Company’s study finds pandemic, skills gap driving demand for cybersecurity services
Most MSPs plan to expand their portfolio of services this year and security will be a key focus, according to a report released Thursday by Barracuda MSP, which offers advanced protection solutions to managed service providers.
The Lowdown: The company’s latest market study, The Evolving Landscape of the MSP Business Report 2020, surveyed 300 MSPs from the United States, the United Kingdom, Canada, Germany, Belgium, and other countries about their plans and the state of the industry.
The Details: The key findings from the survey include:
> Service expansion: 91% of MSPs said they plan to increase the breadth and depth of their services in 2020.
> Revenue generation: 69% of MSPs said managed services will be the top revenue generator for them, a jump from 2019, when 54% said managed services were their top opportunity.
> Hybrid approach to services: 53% of MSPs expect to see more than half of their business come through managed services. Another 45% said up to 50% of business will come from managed services.
> Security services: Endpoint, e-mail, and network security each made it onto the list of the top five services for 2020. As an indication of the increased importance of security, only e-mail security made the top five last year.
> Security opportunity: 79% of MSPs said customer concerns around security offered a good opportunity for them. In addition, 72% said their customers’ lack of in-house security skills would create new revenue possibilities.
> Security demand: 88% said demand for security services was either moderately or significantly growing.
The full study can be found here.
The Impact: A pointed message from the survey was that the global coronavirus outbreak has created growing demand for security solutions from companies that suddenly have a substantial remote workforce, are seeing an increase in cyberthreats related to the pandemic, and are still wrestling with such challenges as the in-house security skills gap. This opens more opportunities as businesses turn to MSPs for help in this area.
The study echoes similar findings from companies like Kaseya, which released a survey earlier this month that said security is the top priority for MSPs in 2020.
Background: The report was released on the third annual MSP Day, a movement that Barracuda MSP kicked off in 2018 to put a focus on the MSP industry.
The Buzz: “Since launching MSP Day, and the corresponding Evolving MSP Landscape report, we’ve witnessed a steady rise in the appetite for managed services throughout the world, which is evident in this year’s findings,” said Brian Babineau, senior vice president and general manager of MSP solutions at Barracuda. “Among that appetite, security is the most sought-after service, particularly given our current global situation and cybercriminals’ willingness to exploit organizations that are suddenly much more vulnerable.”
“Security as a managed service is only going to become more sought-after as organizations continue to wrestle with a shortage of skills and adjust to new working conditions, presenting a huge opportunity for MSPs to bolster their portfolios and cement themselves further as vital partners to their customer base,” said Carolyn April, senior director of industry analysis at CompTIA. “Despite the skills gap and the pressure of consolidation for many, this report portrays a growing opportunity for the MSPs of the world as adoption of managed services continues to rise, of which security offerings are the leading commodity.”