VANCOUVER, BC — June 15, 2020 — /BackupReview.info/ — IT Glue™, a Kaseya company and industry standard for IT documentation, today released its third annual Global MSP Benchmark Report which showed a dramatic shift in the managed services provider (MSP) space following the coronavirus pandemic.
IT Glue initially surveyed more than 1,500 MSP professionals in February 2020 about their technology stacks, headcounts, operations and more. However, after the global COVID-19 pandemic hit in mid-March, IT Glue followed up with a survey to MSP professionals in May 2020 to identify trends that emerged as a result, receiving over 500 responses. Though the May 2020 data found that a majority (74%) of MSPs are concerned about the impact of potentially a second quarantine in Fall 2020, both surveys revealed several existing opportunities for MSPs to drive value for customers as businesses reopen in the second half of the year.
“The pandemic has created an unprecedented landscape for all businesses,” said Nadir Merchant, general manager of IT Glue. “Our initial Global MSP Benchmark survey in February provided an overview of sentiment among MSP professionals, but once the world changed almost overnight, MSPs needed data-driven guidance on how to adapt. We’re proud to release our 2020 Global MSP Benchmark Report today to highlight both pre-coronavirus trends that continue to persist today and opportunities for MSPs to grow during and after this pandemic.”
The Coronavirus Impact on MSP Priorities
Coronavirus has impacted every organization worldwide, including MSPs. According to the IT Glue Global MSP Benchmark follow-up survey in May 2020, around half (51%) of MSPs saw monthly revenue decreases as a result of the coronavirus shutdown. Additionally, more than a quarter (29%) saw their accounts receivable increase, indicating more clients could not meet contractual deadlines to pay for services.
Because of this drastic shift, many MSP priorities changed during the first two months of shutdown. In the initial February survey prior to the pandemic, the top concerns of MSPs were a lack of adequate time to complete work (54%) and an inability to find good technical employees (53%), followed closely by changing technologies (32%) and a lack of information sharing (27%).
However, less than 20% of respondents to the May follow-up survey marked these as top concerns following the start of the pandemic, replacing them instead with concerns for cybersecurity threats, customer churn, price pressure and a second lockdown. Concern for cybersecurity saw the greatest change, jumping from 27% in the February survey to more than 50% in May, likely fueled by an unparalleled increase in cyberattacks during the pandemic.
Finally, although MSP interest in mergers and acquisitions had already been declining before 2020, the pandemic marked the most profound shift in M&A sentiment in recent years. In the February survey prior to the pandemic, more than half (52%) of MSPs indicated they were at least somewhat interested in acquiring or merging with another MSP, down from 62% in IT Glue’s 2018 survey. Fast forward to IT Glue’s May follow-up survey, and only 37% said they were considering M&A activity following the move to remote work under quarantine. Though M&As are likely to slow down as a result of the pandemic, market consolidation will continue – however, the pace of which remains to be seen.
“While no business is fully recession-proof, MSPs are uniquely positioned to drive value to customers and thrive during economic downturns,” said Merchant. “This year’s survey shows that the shift in priorities to a now greater concern for cybersecurity, compliance and customer retention means MSPs have an opportunity to serve as a guide to their small business customers. They are the epicenter for delivering critical IT services that not only help to maintain the viability of many companies during times of uncertainty and volatility, but will enable businesses to emerge stronger from these trying times.”
Key Takeaways for MSPs
Although COVID-19 has changed business and IT irrevocably, IT Glue’s February survey results highlight three key takeaways for MSPs as they continue to navigate through unpredictable times:
For more details and a comprehensive analysis of the findings, download the IT Glue 2020 Global Benchmark Survey here: https://itglue.com/resource/global-benchmark-2020/
About IT Glue
IT Glue, a Kaseya company, is the leading provider of simple and secure IT documentation for IT professionals around the globe. Our solution empowers IT professionals to document applications, devices, passwords and other IT assets centrally and in a standardized manner, enabling critical information to be stored securely and easily accessed by those who need it, whenever they need it. Based in Vancouver, Canada, IT Glue currently has over 8,500 partners in 50+ countries, serving over 150,000 users and 500,000 businesses globally. For more information, visit: https://www.itglue.com/ and connect on LinkedIn and Twitter.
About Kaseya
Kaseya® is the leading provider of complete IT Infrastructure Management Solutions for managed service providers (MSPs) and internal IT organizations. Through its open platform and customer-centric approach, Kaseya delivers best in breed technologies that allow organizations to efficiently manage, secure, and backup IT. Kaseya IT Complete is the most comprehensive, integrated IT management platform comprised of industry-leading solutions from Kaseya, Unitrends, Rapidfire Tools, Spanning Cloud Apps, IT Glue and ID Agent. The platform empowers businesses to: command all of IT centrally; easily manage remote and distributed environments; simplify backup and disaster recovery; safeguard against cybersecurity attacks; effectively manage compliance and network assets; streamline IT documentation, and automate across IT management functions. Headquartered in Dublin, Ireland, Kaseya is privately held with a presence in over 20 countries. To learn more, visit www.kaseya.com
Contact:
Maddy Birtles
Account Executive
t +44 (0) 1252 727313 Ext. 407
m +44 (0) 7523359736
e maddyb@whiteoaks.co.uk
Source: Kaseya
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