SolarWinds Report Shows Managed Services Remain Healthy and Profitable—Findings Reveal Key Opportunities for Growth, Including Advanced Security, Automation, and Business Operations
DURHAM, N.C.--(BUSINESS WIRE)--Feb 10, 2020--
SolarWinds (NYSE:SWI), a leading provider of powerful and affordable IT management software, today released the findings of its “2019 Trends in Managed Services” report, showing the health of managed services and the forces shaping the market across North America and Europe.
SolarWinds MSP partners with The 2112 Group to create the annual report from findings based on data from its benchmarking tool, MSP Pulse, which provides deep insight into potential growth opportunities for IT providers and where they can excel, areas for improvement, and can also help guide how they invest in their business. The comprehensive reports show comparisons on revenue, profit, service selection, sales capacity, customer engagement, and growth potential.
“Our research has revealed that 97% of respondents offer some form of managed services—which is a clear demonstration of the managed services transformation remaking the technology channel. It’s safe to say the state of managed services is strong,” said John Pagliuca, president of SolarWinds MSP. “This latest research also underscored the major growth opportunities we’re already looking to help our MSPs leverage including automation, security, and operations. With our customer success-focused initiatives like MSP Pulse, the MSP Institute, and Empower MSP, we’re supporting partners with much more than technology. We’re working to fuel the success of our MSPs in 2020 and beyond. The future looks bright for those who want to expand their comfort zone, and we’re here to help them do just that.”
The results show that MSPs are comfortable with the security basics such as antivirus, backup, and firewalls:
However, MSPs have room for growth in some of the more advanced security solutions and offerings, as respondents were less confident in the more complex controls:
The results also showed MSPs are starting to increase the use of automation to handle day-to-day tasks such as patch management and backup, but don’t feel comfortable with automating the advanced tasks:
In the 2018 report, MSPs were losing customers almost as fast as they gained them, but 2019 showed an improvement in customer retention. Two of the top three reasons for losing customers stemmed from the customer rather than the service provider:
Another key finding showed core business operations are still amongst the biggest growth obstacles for MSPs including lack of resources/time, sales, and marketing:
Many providers claim a lack of sales and marketing expertise is a major anchor on their growth—hiring specialized staff could help close the gap or training for existing employees. The SolarWinds MSP Institute, a learning portal within the SolarWinds Customer Success Center, gives SolarWinds partners access to a variety of courses, including sales and marketing tracks, to help coach users in the management and growth of their business, and provides go-to-market strategies and advice to help educate on these issues.
“We’re so pleased to be partnering with SolarWinds MSP again on the annual Trends in Managed Services report,” stated Larry Walsh, CEO of The 2112 Group. “It gives MSPs an opportunity to see where the IT channel currently stands, where the opportunities are for growth and where they could improve as it pinpoints the crucial trends shaping the managed services market.”
SolarWinds (NYSE:SWI) is a leading provider of powerful and affordable IT management software. Our products give organizations worldwide—regardless of type, size, or complexity—the power to monitor and manage their IT services, infrastructures, and applications; whether on-premises, in the cloud, or via hybrid models. We continuously engage with technology professionals—IT service and operations professionals, DevOps professionals, and managed services providers (MSPs)—to understand the challenges they face in maintaining high-performing and highly available IT infrastructures and applications. The insights we gain from them, in places like our THWACK ® community, allow us to solve well-understood IT management challenges in the ways technology professionals want them solved. Our focus on the user and commitment to excellence in end-to-end hybrid IT management has established SolarWinds as a worldwide leader in solutions for network and IT service management, application performance, and managed services. Targeted for MSPs, the SolarWinds MSP product portfolio delivers broad, scalable IT service management solutions that integrate layered security, collective intelligence, and smart automation. Our products are designed to enable MSPs to provide highly-effective outsourced IT services for their SMB end-customers and more efficiently manage their own businesses. Learn more today at www.solarwindsmsp.com.
The SolarWinds, SolarWinds & Design, Orion, and THWACK trademarks are the exclusive property of SolarWinds Worldwide, LLC or its affiliates, are registered with the U.S. Patent and Trademark Office, and may be registered or pending registration in other countries. All other SolarWinds trademarks, service marks, and logos may be common law marks or are registered or pending registration. All other trademarks mentioned herein are used for identification purposes only and are trademarks of (and may be registered trademarks of) their respective companies.
© 2020 SolarWinds Worldwide, LLC. All rights reserved.
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CONTACT: Karla Walls
KEYWORD: UNITED STATES NORTH AMERICA NORTH CAROLINA
INDUSTRY KEYWORD: SOFTWARE TECHNOLOGY DATA MANAGEMENT SECURITY
SOURCE: SolarWinds Worldwide, LLC.
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PUB: 02/10/2020 06:30 AM/DISC: 02/10/2020 06:30 AM