Datto’s European State of the MSP Report€¦ · MSPs GET SOCIAL Takeaway The majority of IT...
Transcript of Datto’s European State of the MSP Report€¦ · MSPs GET SOCIAL Takeaway The majority of IT...
1 | datto.com
REPORT
Datto’s European State of the MSP Report Follow us on Twitter: @DattoEMEA Subscribe to our blog: www.datto.com/uk/blog
2018 MSP Challenges and Trends, Stat-by-Stat Datto surveyed nearly 400 European managed service providers (MSPs) worldwide all about their day-to-day lives. The result: a wealth of statistics all about the state of today’s MSPs, including everything from basic demographics and media consumption preferences to business goals and challenges.
With Datto’s European State of the MSP Report, we aim to provide an accurate profile of managed services today, the good, the bad, and the ugly. By sharing these insights with the channel, we aim to spread awareness about the struggles of today’s IT service providers and offer the community a variety of resources and solutions for mitigating these common pain points.
3 | datto.comA21-29 - 12% A30-39 - 30% A45-54 - 32% A55-64 - 19% A65-74 - 6%
A21-2914%
A30-3932%
A40-4934%
A50-5917%
A60-692%
A21-29 - 14%
A30-39 - 32%
A40-49 - 34%
A50-59 - 17%
A60-69 - 2%
DEMOGRAPHICS OF MSPs
SEX
AGE
EDUCATION
Takeaway The average MSP is male, college-educated, and between the ages of 40 and 49. No major surprises there.
Male
93%Female
6%
4 Year College
35%
Graduate School
24%
2 Year College
6%
High School
15%
3 Year College
7%
1 Year College
4%
Some Graduate School
6%
A21-29 - 12% A30-39 - 30% A45-54 - 32% A55-64 - 19% A65-74 - 6%
A21-2914%
A30-3932%
A40-4934%
A50-5917%
A60-692%
A21-29 - 14%
A30-39 - 32%
A40-49 - 34%
A50-59 - 17%
A60-69 - 2%
4 | datto.com
THE BUSINESS OF MANAGED SERVICES
CLIENTELE
ANNUAL REVENUE *Survey respondents answered in USD: $1 = £0.76 $1= €0.86
Takeaway Half of MSPs serve more than 100 clients, most offer 1 year contracts, and more than half still offer break-fix services in some shape or form.
1-100 Clients
50%101-200 Clients
23%
1 year
49%5 years
2%
Other
31%
3 years
18%
201-300 Clients
8%301-400 Clients
4%401-500 Clients
3%501+ Clients
12%
STANDARD CONTRACT LENGTH
$1 - $100,000
10%
$100,001 -$500,000
26% $500,001 - $1M
15%
$1M - $5M
37%
$5M-$10M
7% $10M-$20M
2%$30M-$40M
2%$50M+
1%
STILL OFFERING BREAK-FIX SERVICES?
78% OF MSPs SAID, “YES.”
4 | datto.com 5 | datto.com
Healthcare33%
SPECIALIZED SERVICES
Takeaway More than 50% of MSPs specialise services for the Manufacturing industry.
YOU ALSO MIGHT BE INTERESTED IN:
Lead Generation Made MSPeasy
TOP INDUSTRIES TARGETED BY MSPS
“Focusing on a specific vertical can be efficient from an operations standpoint because you’re providing similar services for all or most of your clients.” -Dale Shulmistra, Invenio IT
Manufacturing55%
Finance49%
Legal 42%
Non-profits 37%
Construction 40%
Education34%
Real Estate29%Government
23%
Startups28%
6 | datto.com
GO-TO MSP BUSINESS RESOURCES
TakeawayTo keep on top of industry trends, MSPs subscribe to a variety of channel publications, including The Channel Co, Channel Futures, and Channel Partners.
