7 Things to Know About the State of the MSP (PART 2)

5. Break-fix is back, but it’s not your father’s break-fix

Break-fix is back, but it’s not the same as it was in the past. Revenue associated with managed security services seems to be shifting to break-fix across regions – this year’s survey saw an 11% increase in break-fix revenue. Traditionally, break-fix reflected MSPs having flexibility built into their contracts to charge extra for projects that fall outside of their normal responsibilities. Now, break-fix has morphed into a co-managed service offered by MSPs to help over-burdened IT departments in larger companies stay afloat. MSPs implementing the new break-fix for legacy clients that have not been converted over to managed services. However, MSPs are also planning to add other services to their offerings next year. About one-quarter of MSPs are planning to add services that can help their clients transition to a more cloud-based architecture, protect their data and improve their incident response.

Which services are MSPs adding in the next 12 months?

Source: Datto

6. What security services & solutions will MSPs be adding in the next year?

MSPs know that security is a growth area that can juice up their revenue fast. A third of respondents in all markets still believe security solutions continue to present new business opportunities. It’s also a constantly changing and dangerous landscape. With the rapid growth of existential threats like ransomware and business email compromise (BEC), clients will be looking to MSPs for help navigating it safely. MSPs are responding to that call by adding new security solutions to their arsenal. Over one-quarter of MSPs plan to add at least one new security solution in the next twelve months. Managed detection and response (MDR), dark web monitoring and privileged access management are the top three contenders.

What security services will MSPs be adding next year?

Source: Datto

7. The most significant challenge MSPs face isn’t cybercrime

For the second year in a row, respondents said that competition is their top challenge (29%). This isn’t particularly surprising as the MSP space continues to grow, and the landscape becomes more competitive. However, even in the face of that, MSPs are confident that their revenue will grow next year. However, that growth could be limited by sales and marketing challenges. Specifically, MSPs have trouble finding the optimal tools, time and strategy to deliver high-quality leads. That’s especially problematic in today’s market. More SMBs will be seeking out technology services from MSPs as the world continues its digital transformation. Additional regulations around information security and insurance requirements will drive clients to MSPs for compliance help. The need for stronger defences in the face of surging cybercrime will also spur SMBs to look to MSPs and MSSPs for specialized help.

The 5 biggest challenges for MSPs

                                                                                                                           Source: Datto

This is the perfect time for businesses to reboot their cybersecurity practices and put strong protections in place against a cyberattack. Our security solutions can help keep businesses out of trouble effectively and affordably.

Source: ID Agent