Managing complexity in the cybersecurity stack will be among the challenges for managed service providers going into 2024. There are so many point solutions from so many vendors, and end user companies are relying on their MSPs for protection.
But the complexity of the cybersecurity stack is not the only challenge ahead for MSPs. Managed service providers have weathered a year of inflation, higher prices, and other industry changes, too.
That’s according to PSA/RMM platform company Syncro’s CEO Emily Glass who recently spoke with ChannelE2E about what’s on her company’s technology roadmap for next year, what she’s hearing from MSPs, the results of her company’s recent pricing survey of MSPs and more.
Cybersecurity and MSPs
Cybersecurity continues to be at top of mind for MSPs and for Syncro, Glass told ChannelE2E.
The threat landscape is always changing. Plus, MSPs have the challenge of identifying the right vendors, managing those vendors, and then selling the solution to the end customer company.
Syncro operates a marketplace-type ecosystem to help MSPs navigate the many options they have for cybersecurity. The company has forged partnerships with vendors including Acronis and Proofpoint. Syncro has also introduced a number of innovations to its platform in 2023 to help its MSP partners with their cybersecurity such as an IP Allow list that lets MSPs lock down their logins to certain IP addresses. Syncro also offers single sign on capabilities. The company recently achieved SOC 2 compliance.
Looking ahead for 2024, Glass said that Syncro plans to introduce innovations around simplifying security solutions for MSPs. As the threat landscape has shaped, more solutions have come to market to protect against them. But that’s led to another problem.
“The solutions that are emerging to deal with cybersecurity threats are very fractured,” Glass said. “Syncro is looking to unite them, similar to what we did for PSA/RMM.”
Syncro offers a unified PSA (professional services automation) and RMM (remote monitoring and management) platform. The unified approach to these two core MSP business functions simplifies the operation of a managed services business.
“We believe that security is a third pillar of the platform,” Glass said. “You shouldn’t have to piece together separate solutions – especially for MSPs that are just starting out. It’s too hard for them to go shopping and investigate and piece together all these things, especially with minimums of contracts and all the complexity there. We want to make that really really simple for them.”
Glass promised further updates on this Syncro initiative in Q1.
MSP Pricing: A Syncro Survey
Syncro also recently surveyed 414 managed service providers and IT pros across the U.S. to learn about pricing strategies and trends in the market. Here are some of the findings of the survey:
- More than half of the organizations surveyed made more than $10M in revenue in 2022 and nearly half of respondents said they anticipated their revenue would show additional growth in 2023.
- Organizations that offered more than one pricing plan were the ones that showed signs of growth and scale.
- Inflation, rising labor costs, and the general cost of doing business, all contributed to MSPs taking action to raise prices in 2022.
How MSPs Set Prices
But the approach to pricing at MSP organizations doesn’t always follow a set process. Only 7% of MSPs said they used research/analysis, strategy and planning when it came to setting pricing. Another 7% said it’s based on current costs and budget. Another 13% said it’s based on staff/committee/executive decisions. A full 14% said it’s based on market trends and competition. A full 26% said they didn’t know how prices were set. And 33% listed “other”.
That said, 63% of MSPs have raised prices in the last 12 months, according to the Syncro survey.
While the pricing survey did not address MSP profitability, for newer MSPs that continues to be an ongoing issue. Glass said that’s why Syncro built into its platforms the kinds of tools that enable MSPs to view profitability by customer and by technician. Those are the kinds of insights that can help MSPs get on the right track with their business operations.