Managed Service Providers (MSPs) are confident about the future despite the current corona crisis, according to research conducted by Datto. The MSPs are particularly expecting a lot from the possibilities of 5G.
Research conducted by Datto among approximately 1.800 global MSPs – Datto’s most important sales market – shows that these providers continue to confidently look to the future. Despite the fact that the current corona crisis also contains several uncertainties for these providers. Prior to the corona crisis, they expected to achieve a turnover growth of at least 17 percent, which has since dropped to only 7 percent. According to Datto, this means that the growth in the MSP market will remain somewhat the same in 2020.
Expecting a healthy future
Nevertheless, the long-term development looks better according to the researchers. Of the MSPs surveyed, 40 percent expect an average turnover of around 2.5 million dollars (2.2 million euros) this year. According to Datto, this indicates that the market is healthy and that there are still opportunities.
Significant growth stems, among other things, from the provision of managed services. In addition, MSPs are increasingly setting specific targets for profit and revenue growth, according to the researchers. Services to small and medium-sized enterprises are still very important. Datto considers MSPs as the ‘cornerstone’ for IT services to this market sector.
In addition, MSPs are also seeing good prospects due to a changing IT landscape. For example, they see the demand for cloud services increasing as more and more companies move away from on-premise environments and migrate their important applications to the cloud. According to Datto, increased remote working also presents opportunities to speed up certain processes.
Concerns of MSPs
In spite of the good prospects, MSP’s will also encounter some obstacles, according to the research. The uncertain economic future is one reason, but respondents also identified customer cybersecurity, work/life balance, staff shortages, sales and marketing as potential problems.
Datto suggests that the concerns surrounding cybersecurity, with its 34 percent the biggest problem to MSPs, can offer new opportunities to MSPs that specialise in this area.
New technological opportunities
The provider of cloud-based software and technology solutions and applications also examined the expectations of MSPs regarding new technological developments. The highest expectations are for the introduction of 5G. According to the study, MSPs expect to deliver faster wireless networks and connections to their customers in the near future.
In addition, they see many opportunities to help customers with the development of services for this technology, the testing of solutions and applications and the eventual implementation. The research concludes that all of these things should provide many innovation opportunities.