But given the high-profile infractions, why didn’t security sales increase that much?
In April, Channel Futures launched a benchmark survey to get a pulse on the industry’s major trends and opportunities during the first quarter of 2021. The MSP space experienced a dramatic change following the coronavirus pandemic. We wanted to assess how suppliers are doing now that the smoke has started to go away. The results of the survey gave us a good idea of the various aspects of how MSPs work, the challenges they face and the services they offer. In particular, we observed several trends around recurring revenue, cloud-related sales, and security-related sales.
Coming out of the pandemic, it is clear that some MSPs were still able to grow their businesses. All of this, despite known pitfalls, which include widespread talent shortages and inefficient remote monitoring and management (RMM) tools. Of course, there is also the constant threat of increasingly advanced cyberattacks. Looking to the future, given these findings, it appears that MSPs are in a unique position to thrive in economic shocks and generate value for customers.
|This marks the launch of Channel Futures ’MSP quarterly survey series. Watch this space for more details on the figures and what all this means for the larger MSP community.|
Our survey uncovered some of the key trends and affected the tumultuous year that was 2020. Below are four of the main research results obtained from the survey, along with the perspectives of industry experts.
We wanted to know how these smaller private companies in the channel work. So we asked people what the recurring revenue for the first quarter of 2021 was like compared to the quarter of the previous year. About one in eight (12%) respondents said their recurring income increased more than 20% in the first quarter, which gave an encouraging boost upward. About 27% said recurring revenue increased by at least 11%. This shows that a good part of the community has a pretty successful year.
We asked Jason Ingalls, founder and CEO, Information security Ingalls. for his opinion on what this means.
“Remembering that the workforce went to the WFH model during the first quarter of 2020, that makes me wonder if a) The first quarter was a big quarter in 2020 in terms of recurring revenue for many MSPs who handled applications from remote workers from many customers, and the first quarter of 2021 has shown an improvement over this rise as that the economy is heating up; ob) The first quarter of 2020 was relatively flat and the first quarter of 2021 reflected that, ”Ingalls said.
“It certainly indicates stability in an unstable twelve-month cycle. And in general, people indicated that it was going better than a year ago, “he added.
“Here I see a direct correlation with reliance on leveraging external resources to facilitate the changing landscape of technology departments,” said Chris Ichelson, CEO of 360 SOC. “Organizations are taking advantage of the channel more than ever in seeking guidance to address the ‘new normalcy.’
Where MSPs add providers
The sentiment among MSP professionals we surveyed pointed overwhelmingly to security. When we asked in which sectors MSPs added suppliers in the first quarter, more than a quarter (29%) cited backup and disaster recovery (BDR). Managed security also reached 29%, with cloud storage at 24%. Other notable mentions included …