What: Datto Holding Corp. (“Datto”), the leading global provider of cloud-based software and security solutions purpose-built for delivery by managed service providers (MSPs), today announced the release of the fifth annual Global State of the MSP Report. Based on an independent survey of more than 1,800 MSPs worldwide, the report reflects how MSPs are evolving as their small and medium business (SMB) clients fully transition to the cloud and prioritize cyber resilience.
The report highlights the critical importance of cybersecurity to today’s MSP, with 99% of respondents offering managed security services, a significant increase from the previous year’s survey. It also highlights the cloud migration trend continuing from last year’s survey, with half of the respondents saying their clients have 50 to 75% of workloads in the cloud and almost two-fifths saying they have 25 to 50% in the cloud. Both data points signal the emergence of the next generation of MSPs that prioritize a scalable and resilient IT stack.
“Businesses have had to rethink operations and explore new avenues for managed services. Over the last year and a half, MSPs were the unsung heroes for SMBs, enabling them to run their business while the MSPs themselves faced many of the same challenges of remote/hybrid work and economic uncertainty. This accelerated MSP and SMB digital transformation. This research reflects that MSPs are focused on cloud migration, increased collaboration, and investment in security solutions. With this new mindset, MSPs can support SMBs for the transformation to come.”
Increased Competition Now a Top Challenge for MSPs
With IT more important than ever for SMBs, MSPs are essential to business operations. This increased reliance and subsequent growth has also introduced new challenges. The most commonly reported challenge for MSPs was competition (34%), followed by revenue growth (27%), profitability (24%), and acquiring new customers (23%). This is the first time in the report’s history that competition topped the list of MSP challenges, highlighting the maturing of the market and increasing need for MSPs to offer differentiated and relevant solutions.
MSPs Target Need for Improved Security Solutions and Shift to the Cloud
Given the steady increase in ransomware and cyber attacks over the past few years, SMBs need security expertise now more than ever. Still, hiring in-house security specialists is outside the budget of many SMBs.
- A third of MSP respondents in all markets believe security solutions present significant opportunities.
- Ninety-nine percent of responding MSPs offer managed security services, compared to only 75% last year, further showcasing the increased attention MSPs put on outsourced security solutions.
- The Center for Internet Security (CIS) Controls topped the list of security and compliance frameworks that MSPs are using this year, highlighting a shift towards a cyber resilience mentality among MSPs.
Nearly all survey respondents claimed that clients had shifted workloads to SaaS (software-as-a-service) applications and the public or private cloud.
- Half of the respondents said their clients have 50 to 75% of workloads in the cloud and almost two-fifths said they have 25 to 50% in the cloud.
- Of the workloads already in the cloud, MSPs noted that databases, email, and application servers were the most common.
- The most popular cloud offerings among MSPs include:
- Cloud-based infrastructure design and management - 97%
- Office productivity software services (Microsoft 365, Google Workspace, etc.) - 93%
- Business continuity and disaster recovery (BCDR) - 88%
As the world’s leading provider of cloud-based software and security solutions purpose-built for delivery by managed service providers (MSPs), Datto believes there is no limit to what small and medium businesses (SMBs) can achieve with the right technology. Datto’s proven Unified Continuity, Networking, and Business Management solutions drive cyber resilience, efficiency, and growth for MSPs. Delivered via an integrated platform, Datto’s solutions help its global ecosystem of MSP partners serve over one million businesses around the world. From proactive dynamic detection and prevention to fast, flexible recovery from cyber incidents, Datto’s solutions defend against costly downtime and data loss in servers, virtual machines, cloud applications, or anywhere data resides. Since its founding in 2007, Datto has won numerous awards for its product excellence, superior technical support, rapid growth, and for fostering an outstanding workplace. With headquarters in Norwalk, Connecticut, Datto has global offices in Australia, Canada, China, Denmark, Germany, Israel, the Netherlands, Singapore, and the United Kingdom.