Australia MSP Market: Turbulence Amid Growth

Even as the Australia managed services market continues to expand, some aspiring MSPs and solutions providers in the country are hitting financial bumps and/or closing up shop. It’s a healthy reminder — seen over and over again in the global managed services market — that a rising tide doesn’t lift all boats. Here’s what’s happening in Australia.

Several of MSPmentor’s Australia readers are quick to note that three aspiring MSP-oriented companies have stumbled or imploded in recent weeks. The victims include:

“There’s a bit of a shakeout for sure,” notes Jon Kalaugher on Naverisk, an Aukland, New Zealand-based software development firm that specializes in remote IT management solutions.

Reality Check

Time for Australia’s VARs and MSPs to press the panic button? Hardly. With each new technology wave (PCs, client-server, Web, etc.) some solutions providers thrive and others fail. The same is true in the managed services market, where some pundits think roughly 10 percent of North American MSPs have closed up shop or repositioned themselves in the past year or so.

Still, top MSPs worldwide report continued strong performance. We expect to highlight many of those managed service providers in our third-annual MSPmentor 100 report (participation is open through Dec. 11, 2009).

In Australia, interest in managed services continues to grow. Numerous remote monitoring and management (RMM) companies as well as PSA (professional services automation) firms have been holding local and regional events and forming user groups across Australia and New Zealand.

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