MSPs on Path to Delivering $1 Trillion in Services

Managed Service Providers (MSPs) are quickly gaining shares of SMB and large enterprise IT budgets. A recent study conducted by AMI-Partners showed that MSPs are expanding tech and business solution offerings. The study was conducted with 950 MSPs throughout America, Europe, and Asia Pacific, and detailed the transformation of MSPs through enhanced management.

The common theme is that businesses are seeing Increased value from a broadening spectrum of services offered by MSPs, who are partnering with an increasing number of hardware, software, and services vendors.  This expansion of services is leading to business growth.

In fact, MSPs’ complex business model is entirely reliant upon many IT solutions, platforms, service delivery, and management tools from a host of partners. The average MSP uses 11 different tools to monitor and deliver managed services, including technology and services from more than 15 separate vendors.  The large number of vendor relationships helps not only broaden their service capabilities, but allows MSPs to tailor solutions for each client.

It is estimated that, by 2021, MSPs will deliver 25 percent of the $4 trillion SMBs and large enterprises spend on global IT products and services.

“Those MSPs winning and gaining share are more in tune with their customers’ business challenges, especially vertical industry-specific issues. This is paramount, for highly regulated industries, such as Healthcare and Finance, where customers demand customized security, disaster recovery and compliance controls,” shared Andy Bose, CEO AMI-Partners.

Because they often deal with the needs of compliance-sensitive clients, MSPs have to be extremely selective as to which vendors they partner with, which makes it equally important for tech providers to ensure their services and products are compliant.

And, with any growing market, the study also found that small and mid-sized VARs are also looking to move to the MSP model, looking to build their revenue streams by becoming more active with the customers with whom they have already built trusted relationships. 

Many of these services – including managed security opportunities – will be featured at MSP Expo in Ft. Lauderdale, February 14-16, 2018, within a conference program that delves into the vast opportunities for MSPs.  As more and more businesses seek to work with MSPs instead of running their own in-house IT shops, differentiation will be a key to growth.  MSP Expo will help providers understand where their opportunities lie.