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Innovate, Secure, Grow: Key Strategies from the MSP 501 Playbook
MSPs are evolving and charting the future of managed services.
Devan Adams
July 26, 2024
4 Min Read
My Life Graphic/Shutterstock
Every year Channel Futures ranks the IT channel’s most impactful partners via its MSP 501, the channel’s most prestigious and comprehensive global survey and ranking of managed service providers (MSPs).
Respondents consist of partners with different specialties and statures, including pure-play MSPs, managed security service providers (MSSPs), value-added resellers (VARs), and cloud service providers, as well as partners of various sizes: small (1–14 employees), midsize (15–49) and enterprise (50 or more).
Omdia's Devan Adams
The IT channel is experiencing a transformative period characterized by robust growth and burgeoning opportunities. According to results from the MSP 501 survey, several key trends are shaping the industry, offering valuable insights for MSPs and IT vendors alike.
Full insights from the Channel Futures MSP 501 survey are available in Omdia’s Managed Service Provider (MSP) 501 Survey Insights – 2024 report. (Omdia is part of Informa Group, Channel Futures' parent company.)
Partners Are Bullish about 2024
MSPs anticipate high 2024 revenue and profit forecasts. More than 25% expect revenue and profit increases above 20%, driven by the increasing reliance on technology across various industries. Businesses are continuously seeking ways to optimize their IT operations, enhance security, and ensure compliance, all of which are services that MSPs are well-positioned to provide.
Source: Omdia
High Growth Potential
Several service areas with significant growth expectations really stood out, including managed security, help desk, remote monitoring, managed compliance, and artificial intelligence (AI). These services are becoming essential as organizations strive to protect their digital assets, ensure smooth IT operations, and leverage AI for improved decision-making and operational efficiency.
Source: Omdia
Small Businesses and Financial Industries the Biggest targets
Small and midmarket businesses (SMBs) are the primary target customer types for MSPs. These businesses often lack the resources to manage their IT infrastructure in-house, making them ideal candidates for outsourced IT services.
The financial and manufacturing sectors are the main vertical targets. Financial institutions require robust security and compliance solutions to protect sensitive data and adhere to stringent regulations, while manufacturing companies need reliable IT services to ensure uninterrupted production processes and safeguard intellectual property.
Source: Omdia
Social Media and Networking Most Utilized for New Client Acquisitions
Social media and industry networking have emerged as the most successful ways for MSPs to acquire new customers. By leveraging popular platforms like LinkedIn and X (formerly Twitter) and networking at industry events MSPs can engage with clients, share content, and generate leads.
Source: Omdia
The Evolution of the Modern MSP: Trends and Triumphs
The IT channel is meta morphing, driven by the increasing complexity of IT environments and the growing need for specialized services which MSPs offer. Over the next few years, the market will continue to evolve in key areas:
Increased AI adoption: AI and automation will become integral to MSP operations, enabling them to streamline their operations and deliver more efficient services.
Managed services business expansion: As the needs of clients evolve, channel partners will continue to expand their managed services portfolios resulting in more value-added resellers (VARs), solutions providers, systems integrators and others growing outside of their core competencies and offering more managed services.
Cybersecurity focus: As cyber threats become more sophisticated, MSPs will place a greater emphasis on delivering comprehensive cybersecurity solutions.
Regulatory compliance: The demand for managed compliance services will grow as businesses face increasing regulatory pressures.
Strategic partnerships: MSPs and IT vendors will develop deeper strategic partnerships to deliver integrated solutions and platform-based services to provide more sticky and comprehensive offerings to clients.
For full insights and analysis of Channel Futures MSP 501 survey, check out Omdia’s Managed Service Provider (MSP) 501 Survey Insights – 2024.
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