Subscription-based managed services are the top revenue generator for MSPs according to executive respondents of a Kaseya survey (68 per cent). It is the second most time-consuming activity according to 43 per cent of technicians.
About a third said they get between one and 25 per cent of their revenue from co-managed IT services and another 29 per cent said they get between 26 and 50 per cent of their revenue from it.
Just over half of the respondents are keen to participate in some form of M&A activity and of this group about 14 per cent said it is their primary growth strategy.
The primary challenges MSPs anticipate are acquiring more customers (35 per cent of executives) and dealing with advanced security threats (21 per cent. of technicians).
Security on the rise
The top five services that MSPs intend to offer in 2023 fall under the cybersecurity umbrella, finds Kaseya. This covers identity and access management, security awareness training and Dark Web monitoring.
In year-over-year comparison, the vendor found a 15 per cent jump in respondents who chose cybersecurity as the top IT challenge their clients expect to face this year.
About 65 per cent of respondents said most, or all, of their clients have asked for cybersecurity advice.
“Cybersecurity will continue to be a pressing issue, and MSPs will need to be up-to-speed on their security offerings to keep pace with SMB demand,” said CSO Mike Puglia.
The percentage of respondents who back up their customers’ SaaS applications increased to 83 per cent from 78 per cent in 2022. Technician respondents said that enhanced security services recorded the most growth in the last 12 months; executives reported it as second place.
Automation and integration
About 90% of respondents listed automation as a crucial technology for their business because it improves efficiency, allows them to take on more clients and generates more revenue.
The same proportion agree that integration between core applications is critical to their business.
“This report drives home the importance of automation and integration to make MSPs more productive, efficient and profitable,” added Puglia.