Datto’s third annual State of the MSP Report, based on a survey of more than 1,600 MSP partners around the globe, showcases the continued evolution of the MSP industry.
Recurring revenue growth. IT service providers are adjusting their business model to include more managed services and more recurring revenue: more than 80% said recurring revenue made up a proportion of their revenue; for 44% of respondents, recurring services account for more than 50% of revenue;
Industry specialisation. As they take on a more strategic role, MSPs recognise the value of having expertise in specific industry sectors: 56% of MSPs specialise in services for a particular industry, with healthcare the most popular choice for the second year in a row, followed by finance and legal.
Recruitment challenge. To keep pace with growth in managed services, 84% of MSPs plan to take on more staff in the next 12 months. MSPs in Europe cite hiring as their number one pain point. Almost half (45%) believe it will be harder to recruit new talent this year.
Industry pain points. For MSPs worldwide, the top pain points are marketing and sales (44%), work/life balance (38%), revenue growth (33%), ransomware/cybersecurity (30%) and hiring (30%). Of least concern are customer churn (6%), competition (9%), compliance/data privacy (13%).
Top products and services. The most common products and services offered by MSPs are help desk (87%), networking (84%), productivity software (79%), business continuity and disaster recovery (75%) and virtual infrastructure (71%).