How inflation impacts spending power
Ann Westerheim, Ekaru
Customers feel stretched, employees expect higher salaries, and MSPs need to decide whether pricing can move with those pressures.
2024 MSP Trends Report
Concerns and Opportunities for MSPs
MSPs share their opinions on the challenges facing the industry in 2024.
External concern
53.56%
Inflation was the top external concern for MSP success and growth in 2024.
MSPs share their opinions on the challenges facing the industry in 2024.
Inflation is the top external concern
In almost every type of filter we applied to the survey data, Inflation was the #1 external concern for MSP success and growth in 2024.
Out of all respondents, 53.56% said it was their top concern. There was a sizable gap between the first and second place spots on the list. The second highest external factor MSPs were worried about was cybersecurity threats at only 35.58%.
Following in third place were National/Local economics, a factor closely tied to inflation.
Top Stats
Source survey data
Inflation
54%
Cybersecurity threats
36%
Slow National/Local economy
31%
Global current events
30%
Your competition
26%
Managing remote and hybrid clients
25%
Access to supply chain
25%
COVID impacts
18%
Government/Industry compliance standards
16%
Environmental policies
14%
Clients' insurance procurement
13%
Your business's location (city/state)
13%
Finances and performance are the top internal concern
In a tie for the top internal concern, both finances and performance measuring came in at 30.15% of respondents.
Following closely behind in third and fourth were the inability to acquire or retain clients and the inability to hire or recruit new employees at 27%.
Top Stats
Source survey data
Finances
30.15%
Performance measuring
30.15%
Inability to acquire or retain clients
27%
Inability to hire or recruit employees
27%
Managing finances to retain employees
Carrie Green, Alt-Tech Inc.
Finances drive every decision. Without enough money, payroll and people become the first concern.
Compliance is the most sought-after service for 2024
When asked about services MSPs don't currently offer but plan to in 2024, the #1 response was Compliance as a Service with 20.89%.
The data shows that MSPs are looking into a wide range of services, with none standing out strongly above the rest. Compliance was the top response at 20%, but the lowest response was network management with 12%.
Compliance with various industry and government regulations has become more important to MSPs, and its growth is looking to continue in 2024.
Explore ControlMap for complianceTop Stats
Source survey data
Compliance as a Service
20.89%
Network Management
12%
Awareness and desire for compliance is increasing
James Ratcliff, Ratcliff IT
Compliance pressure is coming from partners, investors, customers, and industries that now treat security as reputational risk.
Small businesses may not take compliance seriously enough
Ann Westerheim, Ekaru
Many small businesses do the right things but do not document them. Visual evidence and guidance can make compliance easier to understand.
Strategic business planning is becoming more long-term
MSP confidence is stronger than ever and, according to our MSP respondents, a big part of that confidence comes from solid planning.
Business planning is how MSPs go from a simple Break-Fix operation to a true Managed Service Provider. Even established MSPs have found great success in taking planning seriously both internally and externally with clients.
Of everyone who completed the survey, 88% have at least six months of strategic plans outlining their business plan. With 20% planning for multiple years in advance, long term planning is becoming more critical for growth.
Of those who said they were not confident in their MSP's ability to grow in 2024, 30% said they had no strategic plan whatsoever. This can be a major factor in how MSPs run their business and plan for a future of growth.
See Lifecycle ManagerTop Stats
Source survey data
have at least six months of strategic plans
88%
of not-confident MSPs had no strategic plan
30%
plan multiple years in advance
20%
Planning is one of the essential elements of IT
James Ratcliff, Ratcliff IT
Planning means knowing where the business is going and aligning IT, security, investment, and milestones to that direction.
Developing a plan, not a sales pitch
Ann Westerheim, Ekaru
A roadmap should show where a business ought to be and how to get there, without turning every conversation into a sales pitch.
Creating a stable plan based on performance
Carrie Green, Alt-Tech Inc.
The business is more stabilized and can look further into the future while focusing on operational efficiencies.
