Managed service providers expect a speedy recovery from the slowdown of COVID-19

1641388480 Managed service providers expect a speedy recovery from the slowdown

MSPs believe that disaster recovery as a service, cybersecurity, and password management are the best new revenue opportunities, according to a new study.

IT Glue asked managed service providers about the services that offer the best revenue opportunities in the second half of 2022 as part of the Global MSP 2022 Criteria Report.

Image: IT Glue

Before COVID-19 hit, regulatory service providers listed the difficulty of hiring good staff and not enough time in the day as the main challenges they faced. Now the biggest concerns are more lock-ins, cybersecurity, and customer churn.

The Global IT MSP 2022 Indicator Report contains pre- and post-covid-19 analysis of how regulated service providers are responding to the coronavirus. The survey of 1,500 MSPs includes two datasets - one from the February before locksmiths began and one from May when companies had been 100% remote for nearly two months.

Seventy-four percent of respondents listed the potential for another lockout in the fall as a major concern for the second half of 2022. Other new concerns that have emerged during cybersecurity threats, consumer churn, and price pressures are the pandemic.

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Compared to other sectors, the MSP industry appears to be doing relatively well. The inquiry suggests that MSPs have hit less than many sectors of the economy, and MSP leaders expect a swift reversal.

In the short term, however, 51% of MSPs saw a reduction in monthly income as a result of coronavirus shutdown. More than a quarter (29%) saw their accounts upgraded, indicating that more clients were delaying paying for services. Overall, MSP leaders now have the same economic outlook as they did in February, with most respondents expecting a speedy recovery from the second - quarter economic downturn.

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The study found that churning had not changed much since the 2022 survey, but that the income associated with it was less. The report's authors suggest that this means that new customers were brought in immediately, that the cost of building new ones was lower, or that MSPs were dropping out of clients. which was not so valuable. The survey found no correlation between the level of churning and the net margin, which may indicate that MSPs are strategically using consumer churning to increase the bottom line.

2022 data also shows that focused MSPs earn better margins than MSPs with a broader approach, a change from the 2022 data. The biggest pitfalls associated with higher profits are legal with 43% of legal-vertical MSPs reporting 20% ​​or more profits, followed by MSPs in direct government (40%), finance (39%), and professional services (38%).

Survey respondents listed disaster recovery as a service, cybersecurity awareness, password management and security as a service as the most promising revenue opportunities.

The survey also asked what tools MSPs use to manage their businesses, including remote monitoring and control, password managers, and network diagramming software.

There was a significant increase in the number of MSP clients using dedicated password managers, up 78% in 2022 compared to just 40% in 2022. In 2022, Word and Excel were the top solutions common for managing passwords with almost 60% using this solution in 2022.

The survey found that the majority of MSPs still register messenger networks manually with 60% using this approach. Forty-eight percent use network analysis and 8% use API. Many survey respondents stated that network diagramming was not a priority.

IT Glue, a Kaseya company, provides simple and secure IT documentation for IT professionals.

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