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The number of managed service and players continues to expand with more of the channel increasing their monthly recurring revenues that come through services.
The sixth annual MSP Global Pricing survey from Kaseya not only pulls back the covers on a market in growth but highlights some of the specific areas of interest and highlights the secrets to the success of those that are leading the market.
The survey found that 26% of respondents now gain more than 16% of their revenues from monthly recurring business and there are more close to reaching that level, with 18% enjoying 10-15% of MRR.
The survey found that those leading the market are providing more services to gain a greater share of the customer wallet as well as being in a position to be a trusted supplier of a complete solution.
Drilling down into the areas that the high growth MSPs are operating in includes: delivering network operations centre (NOC) expertise, infrastructure monitoring, backup and DR plus security services.
Security remains one of the biggest concerns for customers and those MSPs that are able to offer two factor authentication along with a range of other services are the most likely to be growing strongly.
The Kaseya survey found that the leading players in the market were offering on average around eight discrete security services. The same was true of those excelling in networking support, with a range of options being made available to users.
Customers placed security as the major challenge for 2017, followed by concerns about the cloud, making it crucial for MSPs to be in a position to deal with those worries.
“The intent of the report is to help all MSPs unlock their potential, and to arm them with the knowledge they need to better succeed. Our annual MSP pricing survey is a critical tool that helps the MSP community keep a pulse on this thriving industry. It answers important questions of ‘how’ and ‘why’ certain MSPs are succeeding, and what others can do to achieve the same level of success," said Miguel Lopez, svp and general manager for MSP Solutions at Kaseya.
The growth formula
As well as providing a wide range of in-demand services there are other secrets that Kaseya has identified help make a winning MSP.
o Clear Vision of SMB Market Trends: High-growth MSPs don’t just ‘check a box’ when it comes to creating service offerings. Having a clear vision of what current and prospective clients need from their service provider partners today and in the future allows MSPs to invest in the right technologies and align their business strategy for future growth.
o Economies of Scale: High-growth MSPs continually find ways to free up resources (both money and staff) to be able to deliver more services, recognise more revenues, and increase profits.
o Confidence in Delivered Value: High-growth MSPs are able to appreciate and communicate to clients the full value of the services they provide. For example, high-growth MSPs are much more likely to charge higher rates for cloud services.