Managed service providers are in high demand. Organizations look to better manage their IT infrastructure, so they turn to MSPs. It makes sense. Have experts help lower the costs and downtime with cybersecurity, IT support and network management within the organization.
MSPs are taking advantage of the high demand for the services they offer. More demand means more revenue.
“Ninety-five percent of MSPs believe that it is a great time to be a MSP, and other fields cannot say that,” said Amelia Paro, channel chief, Kaseya. Paro spoke during a keynote presentation at ITEXPO in Ft. Lauderdale, Florida. Kaseya is a platinum sponsor at the 2023 MSP Expo.
During her presentation, Paro showed that nearly 36% of MSPs had revenues between $1 million and $5 million. So, she said it again, “It is a great time to be an MSP.”
It’s one thing to say that it is a great time for MSPs. But, as with everything else, that is easier said than done. Competition is high, so MSPs need to figure out how to get more of that market share, drive more efficiencies and make their tech more efficient overall.
For MSPs, there are revenue streams out there. With hybrid work models, 96% of clients are concerned about the security of their off-site work. Today’s network edge being everywhere, bandwidth demands growing 50% per year and more than 14 billion devices connected to the internet – these are revenue opportunities for MSPs.
This was not even factoring the cybersecurity concerns, which Paro went into a little bit. Scams, phishing and malware are threats that will always be a problem because of humans.
“Email security, MFA, two-factor authentication are offerings that should be in an MSP stack because of the end users,” said Paro. “This will generate more revenue. And MSPs that offer compliance, which will continue to grow, will make huge profits.”
Paro then discussed how MSPs can get their share of the market.
She suggested that MSPs focus on demonstrating their value to rise above their competition. MSPs also need to offer a full suite of offerings to meet market demands, such as networking, security and compliance and BCDR.
Lastly, MSPs need to scale effectively to meet customer and service demands and invest in tools to increase technician efficiency, reduce hard costs and boost profitability
“Be the MSP that reaches that $10 million to $20 million revenue range and beyond,” said Paro. “I want to come back to the stage next year and see the number in that range increase. And I think I will see it. I will see an increase of MSPs that expect to see revenue growth.”
Edited by Greg Tavarez