2017 MSP Predictions: ChannelE2E’s Take

2017 Road

ChannelE2E covers the managed services space like a glove. Its writers talks to top MSP vendor executives and MSPs of all shapes and sizes most every day.

So when the influential web site talks, we listen.

Recently ChannelE2E polished up its trusty crystal ball and peered into the future – and came up with a set of predictions for MSPs in 2017. Make sure to check out the full article, but we were struck by these particular predictions.

Size Matters – Especially If You’re Growing

ChannelE2E found two forecasts showing the MSP market far outpacing the overall economy. The most aggressive is a prediction from Markets and Markets, which posits that the MSP space will move from where it was in 2014, $107.17 billion, to $193.34 billion in 2019. If you haven’t already broken out your calculator, that’s an impressive 12.5% Compound Annual Growth Rate (CAGR).

A large region for growth will be Asia-Pacific (APAC), but North America will create more revenue than other regions studied.

A slightly less aggressive but still impressive forecast comes from Mordor Intelligence which sees the global managed services market growing from $128.19 billion in 2014 to $229.59 billion in 2020. The math says that’s a sweet 10.20% CAGR.

Managed Cloud Services on the Rise

We all know that the cloud is the next MSP frontier. For many providers, that means selling cloud backup, managing Office 365, or keeping cloud services secure. But many MSPs are now actually managing Amazon Web Services (AWS) and Microsoft Azure workloads.

“First mover MSP advantage on Microsoft Azure and Amazon Web Services is now over. Hundreds of MSPs now manage and monetize workloads on AWS. In case you missed the first-mover wave, here are 50 MSPs that jumped early into the AWS market,” the web site argues.

Managing Multiple Cloud Services also on the Rise

We just talked about MSPs managing AWS and Azure. But ChannelE2E believes another new wave is about to break ― managing a broad array of cloud services. “Much in the way that traditional MSPs must manage Windows, Linux and Mac OS devices, a shift toward multi-cloud management (across Azure and AWS) will accelerate,” the web site believes.

But this new area comes with some uncertainty. “Will MSPs extend beyond AWS and Azure toward Google Cloud Platform, Oracle Cloud and IBM Cloud? In most cases, most of those opportunities will involve specific opportunities — such as big data analytics on Google Cloud Platform…” ChannelE2E concludes.

MSPs Soft on Niches?

Niche markets have always been a two-sided coin. On the one hand, there is less competition and you can become THE expert in these markets. On the other, niches are smaller than more general market opportunities. ChannelE2E sees the niche opportunity, but doesn’t see MSPs stampeding to exploit them. “Some MSPs will push into DevOps managed services; Docker and container services; and managed services for Hadoop and other big data platforms. However, our enthusiasm for those MSP opportunities has cooled off a bit in recent months,” the site says. “While large corporations have largely outlined DevOps, container and big data strategies, most MSPs have yet to figure what moves — if any — to make in those markets.”

MSPs Push for New Generation of Simplified Tools

MSPs have solutions today with rich feature sets. However as the iPad and smart phones demonstrated, simplicity and usability can be more important that a bevy of functions. “For the past decade or so, MSP-centric software offerings like PSA (professional services automation), RMM (remote monitoring and management), NOC (network operations center), BDR (backup and disaster recovery) and endpoint security celebrated integrations across software platforms,” ChannelE2E explains. There is now a new need. “MSPs will demand simplified management tools that deliver faster time to deployment and monetization. Fewer mouse clicks and ease-to-activation will rule the day.”

Kaseya and MSP Futures

Kaseya also looks to the future and has its ears close to its MSP customers. As a result, we have a number of thoughtful resources to help you bring your MSP business into the future.

There is a difference between highly successful MSPs and those that don’t achieve their potential. Discover the secrets of MSP growth and prosperity with our eBook “Building a Bionic MSP Practice: Best Practices from the Highest Growth MSPs in the World.”

MSP 2.0 is a way that many successful MSPs frame their businesses. Learn more about the changing market dynamics that are driving the MSP 2.0 evolution, and how you can overcome the challenges and take advantage of the exploding opportunities by downloading your copy of Your Roadmap in an MSP 2.0 World.

Kaseya IT Complete: Industry’s First and Only Unified MSP Growth Platform

We also invite you to learn more about Kaseya IT Complete, which was architected and purpose built to meet the evolving needs of MSPs in this second phase of their evolution.

The Kaseya IT Complete platform is made up to two key areas:

  • Solutions to help you RUN your business
  • Solutions to help you generate revenue and GROW your business

Learn more about Kaseya IT Complete and how it can enable you to grow your MSP business.

Posted by Doug Barney
Doug Barney was the founding editor of Redmond Magazine, Redmond Channel Partner, Redmond Developer News and Virtualization Review. Doug also served as Executive Editor of Network World, Editor in Chief of AmigaWorld, and Editor in Chief of Network Computing.
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