MSPs Anticipate Continued Revenue Growth

MSPs revenue

1 - MSPs Anticipate Continued Revenue GrowthMSPs Anticipate Continued Revenue Growth

A new report from Kaseya finds savvy MSPs are generating more revenue by increasing both the number of services they offer and their prices for those services.

2 - Revenue Generated by Managed ServicesRevenue Generated by Managed Services

• Less than 25% of MSPs: 40%

• 25% to 50% of MSPs: 41%

• 51% to 100% of MSPs: 20%

3 - MSP Revenues GrowingMSP Revenues Growing

26% of respondents said their average annual monthly recurring revenue (MRR) grew over the last three years by more than 15%. 18% reported an average three-year MRR between 10% and 15%.

4 - Types of ClientsTypes of Clients

For 55% of lower-growth MSPs, the largest percentage of their client base consists of companies with 25 or fewer employees. That compares to only 40% of high-growth MSPs, which are almost 60% more likely to have companies with more than 100 employees as the largest percentage of their client base.

5 - Pricing ModelsPricing Models

64% of MSPs rely on value-based pricing, versus 24% cost-based. Another 12% said they rely on a price-match model to remain competitive. Almost half charge based on a mix of per-device and per-user. The rest focus on either device (34%) or users (18%).

6 - Number of Tiers of ServiceNumber of Tiers of Service

33% offer three or more tiers of service, 25% offer two tiers and 12% offer one tier. Another 30% make their services available à la carte.

7 - Average Size of Monthly ContractAverage Size of Monthly Contract

• Up to $1,000: 23%

• $1,001 to $2,500: 37%

• $2,501 to $5,000: 22%

8 - Price Increases by ServicePrice Increases by Service

High-growth MSPs reported more price increases by service offering in the past 12 months, and they anticipate more price growth by service level in 2017 than their lower-growth peers.

9 - Past and Future Price IncreasesPast and Future Price Increases

High-growth MSPs reported increased pricing in the past 12 months—almost 50%. They anticipate pricing increases for 20 listed services in 2017.

10 - Network Operations Center ServicesNetwork Operations Center Services

47% of high-growth MSPs offer 24×7 network operations center services. High-growth MSPs are 125% more likely to outsource their NOC services.

11 - Security IssuesSecurity Issues

30% of the MSPs identified security as their top concern, but three of the concerns listed are cloud-related. When these are added together, cloud concerns virtually tie with security concerns: 30.79% versus 30.22%, respectively.

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