Barracuda Networks published its The Evolving Landscape of the MSP Business 2024 report, which illustrates how MSPs worldwide are embracing marketplaces and AI to meet customer need, but still worry about their lack of knowledge about AI and its applications.
This seventh-annual report, undertaken alongside Vanson Bourne, surveyed 700 MSP organizations worldwide. The report is being released alongside Barracuda’s Global MSP Day, which includes virtual and live events for MSP partners in North America, Europe and Asia Pacific.
Findings indicate that MSPs continue to shift from project-based customer support to a recurring services model. This year, MSPs expect 44 percent of their revenue will come from such recurring services, up from 34 percent in 2023. According to 92 percent of respondents, businesses are scaling back in-house IT and relying more on MSPs, a likely driver for the rise in recurring services.
Customer demand is greatest for security products and services. According to the survey, the top three solutions MSPs offer and support are SOCs (42 percent), security awareness training (38 percent) and network security (36 percent). MSPs expect to expand their portfolio with an average of six new services, overall, in 2024.
Other key findings include:
- MSPs believe that cloud marketplaces will simplify operations, with 92 percent identifying cloud marketplaces as a crucial tool for their organization, 47 percent already using cloud marketplaces and 50 percent exploring the option.
- 87 percent needing either significant or notable improvements in their knowledge and application of AI products and services, with 77 percent of MSPs under pressure to offer customers AI insight and tools.
- 98 percent believing they need to improve internal security posture.
- Top challenges including increased competition in the MSP market (48 percent) and lack of ability to help customers comply with government regulations (82 percent).
“Like all organizations, MSPs face continuous change,” said Patrick O’Donnell, SVP, Worldwide Sales, Barracuda. “Competition is increasing and routes to market are evolving, while emerging technologies and digital transformation are expanding the potential attack surface for cyberthreats. That’s a lot to keep on top of, and the survey shows that more than half of MSPs are looking for extra support. Good partner/vendor relationships that deliver specialist experience in the field of security and AI-integration can help MSPs address some of the challenges and thrive in the competitive landscape of 2024 and beyond.”
To view the full report, click here. For Barracuda’s partner program, visit here.
