Security Services are Ripe for Explosive Growth in 2016

Online Data Security Concept Illustration with Padlock Icons, Cyber Background and Circuit Board Elements. Internet Security Technologies.

If you’re not thinking about expanding your Security services, you should be.  At least that’s the news from Kaseya’s 5th Annual Global MSP Pricing Survey*.

‘Heightened security risks’ is the top IT problem or service MSP respondents expect their clients to face in 2016.  And it won by a mile, selected by over a quarter of all respondents and receiving  40% more votes than the second-highest selection. This result isn’t a surprise given the unremitting flow of news on breaches and hacks.

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Adequately addressing security risks requires a many-pronged approach, including services such as Patching and Updates, Audit and Discovery, Desktop Security, and Identity and Access Management (IAM).

While almost 90% of respondents offer Patching and Updates, there is still a lot of room for growth for the other three services, with Desktop Security, Audit and Discovery and IAM being offered by 72%, 64%, and 34% of all respondents, respectively.  If you break respondents down into higher-growth MSPs (those reporting three-year average annual monthly recurring revenue (MRR) growth over 10%) and lower-growth MSPs (those three-year average annual (MRR) growth 10% or less), you see that higher-growth MSPs are more likely to offer Audit and Discovery and IAM than their lower-growth peers.  However, not by enough to eliminate the market opportunity.

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Why the discrepancy between the perceived need and the actual rate of services offered? Perhaps because less than half of respondents expect pricing for these services to rise in 2016.Clearly MSPs perceive a disconnect between what their clients need and their clients’ willingness to invest in Security.  While this sounds like a problem, it’s really an opportunity for MSPs focused on growth in 2016.  Now is the time to start educating clients and prospects on how various service offerings working in concert can dramatically lower security risks for a company of any size.

The trick is to find a technology solution (or set of solutions) that allow MSPs to offer the functionality and protection their clients need, but in a way that easily integrates into their ongoing service engagements and is cost effective.

*The 2016 Kaseya Global MSP Survey results include responses from both Kaseya MSP customers and the market at large. In this year’s survey, we gathered more details from MSPs on the existing and emerging services they offer, their current service pricing and future pricing expectations, and key challenges their customers face. The findings are gathered from owners and operators of nearly 400 MSP firms of all sizes, spread across more than 30 countries.   Get your free copy of the full report and all key findings today.

 

**Originally posted on MSPMentor.

 

miguellopez

Joining Kaseya in 2012, Miguel Lopez brings over 20 years of experience to his role as SVP, Managed Service Providers (MSPs). In this position, he consults daily with MSPs to help them solve their clients’ business problems with technology solutions. Prior to joining Kaseya, Miguel served as the director of consulting services for All Covered, a nationwide technology services company that is a division of Konica Minolta Business Solutions USA Inc. In 2008, All Covered acquired NetCor Technologies, a leading MSP that Miguel founded and managed since 1997. NetCor specialized in serving highly regulated industries such as healthcare, CPAs, law firms and retail companies.

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