MSPs continue to show resilience in the face of increased competition and economic uncertainty
Barracuda Networks, Inc., a trusted partner and leading provider for cloud-first security solutions, today announced key findings from The Evolving Landscape of the MSP Business 2023 report, which points to numerous opportunities that lie ahead for MSPs in the coming year. The report is being released in conjunction with MSP Day, which will include virtual and live events in North America and Europe for MSP partners. Created by Barracuda in 2018, MSP Day is now in its sixth year, and it continues to highlight, challenge, and celebrate the evolving managed services industry.
The sixth annual report demonstrates that there is still a huge appetite for managed services, with global services-related MSP revenue set to increase by a further 25% in 2023 compared with 2022. Barracuda surveyed 500 decision makers and knowledge workers from managed service provider (MSP) organizations across North America, EMEA, and ANZ, with between five and 350 employees.
Perhaps unsurprisingly, the answers all revealed similar aspirations and challenges throughout the different regions when it comes to service provision and customer expectations. This report examines the progress that MSPs across the world have made over the last year, their current status, and what the future might hold.
“The past 12 months have seen the continued rise of the MSP,” said Neal Bradbury, SVP and General Manager, Barracuda MSP. “And MSP Day 2023 gives us the perfect opportunity to acknowledge the hard work the MSP community is doing. Here at Barracuda, we applaud the difference MSPs continue to make to businesses worldwide and MSP Day was designed to reflect this.”
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Key findings of the report:
- MSPs show their resiliency in 2023.
- Although the uncertainty of the economy continues, MSPs are expecting to expand upon the growth trend seen in 2022, with revenues expected to increase from an average of $12 million per MSP in 2022, to over $16 million in 2023.
- MSPs are continuing to diversify their product offerings.
- MSPs are looking to expand their client base beyond their existing sectors of focus including emphasis on security offerings, with 85% of respondents seeing an increased need to offer a security operations center (SOC) service, as an example.
- Continued growth is creating challenges for MSPs.
- 47% of respondents report that they wish their own organization had more access to support for hybrid/remote working best practice guidelines.
- 34% are concerned about the heightened competition in the MSP market compared to 2022.
- Stress levels for the average employee within MSPs is more likely to be high (27% in 2023, compared to 16% in 2022).
- Sustainability continues to be a priority.
- Almost all respondents to this year’s report (99.8%) said their organization is taking steps to boost its sustainability credentials.
- 50% said they are making sustainability a key part of their business.
“As always, Global MSP Day will look at the latest ‘Evolving Landscape of the MSP Business’ report, which delves deep into the challenges and opportunities MSPs are expecting in 2023,” said Richard Tubb, IT business growth expert and MSP Day speaker. “This is the perfect reminder that, yes, we make a difference to our clients, and yes, that should be celebrated!”
“There are many opportunities for MSPs in 2023. Small and mid-sized businesses face an enormous gap between their current level of security and the level of security they should have to stay safe,” said Roy de Bruijn, Chief Commercial Officer, Tredion. “It is our responsibility to raise awareness among SMBs of the cybersecurity risks they face, the gaps they need to address, the compliance requirements they face – such as the NIS2 directive in Europe – and the investment that needs. The future is bright for MSPs who have the people with the skills to support customers through that journey.”
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