The latest report from Kaseya explores the landscape of Managed Service Providers (MSPs) and the challenges and opportunities they face. Amid increased competition, MSPs have become crucial for small and midsize businesses.
The report highlights significant revenue growth in the industry, the importance of customer experience, and rising trends such as vendor consolidation, expanding service portfolios, cloud migration, and addressing cybersecurity concerns. It provides an in-depth forecast for 2024, outlining key priorities for IT professionals and the expected evolution of the MSP market.
- The MSP industry has experienced significant growth in 2023, with 68% of North American MSPs and 64% of European MSPs seeing revenue increases.
- Competition is a major challenge for MSPs, with 35% globally citing it as their biggest challenge.
- IT professionals should focus on embracing vendor consolidation, expanding service portfolios, embracing cloud migration, and addressing cybersecurity concerns in the coming year.
Exploring the Power of Managed Service Providers
IT professionals working with Managed Service Providers (MSPs) are shaping the future of IT services. This is according to the latest edition of the Datto Global State of the MSP: Trends and Forecasts for 2024 report, released by Kaseya, a global leader in unified IT management and security software.
The report provides a panoramic view of the current MSP market, showing how crucial these professionals are to the success of small to midsize businesses (SMBs) and mid-market enterprises (MMEs). The survey, which included 1,575 MSPs worldwide, shines a light on the challenges and opportunities they face, as well as the evolving landscape and expectations for the coming year.
MSPs: The Unsung Heroes of Tech
Holly Pateman, SVP of Product Marketing at Kaseya, lauded the work of MSPs. She said,
“While MSPs have long been the unsung heroes of tech, this year’s survey results clearly speak to a growing understanding of the critical role technology plays in a sustainable business.”
Indeed, with increasing competition and an emphasis on the need for a superior customer experience, MSPs have a clear view into what makes their customers successful, and by extension, how to keep the economy running.
Growth, Competition, and Innovation
The MSP industry has been on an upward trajectory, despite a challenging economic climate. A significant number of MSPs reported a rise in revenue, with 68% in North America and 64% in Europe noting an increase. However, competition is fierce, with 35% of MSPs citing it as their biggest challenge. Nevertheless, this competition is driving innovation, with 91% of MSPs prioritising customer experience to meet their clients’ needs.
Looking Ahead
As the IT needs of SMBs and MMEs continue to change, the report highlighted several priorities for IT professionals in 2024. These include embracing vendor consolidation, expanding service portfolios, supporting cloud migration, and addressing cybersecurity concerns.
The Future of IT Services
As we approach 2024, the insights, challenges, and successes of MSPs are expected to shape the future of IT services. The continual growth and potential of this industry are evident, making the work of MSPs increasingly crucial.
Final Thoughts
The latest Datto report underscores the growing significance of MSPs in the IT landscape. As the industry grapples with increased competition, the focus on customer experience and innovation is paramount. Moreover, the report paints a picture of an industry poised for growth, driven by the rising importance of technology in sustaining businesses. As we look to 2024, the influence of MSPs is set to continue, shaping the future of IT services in an increasingly digital world.
FAQ
Q: What is the focus of the Datto Global State of the MSP report?
A: The report focuses on the challenges and opportunities for IT professionals in the managed service provider (MSP) industry.
Q: How many MSPs were surveyed for the report?
A: The report surveyed 1,575 MSPs worldwide.
Q: What does the report reveal about the MSP market?
A: The report shows that the MSP market has experienced significant growth, with increased revenue and competition.
Q: What percentage of MSPs in North America experienced a revenue increase?
A: 68% of MSPs in North America experienced a revenue increase.
Q: What is the biggest challenge cited by MSPs globally?
A: The biggest challenge cited by MSPs globally is competition, with 35% of respondents mentioning it.
Q: What is the top priority for MSPs regarding customer experience?
A: 91% of MSPs regard customer experience as a high or top priority.
Q: What are the main priorities for IT professionals in the coming year?
A: The main priorities include embracing vendor consolidation, expanding the service portfolio, embracing cloud migration, and addressing cybersecurity concerns.
Q: How many respondents prefer to use fewer vendors to meet their technology needs?
A: 74% of respondents prefer to use fewer vendors, up from 64% in the previous year.
Q: What are the top services that respondents anticipate adding to their portfolios?
A: The top services include collaboration software, business intelligence or analytics software, and incident response and forensics.
Q: What percentage of clients are shifting their workloads to the cloud?
A: Approximately half of the respondents report that 50% or more of their clients are shifting their workloads to the cloud.
Q: What cybersecurity challenge do MSPs face?
A: 28% of respondents cited their customers’ lack of concern about cyber risks as a major cybersecurity challenge.
