MSPs MARKET REPORT
“Customers expect a relationship which means that in addition to operations, the commercial side of the
business including the sales, service management and support teams must have the tools to enable them to
understand their customers and foster an ongoing relationship.” Martin Saunders, Product Director at Highlight
Martin Saunders, Product Director at Highlight
network issues and maintain
connectivity for customers.
Combining the cloud with
advanced technology, automatic
deployment of network
services and data distribution
across gateways, switches, and
access points can be achieved
- reducing the complexities
of traditional siloed networks
and enabling zero-touch
provisioning. Not only does
this improve reliability, but
a ord peace of mind that
any potential issues can be
identi ed and resolved quickly
and e ectively from anywhere.”
Jim Lippie, Kaseya senior vice
president, partner development,
Kaseya added, “User demands
have consistently driven
change in the service provider
marketplace. As MSPs continue
to shift from break- x to
managed services as a primary
source of revenue, this is truer
than ever. It is especially evident
in the growing divergence
between MSPs experiencing
high growth, and their lowergrowth
counterparts. To deliver
high-value, comprehensive
services, an MSP must
continually expand and evolve
its o erings to stay ahead of
market trends and demands,
MSP Concerns – Datto’s fourth annual Global State of the
MSP Report (2020)
In addition to the unknown economic landscape, client
cybersecurity, work/life balance, sales and marketing and hiring
are the top issues keeping MSPs up at night. Cybersecurity
continues to be a pain point, with 34% of MSPs citing this as a
top concern (compared to 30% in 2019). However, rising concerns
around cybersecurity could indicate a higher demand for security
services from clients, as SMBs increase their awareness about
IT security. This paints an optimistic picture for MSPs who offer
effective cybersecurity services, as it is now a requirement for
SMBs.
while at the same time nding
ways to work more e ciently
through better resource
allocation and technology
usage.
Saunders commented, I
expect to see a huge growth
in smaller local providers with
engineers on the ground. ey
are going to be an important
part of the market.
e commercial and service
management aspect of an
MSP is going to grow in
signi cance as they frame their
businesses as a service, rather
than a collection of technical
elements.”
Saunders continued, “In the
past, MSPs have traditionally
put all their focus on the
operations team, ensuring
the technology is delivered
e ectively to customers. But
when you move to an ongoing
revenue relationship, customers
expect you to be on top of
their issues and problems,
to know what is happening
with the services they are
receiving. Customers expect a
relationship which means that
in addition to operations, the
commercial side of the business
including the sales, service
management and support
teams must have the tools to
enable them to understand
their customers and foster an
ongoing relationship.
is requires a single,
service-based view that can
be used across the whole
provider-reseller-customer value
chain. It will help to increase
sales of margin-rich services,
maximise the productivity of
Sales, Operations and Service
Management as well as improve
relationships with customers.
But if a provider thinks they
can sell a service and then
return to the customer three
years down the line, they will
face considerable churn.”
Jason Howells added, “ e
challenges that COVID-19
has presented have led many
businesses to scrutinise their
out of date business continuity
plans, many of which were
crafted long before any number
of Software-as-a-Service (Saas)
platforms that make it simpler
to collaborate were launched.
Many will seek the help of
MSPs moving forward, as they
invest the time to re-engineer
new future-proof strategies.
e business continuity plans
that MSPs are being asked to
help draw up now may very
well become a blueprint for the
future post-COVID.”
ED SAYS…
There is much to be excited about if you are
an MSP right now. The amount of change
following the COVID pandemic will offer
opportunities, for those businesses that
survive, for years to come.
What does 2020 look like for MSPs?
Datto’s fourth annual Global State of the MSP Report
Growth Drivers
• As SMBs increasingly entrust their IT to MSPs, individual MSPs
are benefi ting from that growth. Over the past three years,
22% of MSPs reported that their total revenue per year grew
by up to 5%, and 24% of MSPs reported growth of up to 10%.
• For every 10% of total revenue derived from managed services,
MSPs grow their businesses by between 0.25% to 0.75% on
an annual basis. Further, the survey suggests that larger MSPs
and also upstart MSPs located in North America are growing at
the fastest rate.
• Though many cited economic uncertainty as the main driver of
potential fi scal challenges, an increase in cloud migrations may
offset losses. The survey found that 57% of MSPs expect the
use of on-premises servers for critical applications to decline
over the next three years.
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