Why Becoming a NextGen MSP Takes More than Shiny Solutions

Insights from the MSP 501 survey highlight the stark contrasts between NextGen MSPs and their counterparts, revealing key strategies and approaches that set the top performers apart. For MSPs and IT vendors, the results from Omdia’s Next-Generation Managed Service Providers (MSPs) Survey Insights – 2024 offer valuable instructions on what it takes to thrive in the channel ecosystem. 

Client Acquisition Tactics: Higher Devotion to Webinars, Industry Events

One of the most striking differences between NextGen MSPs and their colleagues is their approach to acquiring new clients. NextGen MSPs leverage a multichannel strategy that includes heavier use of webinars (21 percentage points higher than MSP counterparts), industry events (16 points hither) and targeted emails (15 points). By actively participating in webinars and attending industry events, these top-tier MSPs position themselves as thought leaders and build strong networks with potential clients. 

Vendor Selection: Innovation, Co-Selling Are Higher Priorities 

When it comes to vendor onboarding, NextGen MSPs prioritize innovative solutions (15 points higher) and co-selling/marketing support (five points higher) from vendor programs more than others. They seek out vendors that offer cutting-edge solutions, enabling them to stay ahead of market trends and deliver superior services to their clients. Co-selling and marketing support are also crucial, as these partnerships allow NextGen MSPs to amplify their reach and drive joint success. 

Related:Download 2024's Next Generation MSPs, an MSP 501 List

Growth Drivers: AI, Managed Compliance Are Bigger Focuses 

There are significant differences in growth drivers for NextGen MSPs vs the rest of the field. The survey shows that AI (19 points higher) and managed compliance services (10 points higher) are major areas of focus for these elite performers. AI-powered solutions are transforming the MSP landscape, enabling NextGen providers to automate routine tasks, enhance cybersecurity and deliver more efficient services. Managed compliance, meanwhile, is becoming increasingly important as businesses face growing regulatory pressures. 

Conclusion: Pioneers Don’t Have Time to Be Complacent 

In the ultracompetitive managed services realm, there's no room for mediocrity. It is clear: NextGen MSPs are not just outperforming their peers — they're redefining what it means to succeed in this industry. Their relentless focus on innovation, strategic partnerships and cutting-edge technologies like AI isn't just setting them apart — it's leaving their peers in the dust. 

To maintain their lead, NextGen MSPs can’t rest on their laurels. The path to continued dominance requires bold, decisive actions that forge deeper, more strategic partnerships. To do so: 

Methodology 

In 2024, Channel Futures revamped its next-generation managed service providers (NextGen MSPs) criteria to identify companies that offer the most innovative solutions and services and are leading the channel industry into the next phase of IT evolution. These companies were selected from the pool of MSP 501 applicants, the channel’s most prestigious and comprehensive global survey and ranking of managed service providers (MSPs). 

Some of the criteria Channel Futures used to identify NextGen MSPs included significant revenue generation from service areas such as managed, professional and cloud services; use of modern tactics like social media and webinars for customer acquisitions; and expanding services in advanced technologies such as AI, cloud and cybersecurity, to name a few. 

2024 Next Generation MSPs (by MSP 501 Ranking) 

Source: Omdia

Download the full 2024 Channel Futures Next Generation MSP list.

For full insights and analysis of the Channel Futures MSP 501 survey, check out Omdia’s Next-Generation Managed Service Providers (MSPs) Survey Insights – 2024.  

Also, see Dave Raffo’s article, “Channel Futures Showcases 2024 Next Generation MSPs, an MSP 501 List."