“I start each day reading tech, marketing, and business articles to keep up with everything. I pass the good articles to my staff to keep them informed.” -Dale Shulmistra, Invenio IT
2. Referral (colleague) 19%
3. Industry Forum 11%
4. Other 5%
65%
Top Channel Sites for Staying Up-to-Date on Industry Trends:
Datto Downtime Blog
Other favourites:
Tweakers,
The Register,
CompTIA
Top Resources for Evaluating a New Product/Service:
1.
6 | datto.com 7 | datto.com
MSPs AND THE DAILY COMMUTE
HOW DO YOU COMMUTE TO WORK?
Personal Vehicle
77%
Work from Home
7%
Bike/Walk
5%
Train/Bus
7%
Other 5%
Takeaway The majority of MSPs experience a short commute (less than 30 minutes) and rely on their own vehicles to get them to and from the office.
HOW LONG IS YOUR DAILY WORK COMMUTE (ONE-WAY)?
<30 mins 69%
30-45 mins
17%
45min-1 hour 8%
1 hour+ 5%
<30 mins: 67% 30-45 mins: 20% 45 mins - 1 Hour: 8% 1 Hour +: 5%
8 | datto.com
TOP 10 MSP CHALLENGES IN 2018
Takeaway In 2018, the majority of managed service providers are struggling with Marketing and Sales efforts.
Marketing/Sales
47%
Staffing/Training
37%
Growing Pains
18%
Ransomware/cyber security
33%
Internal Operations
25%
Pricing Services
17%
Customer Service
31%
Changing Tech Landscape
16%
Vendor/Tech Issues
9%
Selling BCDR*
8%
*Business Continuity & Disaster Recovery (BCDR)
8 | datto.com 9 | datto.com
MSPs AND SCREEN TIME
TakeawayThe channel has spoken. For the majority of MSPs, the force is very much with Star Wars.
MSPS ARE BINGING: STAR WARS OR STAR TREK?
Star Wars 66%
Star Trek 34%
Game of Thrones
Stranger Things
Black Mirror
Peaky Blinders
</>Mr. Robot Vikings Blacklist
The Crown
Walking Dead
Big Bang Theory
DesignatedSurvivor
Blade Runner
10 | datto.com
MSPs GET SOCIAL
TakeawayThe majority of IT service providers are active on social networks every single day (Facebook + LinkedIn especially). But when it comes to socialising with industry peers, Reddit is the go-to forum of the channel.
Number of Hours Spent (Per Day) on Social Media:
1. Reddit 2. Spiceworks 3. Autotask4. CompTIA5. Experts Exchange
6. Facebook Groups7. Microsoft Technet8. The Register 9. Tweakers10. Slashdot11. Robin Robbins
Are you using Social Media? YES 90%
NO 10%
less than an hour 64%
2-3 hours23%
4-5 hours3%
Don’t use social Media 10%
Which of the following Social Media networks do MSPs use on a daily basis?
65%
56%
29%
8%
4%
9%
21%
10 | datto.com 11 | datto.com
MSP PAIN POINT #1: MARKETING/SALES
TakeawayThe majority of MSPs struggle with a strong lead generation strategy in their marketing plan.
“Role-playing allows you to get more comfortable with the act of cold calling and work out any kinks. It also enables employees to bounce ideas off one other and share strategies that work best for them. It may feel silly, but it truly works..” -Eric Torres, Datto (and Former MSP)
YOU ALSO MIGHT BE INTERESTED IN:The Sales and Marketing Made MSPeasy Success Kit
1. Lead Generation 3. Cold Calling
2. Hiring Sales Talent 4. Market Differentiation
12 | datto.com
MSP PAIN POINT #2: STAFFING/TRAINING
TakeawayThe #2 pain point for MSPs? Recruiting quality technical, sales, and marketing candidates.
“The majority of our employees come from relationships we have in the community. We’ve built a good reputation over time, so people are talking about us —that attracts candidates.”
