In last month’s blog, I outlined how rapidly changing SMB client requirements are reshaping the MSP Market. These demands to broaden MSPs’ service portfolio, combined with downward pricing pressure from increased competition, are squeezing operating margins and reducing the overall profitability of an MSP’s business.
The MSP world is changing fast, with new technologies, new competition and ever-changing market forces, pushing MSPs towards their next phase of evolution. Kaseya calls this next phase MSP 2.0, since it is a natural extension of the MSP 1.0 phase that emerged after the Break/Fix era.
New MSP Growth Opportunities and New Challenges
The new MSP 2.0 environment creates both new growth opportunities and new challenges for MSPs.
Overall, the rate of consumption of MSP services by SMBs is expected to grow annually over 45% year over year for the next several years, representing a global market opportunity approaching $75 BILLION USD per year by 2020.
However, while the opportunities are clear and overwhelming for the MSP market as a whole, individual MSPs must each adapt to these changing market dynamics or risk falling behind.