Barracuda Networks Inc., a provider of cloud-first security solutions, announces findings from The Evolving Landscape of the MSP Business 2023 report, which points to numerous opportunities that lie ahead for MSPs.
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 in its sixth year, and it continues to highlight, challenge and celebrate the evolving managed services industry.
The sixth annual report demonstrates there remains a huge appetite for managed services, with global services-related MSP revenue set to increase by a further 25 percent this year compared to last.
Barracuda surveyed 500 decision-makers and knowledge workers from MSP organizations across North America, EMEA and ANZ, with between five and 350 employees.
Answers revealed similar aspirations and challenges throughout the different regions when it comes to service provision and customer expectations.
The report examines the progress that MSPs 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 of Barracuda MSP. “And MSP Day 2023 gives us the perfect opportunity to acknowledge the hard work the MSP community is doing.”
Key findings of the report include:
- MSPs show their resiliency in 2023. – Although the uncertainty of the economy continues, MSPs expect to expand the growth trend seen in 2022, with revenues expected to increase from an average of $12 million per MSP in 2022 to more than $16 million in 2023.
- MSPs continue to diversify their product offerings. – MSPs are looking to expand their client base beyond their existing sectors of focus including an emphasis on security offerings, with 85 percent of respondents seeing an increased need to offer a security operations center (SOC) service, as an example.
- Continued growth is creating challenges for MSPs. – Forty-seven percent of respondents report they wish their own organization had more access to support for hybrid/remote working best practice guidelines. Thirty-four percent 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 higher (27 percent in 2023, compared to 16 percent in 2022).
- Sustainability continues to be a priority. – Almost all respondents to this year’s report (99.8 percent) said their organization is taking steps to boost its sustainability credentials. Half said they are making sustainability a key part of their business.
To view the full report, click here.
This year’s event includes a virtual and in-person experience. The virtual event highlights insight from international IT business growth expert Richard Tubb and a leading voice and advocate for the IT ecosystem, The Computing Technology Industry Association (CompTIA).