- Jordi Tejero,
CRS Technology Consultants
YOU ALSO MIGHT BE INTERESTED IN: IT Staffing Made MSPeasy
EBOOK
IT Staffing Made MSPeasy
1. Recruiting Tech, Sales, Marketing
2. Employee Training
3. Employee Retention
12 | datto.com 13 | datto.com
MSP PAIN POINT #3: RANSOMWARE/CYBER SECURITY
“Ransomware is a big problem, but it’s also a big opportunity to educate clients and give them the tools they need to protect their data. I usually start the conversation with ‘I don’t want to scare you, but ransomware is something you need to think about. Just politely preface the subject. It’s not a hard sell—once you educate, they get it” -Frank Slattery, TeamLogic IT
TakeawayRansomware is a global cyber security problem that isn’t going away anytime soon. For MSPs, it can be a massive opportunity to be the hero as long as you pitch it the right way.
REPORT
Datto’s State of the Channel
Ransomware ReportEUROPE
YOU ALSO MIGHT BE INTERESTED IN:The European State of the Channel Ransomware Report
1. Lack of cyber security Awareness 3. Justifying the Cost of BCDR
2. Increase in Ransomware Attacks 4. Sophisticated Phishing Scams
14 | datto.com
MSP PAIN POINT #4: CUSTOMER SERVICE
“We have to make sure we are resolving their issues and following up afterward to guarantee they are satisfied. If we can prevent an issue from escalating and getting worse, that’s our goal.” - David Tidwell, RIgidnet LLC
TakeawayAbove all else, the quality and speed of service an MSP provides is key to maintaining strong customer relationships. Clients should always feel like they’re you’re number #1 priority.
7 MORE Best Practices of Successful MSPs
EBOOK SAAS PROTECTION
YOU ALSO MIGHT BE INTERESTED IN:7 More Best Practices of Successful MSPs
1. Timely, High Quality Service 3. Onboarding New Customers
2. Integrating Client Management Software 4. Billing
14 | datto.com 15 | datto.com
TAKEAWAYS• The average MSP is male, college-educated, and between the ages of 40 and 49.
No major surprises there.
• Half of MSPs serve over 100 clients, offer 1 year contracts, and still offer break-fix services in some shape or form.
• The majority of MSPs today focus their business efforts for a specific vertical (or verticals). More than 50% of MSPs specialise services for Manufacturing companies.
• To keep on top of industry trends, MSPs subscribe to a variety of channel publications, including The Channel Co, Channel Futures, and Channel Partners.
• The majority of MSPs experience a short commute (less than 30 minutes) and rely on their own vehicles to get them to and from the office.
• The majority of MSPs are active daily on social networks, particularly Facebook, LinkedIn and Reddit.
• MSPs are across the globe are watching Game of Thrones, Stranger Things, and Black Mirror.
• When it comes to Star Wars versus Star Trek, the channel has spoken. For the majority of MSPs, the force is very much with Star Wars.
• The top business challenges for global MSPs: Marketing/Sales, Staffing/Training, Ransomware/cyber security, and Customer Service.
16 | datto.com
ABOUT THE REPORTDatto’s 2018 European State of the MSP Report is comprised of statistics pulled from a survey of roughly 400 managed service providers across Europe. To learn more about the results, please reach out to Katie Thornton, Senior Manager of Content Marketing at Datto, Inc.
ABOUT DATTOAt Datto, our mission is to empower the world’s small and medium sized businesses with the best in enterprise-level technology. We do it by equipping our unique community of Managed Service Provider partners with the right products, tools and knowledge to allow each and every customer to succeed. It’s an approach that’s made us the world’s leading provider of MSP delivered IT solutions. Datto is headquartered in Norwalk, CT, with offices worldwide. Learn more at www.datto.com.
Copyright © 2018 Datto Inc. All rights reserved.
Follow us on Twitter: @DattoEMEA
GDPR Made MSPeasy
Lead Generation Made MSPeasy
IT Staffing Made MSPeasy
Recurring Revenue Made MSPeasy
Marketing Made MSPeasy
You Also Might Be Interested In:
Sign up for the Datto Blog today!SIGN UP NOW
Additional Resources: