IT Glue GlueX: SMB Projections and How MSPs Can Drive Value Proposition

GlueX 2021, the virtual MSP conference hosted by IT Glue, kicked off Tuesday in tandem with the announcement that the company has acquired TruMethods. 

The conference began with Fred Voccola, CEO of Kaseya, Mike Sanders, EVP of account management at Kaseya, and Nadir Merchant, CTO and GM at IT Glue, offering an interesting overview of – and insight into – the SMB market.

Kaseya’s Fred Voccola

Last year was a very interesting and challenging year. Those who have provided IT and security services, according to Voccola, were actually pretty lucky. The industry flourished, despite the chaos happening all around us. Leading the charge were tech providers. 

SMB Market Shifts and Maturation

2020 was really the culmination of the last 10 years of the MSP market maturing, said Voccola. In the next few years, as the market continues to evolve, the first thing to think about is what’s happening with customers. Ninety-one percent of SMBs expect to increase their technology spending over the next three years. Businesses need to continue to invest in technology as a main part of their capital. Small businesses will grow faster than the overall SMB sector. 

SMBs are in the middle of a digital transformation — when technology drives or transforms a business. When looking at a typical small to midsize business, compared to where they were five years ago, they’re quite far along that track. 2020 was the worst for our modern economy, yet SMB technology spending grew 6%. This says it all. This tells us that SMBs need to continue to invest in the technology that they believe is the best use of their capital. Not only to grow, but to survive.

MSPs Driving Value Prop

ConnectBooster’s Julie Marvelli

In another session, Julie Marvelli, channel engagement manager at ConnectBooster, talked about how every MSP can drive value proposition. MSPs looking to grow and scale their business need to pay attention to cash flow, and this especially applies to the SMB market. 

Many MSPs invested a lot to ensure business continuity for their clients through the pandemic. Finances are tricky, and with bigger expenses, a lot of MSPs are still holding the line on pricing. It’s hard to even fathom asking for more during uncertain times.

It’s possible many haven’t taken the time to sift through their financials and tally their current costs for supporting each client. But now, Marvelli emphasizes, MSPs should re-evaluate their pricing models.