Global software company N-able (NYSE: NABL), renowned for its suite of remote monitoring, data protection as-a-service, and security solutions, has unveiled its MSP Horizons Report. This pioneering study, conducted in collaboration with channel analyst firm Canalys, would mark a significant milestone in understanding the trajectory and dynamics of the MSP industry.
The MSP Horizons Report, which would offer a wealth of quantitative data and qualitative insights from interviews with industry professionals, is released at a pivotal moment for the MSP sector. Leading the charge is N-able’s President and CEO John Pagliuca, together with Canalys Chief Analyst Jay McBain, whose goal is to provide MSPs with the information and resources they need to meet the possibilities and challenges of the near future. With the managed services industry about to undergo revolutionary shifts, this research may offer a guide and an inspiration for MSPs looking to take advantage of new trends to promote expansion and creativity.
The research, meticulously conducted from October to November 2023, gathered perspectives from 354 B2B channel partners across diverse regions including EMEA, North America, APAC, and Latin America. The findings reveal a sector that is not only growing robustly but is also optimistic about the future. A striking 97% of respondents reported revenue growth in managed services, with the global IT channel partners collectively generating an impressive $419 billion in revenue for the fiscal year 2023. This growth is underpinned by an ambitious outlook, with 65% of participants projecting double-digit growth in 2024 and a forecasted compound annual growth rate of 11% through to 2027.
The report highlights the critical growth areas and challenges facing MSPs. Key among these is the expansion of cybersecurity managed services, with more than 80% of respondents acknowledging significant growth in this domain. This surge is mirrored in the increasing importance of Managed Detection and Response (MDR), network security, endpoint security, and vulnerability scanning. The study also underscores the persistent relevance of on-premises solutions, with a majority embracing a hybrid model that integrates both cloud and on-premises infrastructures.
Embedded EDR, AI
Furthermore, the MSP Horizons Report sheds light on the evolving tech stack of MSPs. While the traditional Remote Monitoring and Management (RMM) remains a cornerstone of the MSP model, there is a growing demand for more integrations, such as embedded Endpoint Detection and Response (EDR) and other security functions. This is indicative of a broader trend towards a more unified approach to monitoring and management, reflecting the sector’s adaptability and resilience.
The adoption of artificial intelligence (AI) stands out as a pivotal trend, with 88% of respondents already utilizing AI as an embedded feature within their toolsets. The appetite for more embedded AI capabilities underscores the technology’s potential to revolutionize content generation, cybersecurity, backup, and data analytics within the MSP ecosystem.
As the MSP market continues to evolve, the MSP Horizons Report 2024 lays the groundwork for a future where MSPs are not just participants but drivers of technological innovation and business transformation, according to the report.
