8 Top Managed Service Provider Trends for 2024

See our slideshow above for more information about the eight predicted managed services trends, or download our free resource on 2024 MSP predictions.

Here we explore a few of the following managed service provider trends:

Given the record flow of IT and connectivity products and services through channel partners of all kinds, today’s customers and strategic vendors are more dependent than ever on the channel. This puts the channel, especially managed service providers, in the spotlight for their strategies, growth rates and overall direction.

These managed services leaders find themselves in perhaps the most influential role in the industry. They work with customers on what solutions will help secure and scale their businesses, thereby picking the technology platforms that will get the most attention and growth.

Year-over-Year Growth of the Channel

One thing is clear: The channel is vibrant and growing globally. Canalys estimates there are more than 10 million channel, partner and alliance professionals that make up our industry, with 15,000 partner professionals using ecosystem in their title on LinkedIn. (Canalys is a Channel Futures sister company.)

If everyone is watching the channel closely, then the 35,000 vendor channel leaders who oversee their companies' indirect sales strategies and partner programs have become essential to their organizations' strategic direction and growth. The IT managed services industry, according to Canalys, grew 12%, to $419 billion, in 2022, with 335,000 global partners.

Challenges for the MSP Community in 2024

Channel partner opinions vary widely on where the market is heading, notably the biggest opportunities and challenges. Mitch Morgan, CEO of New Charter Technologies, is optimistic about the coming year, expecting security services to represent the highest growth rates for partners with cloud migrations, digital transformation, AI, workflow and DevOps taking center stage in 2024.

We resisted the temptation to make a single prediction on AI, as it's impacting just about every part of the technology business. As one partner said, “AI is a game changer. It’s like having a super-smart assistant that can do a lot of the heavy lifting. For MSPs, this means they can automate tasks and make better decisions; plus, with a shortage of cybersecurity experts, AI can step in to help spot and fix security issues.”

To download a condensed version of the 2024 MSP predictions, click here.