Industry Maintains Servicing Pricing Levels Despite Growing Number
SAN MATEO, Calif.–(EMWPresswire)–Untangle today announced the results of the industry’s first Managed
Services Provider (MSP) Benchmark Study. The goal of the study was to
offer an objective set of business metrics to provide the MSP community
with insight into the range of MSP business models and performance.
Key focal points of the study included managed services pricing, scaling
and business model evolution. Over 200 MSPs nationwide participated in
the survey, conducted by Pacifica Group, an independent research and
marketing consultancy for the high tech industry.
“This study offers an interesting glimpse into
MSP trends,” said Joe Panettieri, editorial
director of MSPmentor, the ultimate guide to managed services. “The
MSP model is still emerging so it’s great for
MSPs to see where they stand amongst their peers.”
Key findings from the survey include:
The MSP model is growing more popular: While over two-thirds of
the survey respondents reported having been in the technology reseller
business for more than six years, nearly one-third began delivering
managed services within the last year. Further, respondents expressed a
clear desire to move away from selling break/fix services and towards
the MSP model over the next two years.
Automation is the key to MSP growth/scaling: MSPs can scale by
increasing employee headcount until they have around 25-50 customer
contracts or approximately 500 devices managed. Beyond this point, MSPs
need to accelerate investments in automation (i.e. monitoring &
management) and focus on process standardization to achieve the next
level of growth. Nevertheless, new MSPs take 3–5
years to establish themselves and new entrants should not over invest in
automation technology ahead of need.
MSPs keep small businesses up-to-date with the latest IT trends: Nearly
40% of respondents already offer VoIP services today, with another 27%
considering offering it within a year. 65% offer web content filtering
and that number is expected to jump to 84% within a year. MSPs are
continually enhancing and expanding their services offerings to better
serve their small business customers.
Prices have held steady despite a growing number of MSPs serving
small businesses: Although pricing models for each service
area vary widely, newer MSPs are not leading with discounts, suggesting
that prices are not commoditizing.
“Our MSP partners told us that they struggle
to define their initial pricing and service offerings,”
said Bob Walters, CEO of Untangle. “We hope
that the MSP Benchmark Study will help both established and aspiring
MSPs refine their business models and grow their customer bases.”
For all survey findings and a more detailed look at MSP pricing by
service area, the entire report can be viewed at www.untangle.com/mspstudy.
Via the Untangle MSP Partner Program, Managed Service Providers (MSPs)
can now offer Untangle’s network security
services to block spam, viruses, spyware, adware, and unwanted content
without incurring any upfront costs. Key elements of the program include
Hardware-as-a-Service (HaaS), flexible software licensing, and
interoperability with MSP enablers Kaseya, Level Platforms, and N-able.
For more information or to join the Untangle MSP Partner Program, please
visit www.untangle.com/MSP or
call (866) 233-2296. Untangle is located in San Mateo, California.
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