European MSPs generate 350bn euros but key markets remain largely untapped

MSPs in Europe generated revenues of circa 350bn euros last year but with just 36.5% of them offering telecoms and 13% delivering managed print services these two important market segments offer the potential for significantly more growth.

The managed services market in Europe is fast-moving with profitability linked to scale and M&A activity on the up, according to a new database report by Comms Dealer sister company IT Europa that sampled the market across 34 European countries.

The 'Managed Service Providers in Europe - the Top 1,000' research report states that the overall market grew 8.5%, with smaller markets registering the fastest growth (Bulgaria 33%, Slovakia 21%, Turkey 18%).

Russia and Norway both grew 14%. France, Netherlands and Germany recorded expansion of just over 10%, while the UK achieved 7% growth. Spain showed a decline.
IT Europa's analysis also separated out a geographically diverse top 20 MSP league table based on the best growth performers.

The study also segmented the main growth markets addressed by MSPs: 86.5% offer network and infrastructure management; 72.4% server and web management; 71.9% provide security management; 61.2% deliver storage and back-up management; 60.5% provide SaaS solutions and just over 50% offer applications management.

"We are seeing more and more traditional channel organisations embrace managed services as a delivery model as customer demand continues to rise," stated Alan Norman, Managing Director of IT Europa.

"The factors behind the surge in demand, the changes in customer buying behaviour driving them and the opportunities this presents for MSPs will be a major subject for debate at the Managed Services & Hosting Summit 2016 which takes place in London in September."?