EXPERT SPEAK
WILL 2024 BE BOOM TIME FOR MANAGED SERVICE PROVIDERS ?
Small and medium-sized enterprises now consider technology an integral part of their business and want to harness technology to drive productivity and will therefore be looking for MSPs to help them achieve those 2024 goals says Fred Voccola and Greg Jones at Kaseya .
Managed service providers , MSPs who provide IT and security solutions to small and medium-size companies , SMBs around the world are in the early stages of a huge boom cycle . Their SMB customers are increasing their spending and investment in technology at a rate three to four times the rate of GDP expansion , with little plans of slowing down any time soon . This is very similar to what we saw in the enterprise in the mid-90s through 2010 .
At that time enterprise organisations invested hundreds of billions of dollars on technology as they digitally transformed themselves to become technology-first companies . The same investment cycle has now begun to hit the SMB sector , as technology investments represent the best and often only investment option for SMBs to consider in their journeys .
Considering most SMBs have little to no IT and security employees on staff , they turn to MSPs to deliver the missioncritical systems they require to compete . Private equity , and other professional sources of capital are moving into the 100 billion + market of SMB-facing MSPs , as this market explodes .
Left : Fred Voccola , CEO Kaseya and , right , Greg Jones , Vice President Business Development EMEA , Kaseya
With massive recurring revenue streams and growing TAM , as well as low churn , investment in this sector will soon resemble the move of private equity and other professional investment dollars to SaaS companies in the mid-2000s .
MSPs are currently in a good place , and this will likely continue in 2024 . The technology industry often does well in times of economic uncertainty . There is huge potential especially for those MSPs who can pivot and spot opportunities to grow . Adaptability and agility are paramount for success .
Many small and medium-sized enterprises now consider technology an integral part of their business . They know they can harness technology to drive productivity and profitability and they will be looking to MSPs to help them achieve these goals . This is not necessarily about implementing shiny , new tools , but rather about improving business processes , automating and doing more with less .
Security and co-managed services remain growth areas . Against a backdrop of fast evolving cyber threats , MSPs will need to challenge and leverage all their supplier relationships . They will need to work with vendors as strategic partners and invest the time to boost their own as well as their clients ’ cyber resilience .
Staffing will be a pain point in 2024 . It has become harder to retain good technology talent , so it is worth looking beyond the usual talent pools to find those hard-working plate spinners who can make a
MSPs are currently in a good place , and this will likely continue in 2024 .
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