For the past 7-10 years we’ve been hearing that the MSP industry is going to be disrupted by Google and Microsoft cloud services. In fact, even a current customer came to our office the other day saying he is worried about the future of the industry yet he’s grown 25% YoY for the past 5 years (>$2MM revenue to start).
At this point I think it’s fair to say that the industry is healthy, growing, but also as a whole has a terrible paranoia about the future. Anecdotally we hear this constantly even as we meet hundreds of new MSPs entering the market each year who are looking to us for a data platform, or we meet the smartest MSPs who are dropping over 20% in EBITDA constantly every year with $5MM + in revenue.
Another way to look at it is how much M&A money is flowing into software vendors such as Autotask, N-Able, LogicNow, Kaseya, etc. Private Equity and acquisitions with great multiples means smart people are betting on MSPs growing and seemingly their bets have paid off as more investments keep on pouring in. This is a very encouraging sign on top of our anecdotal evidence with our personal experience.
All in all I think it goes back to technology support (in whatever form) for small business will always be needed as technology is ever changing. The only constant of technology is change. And as long as there are small to medium sized businesses then there will be need for MSPs. We may not be featured in TechCrunch but I believe many of us will take cash flow over hype any day of the week!
If you want to learn about how our customers are growing, request a demo with BrightGauge today. We help IT Services companies (MSPs) become more data driven with our powerful data platform. You’ll learn how we feel the right Dashboards, Custom Reporting, and Scorecards in one easy to use platform will help any company grow!