Search for recurring revenues driving managed services

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Search for recurring revenues driving managed services

Simon Quicke
Managed service providers (MSPs) continue to grow their revenues and are moving into delivering cloud based support for customers according to the latest survey of the state of the channel.

The MSPMentor top list of MSPs reveals that the trends in the market are for growth and a move beyond traditional services, including help desk and patch management to include more cloud options.

The latest MSPMentor report states that there has also been a change in the pricing model pitched to customers: "The big market inflection point remains pricing, with a growing number of MSPs introducing all-in user-based pricing rather than a la carte point pricing for individual services."

The potential threats to the MSP market include the state of the European economy but also the possibility that at the basic end of the spectrum, including PC monitoring, they might be some commoditisation.

"Despite those potential market challenges, the managed services industry continues to flourish. MSPs, and their technology partners, continue to integrate multiple point services into complete IT as a Service (ITaaS) portfolios. And the number one focus area -- profitable monthly recurring revenues (MRR) -- continues to pay dividends for MSPs," stated the MSPMentor report.

Recent managed services roadshows held by Kaseya have been well attended indicating that there is a strong appetite in the channel for recurring revenues.

In a session in Birmingham yesterday Jim Simpson, CEO and founder of Ziptech, asked the audience who was ahead on their recurring revenue plans and only one reseller was able to answer in the positive.

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