Competition has topped the list of challenges facing MSPs, ahead of revenue growth, profitability and the acquisition of new customers, a new Datto Global State of the MSP Report reveals.
The report reveals that 29% of 1,800 MSPs worldwide surveyed rated ‘competition’ as their top concern, with revenue growth and profitability (28%) ranked as the second most pressing challenge.
The remaining 24% of those questioned said acquiring new customers and hiring new talent are their biggest obstacles.
Fred Voccola (pictured), Kaseya CEO, said: “For the second year in a row, the Datto Global State of the MSP Report shows that our partners are worried about the competition. This comes as no surprise.
“The pandemic led to an increase in need for IT services and produced savvy customers who like to shop around. MSPs have had to evolve to keep pace with the competition.”
This year’s study also discovered that break-fix revenue is also on the rise, with 35% of revenues generated by break-fix and project-based services, up 11% from the year before.
Voccola added: “This scenario validates something we’re hearing directly from customers on a daily basis. The traditional break-fix model is evolving, and it represents a gateway for MSPs to secure new business.”
