MSPs are expected to deliver 25 percent of the $4 trillion that SMBs and large enterprises will spend on IT products and services globally by 2021, according to AMI-Partners’ study of the global MSP market.
The global study indicates MSPs are gaining share of small and medium businesses (SMBs) and large enterprise IT budgets by providing expanding portfolio of technology and business-related managed services.
“Those MSPs winning and gaining share are more in tune with their customers’ business challenges, especially vertical industry-specific issues,” said Andy Bose, CEO AMI-Partners.
Despite rapid growth, MSPs operate a complex business model – one that relies on multiple IT solutions, platforms, and service delivery and management tools from a myriad of technology partners.
This model requires constant new learning to stay abreast of the technology evolution. The typical MSP uses over 11 different tools to monitor and deliver managed services and may partner with upwards of 15 individual technology and platform vendors to architect tailored solutions for their customers.
MSPs are highly selective and prefer working with technology and tool vendors that can meet their selection criteria. For example, the MSP Backup solution from NAKIVO, a comprehensive data protection software, helps MSPs meet their clients’ backup and recovery needs and improve their overall service offerings. This includes a mix of product capabilities and marketing programs that can drive differentiation, business agility, and enhanced customer experiences.
Small- and mid-sized VARs are in the midst of transforming their businesses into the MSP model. The study indicates that upon planning and launching managed services, it takes around 12 to 14 months on average to attain profitability.