Research suggests that the already substantial MSP market is growing at a fast clip. That’s because more companies are choosing to outsource their IT functions, especially as the technology mission changes to managing cloud services and building an increasingly automated environment.
To give you a sense of the market potential, a recent report by ResearchAndMarkets.com found that overall worldwide IT spending was expected to reach $2.8 trillion by 2023, and the MSP portion of that was expected to reach 11 percent, which translates into a substantial sum of money.
While you may want to take these figures as guidelines, they at least give you a sense that this is a growing market with a ton of potential. As smaller companies look to adopt more modern technologies, it’s becoming increasingly difficult to do so on their own. Many smaller organizations would prefer to concentrate on their core businesses, rather than the technical side of things, and that is contributing to a growing market.
Times are changing
As SMBs move away from boxed software and on-premises client-server environments, companies will be looking to you to guide them to the cloud future. In fact, the report found that many businesses are more than happy to pay MSPs to help manage all of the complexity associated with that for them. The report states, “MSPs will be one of the fastest-growing routes to market as more businesses seek MSP support in moving to the cloud.”
Another report from ResearchAndMarkets looked more closely at Western Europe, but its general findings could apply anywhere. For instance, the report found that small businesses with between 10 and 250 employees are the core target market for MSPs. These are the companies that really benefit the most from these kinds of services. Further, the report found that, “IT and managed services, infrastructure, and business applications account for over 75 percent of revenue for MSPs and are expected to deliver further revenue growth.” You want to make sure that these are core strengths as you move forward, if they aren’t already.
However you choose to look at these numbers, they at least give you a sense that the market is growing. There is a big opportunity for MSPs, especially in partnering with SMBs, and that has to be good news for everyone.
Photo: Joshua Earle / Unsplash
