting operational and IT organizations in real-time
• •Managing on-premise, hybrid, and multi-cloud environments creates significant complexity
• •Fragmented tools and data silos result in inconsistent reporting and poor visibility across service operations
• •Lack of integration between ITSM tools and other systems creates operational inefficiencies that automation and AI capabilities can address

Organizations face both a shortage of technical skills (AI/ML, cybersecurity, cloud infrastructure, data analytics) and service management skills (ITIL processes, communication, proper workflows). Savaco addresses this by building their MSP business on the Xurrent platform, which integrates with Microsoft, Logic Monitor, and Palo Alto Networks, earning them MSP of the Year recognition.

• •Dual shortage exists: technical platform certifications AND service management process knowledge (ITIL, communication skills)
• •CIO reports confirm knowledge gaps in AI/machine learning, cybersecurity, cloud infrastructure, and data analytics specifically for ITSM practices
• •Integrated platforms like Xurrent reduce the burden of requiring deep ITIL process expertise from all team members
• •Savaco's integrated approach with Xurrent and major technology partners (Microsoft, Logic Monitor, Palo Alto) led to MSP of the Year recognition

Organizations can no longer afford one to two-year implementation cycles. AI is dramatically compressing deployment timelines, with ITSM environments that previously took six months now being implemented in weeks while being tailored to customer needs. This addresses the pressure for faster time-to-value in modern IT operations.

• •Organizations cannot afford 1-2 year implementation cycles anymore - speed to value is critical
• •AI is enabling ITSM implementations to compress from 6 months to weeks
• •Faster deployment doesn't sacrifice customization - solutions can still be tailored to customer needs
• •Breaking the 'doom loop' of constant IT emergencies requires addressing core infrastructure issues with streamlined, AI-enabled approaches

Michiels uses a compelling analogy of Roman roads versus modern highways to illustrate that AI isn't about incremental improvement (making horses run faster) but fundamental transformation (introducing cars). This requires reimagining entire processes, not just applying new technology to old workflows - representing a pivotal change beyond the digital transformation of the past decade.

• •AI represents a fundamental shift comparable to moving from horses to cars, not just making horses run faster
• •The Roman roads analogy: 450 hours walking vs. 300 hours by horse vs. 15 hours by car - orders of magnitude improvement
• •Organizations must reimagine entire processes and operations, not just apply AI to existing workflows
• •This is more profound than the digital transformation discussed for the past decade - it's a pivotal chain reaction of change
• •AI's difficulty and power both stem from requiring this complete rethinking of how work gets done

To prevent shadow AI (employees using unauthorized tools like ChatGPT), organizations must define formal AI initiatives aligned with business goals and process improvements. Without this alignment, AI becomes a technology experiment rather than a business value driver, and many organizations have struggled for years to bring AI/ML tools to production impact.

• •Shadow AI emerges when organizations lack defined AI initiatives - employees default to consumer tools they use at home
• •AI initiatives must align transformation with process improvements and business goals to deliver value
• •Without proper initiative definition, AI remains a technology experiment rather than business value driver
• •Many organizations have struggled for years to bring AI and machine learning tools to production where they create real impact
• •Success requires prioritizing culture and process changes, securing executive buy-in, and implementing enterprise-wide rather than departmental approaches

AI-enabled Enterprise Service Management (ESM) extends service management principles beyond IT to departments like HR, finance, and facilities. Platforms like Xurrent have AI built-in for both ITSM and ESM, enabling consistent workflows, automation, and user experiences across the enterprise. This transforms service delivery from reactive to proactive, intelligence-driven operations and represents low-hanging fruit for demonstrable value.

• •Enterprise Service Management applies IT service management principles to non-IT departments (HR, finance, facilities)
• •Platforms like Xurrent have AI built-in for both ITSM and ESM, not requiring organizations to build from scratch
• •AI enables consistent workflows, automation, and user experiences across all departments, not just IT
• •Transforms service delivery from reactive to proactive, intelligence-driven operations enterprise-wide
• •ESM represents 'low-hanging fruit' for AI value - can deliver results without massive data infrastructure investment upfront