Annual State of the MSP Report finds increases in recurring revenue and service specialization
Datto’s channel partner advocate, Rob Rae, succinctly summed up the finding of the managed service software vendor’s annual State of the MSP Report by saying, “It’s a great time to be an MSP.” The annual survey finds optimism and confidence riding high among the providers of managed services surveyed.
The Lowdown: Datto surveyed more than 1,600 MSPs around the world on their revenue, growth, and technology focus. The results show that the transition from legacy transactional and event-driven break-fix services is nearly complete. Eight in 10 MSPs say that recurring services are the driver of their revenue. And nearly half (44%) of MSPs say recurring managed services make up more than half of their revenue. Growth remains strong in managed services, as 71% say they plan to hire more staff in the next 12 months to maintain pace with market demand.
The Details: MSPs are increasingly specialized in their go-to-market strategies and models. According to the Datto report, 56% of MSPs are aligning their services with specific industries and verticals. Health care is the most popular industry for the second year in a row.
The Buzz: “The survey shows what we see every day — it’s a great time to be an MSP. It’s a positively charged environment,” said Rae, vice president of business development at Datto. ”Almost half of surveyed partners have been working in the industry for more than 15 years and nearly 100 percent of them said that right now is the best time to be in their industry. For more than a decade, Datto has been passionate about providing the right technology to MSPs, who support the backbone of the economy through their work with small businesses.”