Today’s IT channel business models are being reformulated around managed services, such as strategic planning and customer relationships. But the managed service provider (MSP) market is quickly becoming commoditized, as many competitors enter the space, prices decline, and profits plummet. How will channel businesses recoup their losses and reformulate viable business plans around MSP, and when will these services become profitable?

CompTIA’s Fifth Annual Trends in Managed Services report provides a frank and eye-opening perspective on the competitive state of the U.S. MSP market. It features results from a survey of some 400 American MSPs, plus data gathered from MSP practices over the past three years. Here’s some of what you’ll discover:

  • MSPs are small but growing. Nearly three in ten IT channel firms rank managed services as key to their revenue strategy. Yet on average, MSP lines of business accrue only $1 million in annual revenue.
  • Retention is a problem. Some four channel firms in five report that at least one MSP professional has left their employ to join an IT solution provider.
  • The cloud is at the center. An almost immeasurably low percentage of IT firms say cloud services play no role at all in their MSP service.

The way forward for channel firms seeking to provide competitive managed services for their customers, is not altogether clear. But a comprehensive mapping of the state of the industry will help you compose a clear strategy. Download this MSP trends guide now and begin solving this riddle for your organization.

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