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December 3, 2014

Market looking up for managed service providers

Kaseya research finds prices and deal size on the up

By CBR Staff Writer

Managed service providers are in a healthy state of affairs with many new opportunities for growth, according to research.

The annual global pricing survey by cloud specialist Kaseya suggests higher-growth providers (MPSs) are pricing higher, going after larger deals and implementing value-based pricing with their customers.

"The MSP market is constantly changing as clients’ needs evolve, and successful providers need to continuously evolve their businesses to survive and thrive," said Loren Jarrett, chief marketing officer at Kaseya.

The annual survey is based on findings gathered from owners and operators of nearly 700 MSP firms spread across more than 30 countries.

It suggests opportunities for MSPs to offer new services in 2015 that would help top providers create a level of differentiation from their competitors.

Kaseya’s research suggests high-growth MSPs offer emerging and advanced services that lower growth counterparts do not provide as frequently.

Less than 10 per cent of survey respondents offer full mobile device management (MDM) and BYOD management services, although the proportion offering MDM is expected to top 20 per cent within the next six months.

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The most dramatic areas of growth for MSP provision through 2014 included network and connectivity support, monitoring client IT service levels, and cloud management.

More than 90 per cent of respondents expect to either increase or keep their managed services pricing flat during 2015.

 

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