Why MSPs Should Bet on Microsoft 365 Workspace Management for AI Readiness

As businesses grapple with continuous innovation, organizations across all sizes and industries engaged in extensive AI experimentation in the last two years will shift to reinvention in 2025. AI readiness involves an organization preparing its data foundation and processes to ensure compliance while it leverages AI technologies. This is crucial because 43% of cyberattacks target small and medium-sized businesses (SMBs), and they cannot embrace AI with a weak digital infrastructure. Effective workspace management helps reduce compliance risks through the capability to set rules across the workspace, preventing sensitive information from falling into the wrong hands.
With 75% of SMBs experimenting with AI, managed service providers (MSPs) have a significant opportunity to tap into workspace management solutions to help enterprises on their journey toward responsible AI. This framework ensures that AI-enabled business processes and workflows are implemented responsibly and transparently, aligning with regulatory requirements. The ability of business functions, teams, and stakeholders to leverage data seamlessly to make better-informed decisions will draw the line between successful and failed proofs of concept or investments.
To develop this capability, MSPs must have effective tools to properly assist enterprises in their data governance strategy toward AI readiness. These tools will be driven by introducing AI agents, data infrastructure transformations, and enhanced focus on resilience through cyber-recovery.
The Demand for Workspace Management in AI Readiness
As organizations discuss responsible AI more, MSPs are better positioned to scale their services through AI readiness services. Bringing data together eliminates siloed information and allows organizations to analyze weaknesses to be improved and identify wasted resources. Microsoft 365 workspace management centralizes all asset and site information to address fragmentation across the workspace by providing information on sensitivity and retention labels, helping manage content across Microsoft 365, and easing the burden of manual monitoring for compliance purposes.
Safeguarding data has never been more important. With cyberattacks becoming more sophisticated, IDC suggests integrating AI into security systems to protect sensitive information and maintain customer trust. AI can enhance security measures by detecting anomalies and mitigating risks in real time, making it an essential part of any security strategy.
For businesses, using AI means allowing access to Microsoft 365 and all the information stored within applications. With Microsoft removing the minimum seats for Copilot, organizations across all sizes can utilize Microsoft 365 Copilot for their operations with policies, regulations, ethical principles, and guidelines governing AI systems’ development, deployment, and use.

Building a Workspace Management Practice for MSPs
By offering robust Microsoft 365 workspace management services, MSPs can position themselves as essential partners in the AI transformation journey, resulting in a profitable opportunity for MSPs. Simply put, organizations will expect their vendors to step up and manage intelligent digital workspace ecosystems so that the IT staff can focus on other high-value tasks such as strategic planning and cybersecurity enhancements.
MSPs can help organizations develop efficient workspace management tools that ensure data is handled according to compliance requirements. This allows businesses to govern their data more efficiently and reduce the risk of non-compliance. Here are some steps to build your workspace management practice:
1. Assess Client Needs
The first step in building a workspace management practice is to assess the specific needs of each client. This involves understanding their current workspace setup, identifying gaps in their management, and determining their readiness for AI integration. This is crucial, as over 87% of SMBs collect or process sensitive customer data that could be compromised, signifying how many SMBs lack proper workspace management strategies in place to ensure compliance and avoid compromising data.
2. Develop a Comprehensive Strategy
Once the needs are assessed, MSPs should develop a comprehensive strategy that includes policies, procedures, and tools for effective workspace management. This strategy should align with the client's business goals and regulatory requirements.
3. Implement Workspace Management Tools
MSPs should implement robust workspace management tools that can automate data classification, track data lineage, and enforce compliance policies. These tools should be integrated with Microsoft 365 to ensure seamless management of the client’s workspace. Organizations can also monitor activities related to labeled content, including a historical view of up to 30 days’ worth of data.

4. Train and Support
Providing training and ongoing support is crucial for the success of the workspace management practice. MSPs should offer training sessions to help clients understand how to use the tools effectively and provide continuous support to address any issues that arise.
5. Monitor and Optimize
MSPs should continuously monitor the client’s workspace to ensure that the management tools are functioning as intended and that compliance is maintained. Regular audits and optimizations should be conducted to improve the efficiency and effectiveness of the workspace management practice.
Elevating Microsoft 365 Workspace Management
MSPs must be equipped with complete information, resources, and best practices to turn workspace management services into revenue-generating offerings. This will help ensure that organizations have the right protection for their planned AI implementation. Tapping vendors for a comprehensive suite of workspace management solutions and expert knowledge support can empower MSPs to become competitive in the workspace management vertical.
For example, AvePoint’s Control Suite helps define what “overexposed” means in the organization, navigate the location of these files across Microsoft 365 tenants, and filter these files based on exposure levels. This helps businesses prioritize action on overexposed files, ensuring the responsible use of AI by preventing unauthorized users from breaching sensitive data.
On top of reliable solutions, MSPs can also gain a knowledge base and assistance from independent software vendors (ISVs) whenever needed, allowing them to become experts in workspace management. MSPs should invest in continuous learning and training programs, which entails attending webinars, workshops, and conferences on Microsoft 365, AI readiness, and workspace management. Certification programs from solutions providers like ISVs can help MSPs build their expertise in specific technologies. These programs ensure that MSPs are well-equipped to implement and manage advanced workspace management solutions.
AvePoint’s Campaign in a Box kit for Microsoft 365 Copilot offers a step-by-step framework, allowing MSPs to develop their knowledge of workspace management solutions, build best practices, and implement a go-to-market strategy for Microsoft 365 workspace management services. AvePoint is committed to helping partners thrive from the comprehensive directory that provides a centralized hub for potential clients to find partners to a robust solution suite, which allows MSPs to build a business around securely managing their customers’ collaboration ecosystems.
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Amabel Palencia is a Content Marketing Specialist at AvePoint, covering channel marketing and partner programs, information lifecycle management, artificial intelligence (AI) readiness, data management, and cloud storage optimization. A journalism graduate, she has 15+ years of experience in project management, customer engagement, communications, and content marketing strategy for B2B campaigns. She creates content that helps MSPs and other partners navigate the rapidly changing digital landscape.