Top 10 Managed Services Provider Trends

Pardon me for dragging a bit today. I have a slight case of writer’s block after producing the MSPmentor 100 report. So instead of sharing “new” managed services content here, I’m offering a top 10 list taken directly from the MSPmentor 100 report. Here are the top 10 financial trends/observations from the MSPmentor 100 report…

Note: The 21-page MSPmentor 100 report is a free PDF download from our resource center (registration required). Or, you can read selected MSPmentor 100 rankings here.

MSPmentor 100: Top 10 Financial Trends and Metrics Worth Noting

1. Annual Managed Services Revenues: MSPmentor 100 companies generated a combined $799 million in managed services revenues for 2008, up 46% from 2007. The MSPmentor 100 companies easily  outperform the broader managed services market, where spending is growing at a compound annual rate of eight percent, according to Insight Research.

2. Overall Company Growth: As a whole, the MSPmentor 100 companies lifted their top-line revenues (including non-managed services revenues) by 13 percent in 2008 vs. 2007. In other words, the vast majority of their growth involved managed services (as depicted in item 1 above).

3. Company Size: Of the 423 survey participants that generated at least $200,000 in annual managed services revenue:

4. Devices Managed: As a whole, the MSPmentor 100 companies were under contract to remotely manage 870,531 devices in 2008, up 146 percent from 354,029 devices in 2007.

5. Most Popular Managed Services Offered:

NOTE: What categories should we add for next year’s list? Let me know (joe [at] ninelivesmediainc.com) or post a comment below.

6. Network Operation Centers: More than 40 percent of participants depend on external network operation centers (NOCs):

7. Biggest Challenges: Survey Participants are struggling most with the following focus areas (multiple answers permitted):

8. Looking for Help: Survey participants say they are most likely to outsource:

Note: Multiple answers permitted above, so total exceeds 100%

9. Three’s Company: The typical MSPmentor 100 company uses more than three MSP-related tools (remote monitoring, professional services automation and hosted services, among others).

10. Emerging MSP Opportunities: Nearly 10 percent of survey participants already offer some type of high-end managed videoconferencing solution to their customers. And four percent of survey participants are embracing managed digital signage solutions.

As you review the list above and the complete MSPmentor 100 report, please send us constructive criticism and your thoughts on how we can improve next year’s effort.

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