The MSP economy is rapidly growing, and projections suggest the industry will exceed $500 billion by 2028. That growth reflects how businesses require more skill and support to manage and maintain their technology infrastructure. With an increasing complexity in IT systems and cybersecurity concerns, they are turning to third party firms for their expertise.
The increase in demand doesn’t immediately translate into success for MSP businesses, as there are real challenges to face. Among the most cited “greatest challenges” from MSPs, they include:
- More competition within the industry, including from big players.
- Customer acquisition.
- Revenue growth and profitability.
Gaining a Competitive Advantage: Knowing Your Customer
It’s important for any business to recognize and understand market trends from their customer’s perspective. Thus, it’s important to note the increase in industry competition isn’t only about more competitors, but in customers becoming more familiar with the MSP model.
The break-fix solution has been heavily challenged by the concept of managed services over recent years, and customers require less education as to the benefit of working with an MSP. That means client-businesses are more savvy and selective when choosing a service partner.
Whereas in previous years, a customer could be swayed by the premise of ongoing support services, they now want to know the details of your strategies, level of service, tool stacks and solutions for specific problems. This requires more from an MSP to have a comprehensive strategy to reinforce their service offerings.
With more businesses permanently employing a hybrid in-office and work-from-home model, they are rapidly investing in cloud solutions. They are concerned about security within a cloud ecosystem, optimizing their business management tools, storage and backup of data, and plans for business continuity and disaster recovery (BCDR). This trend doesn’t only apply to large businesses, but SMBs are shifting their focus to cloud technology too.
Top performing MSPs are meeting these demands with increased focus on email security, password policies, security audits, multi-factor authentication solutions, firewall and other remote access technologies for advanced endpoint security.
Remaining Relevant and Finding Success
Acquiring new clients and remaining profitable requires MSPs to provide real solutions to a demanding, savvy, technology-driven market. You are challenged to keep active and informed of the solutions to meet the growing needs of your existing and prospective clients.
The statistics and trends all point to accelerated demand, so the opportunity to flourish is abundantly available. If you don’t, your competitors will – and they’ll win.
About MSP Corp
MSP Corp understands you’ve worked hard to build your business and you want to protect it. With a mission to be a world-class business partner for MSP owners across Canada, we actively seek to acquire and partner with owners looking to secure the value of the business they have built and provide a seamless exit process that ensures business continuity and employee and client stability.
Contact us today to learn more about selling your business and maximizing its value.