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Key Takeaways from Datto’s 2019 State of the MSP Report

Each year, Datto surveys managed service providers (MSPs) around the world to learn about their day-to-day lives, businesses, and IT Channel predictions. In 2019, we had over 1600+ of our partners respond to our survey. This has resulted in a wealth of statistics covering everything from the technology MSPs are using and business challenges they’re facing, to where they get their news and how many industry events they attend annually.

Author: Datto VP of Business Development Rob Rae

You’ll want to dig into the full report for more details on all of the items we mention below, and so much more. There are far too many statistics and insights to share in one article, but here are some highlights from the 2019 State of the MSP Report:

  • Today’s MSPs are between the ages of 30-49 and report their organizations have been in business for 16+ years. Nearly 100% of MSPs surveyed say that now is as good a time as ever to be in their industry.
  • The majority of MSPs report annual revenue between $1M-$5M. Over 80% of MSPs report driving a portion of their earnings from recurring services.
  • 55% of MSPs report having between 1-100 clients. 89% of MSPs also report making at least one client site visit per week. In the next 12 months, more than half of MSPs predict adding between 1-10 new clients.
  • The majority of MSPs are accessing Facebook and LinkedIn on a daily basis and list Reddit, Spiceworks, and MSPAlliance as the top three online communities they’re hanging out on.
  • Marketing and sales continue to be the top two pain points of global MSPs, followed by work/life balance, revenue growth, and ransomware/cybersecurity.
  • Nearly half of MSPs report recommending Dell servers to clients, followed by
    one quarter who recommend HPE. 44% of MSPs report utilizing VMware as their virtualization software, closely followed by 43% who report using Microsoft Hyper-V.
  • The majority of MSPs plan to hire between 1-5 employees in the next 12 months: most predict the ease of hiring to be about the same compared to last year.
  • The top 3 most critical security offerings according to MSPs are anti-virus, advanced firewall, and remote monitoring and management (RMM) solutions.
  • MSPs report RMM, cloud storage management, productivity software, business continuity and disaster recovery (BCDR), and professional services automation (PSA) among the solutions that most positively impacted them the most last year.

Get the Report: To learn more, check out Datto’s entire 2019 State of the MSP Report here.


Rob Rae is vice president of business development at Datto Inc. Read more Datto blogs here.

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1 Comment

Comment

    Jeff Weinman:

    Some Comments:

    From these two highlights:
    1. Today’s MSPs…have been in business for 16+ years.
    2. The majority of MSPs report annual revenue between $1M-$5M.

    You can derive this one:
    3. Marketing and sales continue to be the top two pain points of global MSP…

    Comment: After 16 years, businesses, in general should be bigger than $1M-$5M. I think this identifies the biggest hurdle for entrepreneurs in this industry: Switching from a technician to a sales driven business leader with a growth mindset. Bring on Gary Pica, Robin Robins, TBG, HTG, Traction, Walk Away Wealthy, etc. combined with a commitment to live in the “uncomfortable” (meaning outside of your comfort zone in tech only).

    Highlight: The majority of MSPs are accessing Facebook and LinkedIn on a daily basis and list Reddit, Spiceworks, and MSPAlliance as the top three online communities they’re hanging out on.

    Comment: Um…they are missing a BIG one: CHANNELe2e.

    Highlight: The top 3 most critical security offerings according to MSPs are anti-virus, advanced firewall, and remote monitoring and management (RMM) solutions.

    Comment: Hey Rob: Are you listening? SECURITY! I bet you guys have some things up your sleeve such as acquisitions combined with some creative technical work (Shhh, right?). Looking forward to it if so.

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