8 Key Takeaways from Datto’s State of the MSP Report

High growth MSPs shared two key attributes and activities: generating a higher portion of revenue from managed services (that is, services that generate a recurring revenue) and setting specific growth goals.

39% of MSPs have been in business for over 16 years. However, there is a solid crop of newcomers, as well. 18% have been in business less than five years. 84% said that now is a good time to be an MSP.

24% of MSPs report their businesses raise between $1M to $2.49M in annual revenue. More than half of MSPs said over 50% of their revenue came from recurring services.

On average, MSPs have 122 clients. However, 69% of MSPs have fewer than 100 clients. 50% of MSPs have an average annual contract of less than $15,000 annually, and 89% said that the majority of their clients are micro or small businesses.

22% of MSPs said that during the past three years their total revenue per year grew by up to 5%, and 24% reported growth of up to 10%. 19% of respondents saw growth of up to 20% per year. 12% remained the same, and only 3% saw declining revenues per year.

Economic uncertainty was troubling for MSPs in the aftermath of COVID-19. Cybersecurity for clients was another top pain point for MSPs, followed by work/life balance.

61% of MSPs consider antivirus the most critical security solution for SMBs, followed by advanced firewalls and RMM.

MSPs believe that COVID-19 will accelerate cloud migration projects for many clients.