FUTURE TECHNOLOGY
Increased competition driving up MSP services standards
Overall , the industry is experiencing more growth potential than ever before , with many MSPs having seen their revenues rise over the past year . According to Holly Pateman at Kaseya , most of the MSPs ’ annual revenue increased by more than 10 % according to a survey .
Holly Pateman , SVP Product Marketing , Kaseya
Based on an independent survey of 1,575 MSPs worldwide , Kaseya ’ s third annual Datto Global State of the MSP Report , reveals the key challenges and predictions for the year ahead . It provides an in-depth look at the current state of the market , demonstrating the critical role MSPs have in the overall success of small and mid-size businesses , as well as how the MSP landscape has evolved and what the industry can expect in the coming year .
The survey results highlight several important findings . For the third year in a row , the survey emphasizes the role competition plays for MSPs , and it clearly shows that competition is stiff . More than a third , 35 % of MSPs globally cite competition as their biggest challenge , up from 29 % last year .
The flipside of this heightened competition is that it is prompting MSPs to prioritise the customer experience even more . As the industry witnesses an influx of new players and opportunities , MSPs are harnessing this dynamism as a catalyst to drive innovation and growth at an unprecedented pace .
Recognising that they have to offer stand-out solutions to best meet their clients ’ needs , 91 % regard customer experience as a high or top priority . Delivering a memorable and positive customer experience now stands shoulderto-shoulder with revenue growth as the top strategic goal .
Vendor consolidation
MSPs are increasingly looking to consolidate their technology vendor relationships , especially across Europe and Asia Pacific . This was a resounding theme that echoed throughout the survey . Approximately 74 % of respondents said they prefer to use fewer vendors to meet their technology needs . This strategic move to streamline operations is not just about simplification . Rather , it is a step towards more efficiency , cost effectiveness and the prevention of vendor fatigue .
Within the dynamic IT and MSP landscape , there is also an exciting segment to explore : the growing realm of co-managed relationships . In this model , internal IT teams collaborate closely with MSPs to divide and conquer their responsibilities based on technology , skills or expertise .
This expansion allows MSPs to enter
larger organisations ; for businesses , it gives them access to budget-friendly managed IT services . This trend not only presents new opportunities for MSPs , but also helps shape the future of IT services , embracing innovation and adaptability .
MSP outlook
Overall , the industry is experiencing more growth potential than ever before . There is an encouraging narrative of increasing revenue , with many MSPs having seen their revenues rise over the past year . Globally , most of the MSPs ’ annual revenue increased by more than 10 % year over year , according to the survey . In Europe , nearly two-thirds , 64 % of MSPs experienced year-over-year revenue growth , and among them , 37 % of those experienced an increase of more than 10 %.
This trend is expected to continue , with 78 % of European MSPs anticipating further
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