By Ashley Ogilvie, IT Glue
What does it mean to be a successful MSP? In the current landscape, there’s really no final destination for this. The MSP business as a whole is in a constant state of change – of evolution. What once made an MSP profitable, is no longer sufficient. Rather than reaching a final destination, success for MSPs is now characterized by their ability to keep up with the change, or better yet, stay ahead of it.
So what can you do to ensure your MSP is in a good position to adapt to these changes? We put together some thoughts.
How is the industry changing?
The industry is simultaneously growing and consolidating. Established players are seeking growth by acquisition, which has created a white-hot M&A market. But barriers to new entry remain pretty low, so there’s always somebody leaving their company to go solo with their own shop. The result? Competition that is becoming increasingly intense.
The other major trend we have to talk about is maturation. Break-fix shops and VARs are adding managed services, which the IT Glue Global MSP Benchmark Report highlights as correlating with profitability and revenue growth. Inchoate MSPs are professionalizing their operations with better software, professional documentation, and attention to process.
Intense competition and more mature competitors? That’s a tougher environment for anybody who is not ready to compete. Here’s some of what you’ll need to start thinking about.