MSPs Anticipate Continued Revenue Growth

By Michael Vizard

When it comes to being a managed service provider, it would appear the rich are more likely to get richer. A new survey of 900 managed service providers (MSPs) conducted by Kaseya, provider of an IT service delivery management platform, finds the percentage of revenue being generated by managed services continues to increase. Very few of the solution providers who took part in the survey are wholly dependent on managed services revenue, but revenue from managed services as a percentage of their overall revenue continues to climb, the study shows. In addition, the more services that managed services solution providers offer, the healthier their business appears to be: Kaseya said MSPs with growth rates of more than 10 percent typically offer a much broader range of services than their counterparts. What’s more, MSPs that concentrate their efforts on the midmarket appear to be significantly better off than those focused on small-business customers. These findings suggest that MSPs that focus on value achieve higher revenues by increasing prices for their services, rather than focusing on lowering prices at the expense of their profits.

This article was originally published on 2017-01-30