SMB Managed Services Spending Up 9.2%

Upbeat forecasts about the managed services market continue. Small and midsize businesses will increase their managed services spending to $14.3 billion in 2009, up 9.2 percent from 2008, according to Techaisle. But MSPmentor continues to caution readers: Not all managed service providers are succeeding.

Let’s start with the good news: The SMB market (1-999 employees) will further accelerate managed services spending in 2010, lifting global spending to $15.7 billion, up 9.6 percent from $14.3 billion in 2009, predicts Techaisle. Also of note: Roughly 36 percent of managed services spending by SMBs in 2009 will be made in the 10-49 employee size category — making it the most lucrative target segment but also most difficult to reach, reports Techaisle.

Let me repeat that point: Techaisle says businesses with 10 to 49 employees are difficult to reach. We agree. At that size, a business typically lacks internal IT support, and entrepreneurs are so business “running” their businesses they often don’t have the time to sit down and set a technology strategy.

Meanwhile, we continue to hear from some MSPs that are struggling to collect unpaid monthly invoices from customers. Likewise, some SaaS specialists report that their MSP customers are increasingly delinquent paying bills.

While MSPmentor remains upbeat about the overall managed services market, we caution anyone who thinks the managed services market is “recession proof.”  We don’t believe the managed services trend will “lift all boats” since MSP success frequently is determined by business savvy and executive leadership rather than technical tools.

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