Barracuda Networks has announced key findings from its 2022 The Evolving Landscape of the MSP Business report, launched in conjunction with MSP Day.
“The themes in this year’s report align with what we have been hearing from our Partner Advisory Council,” said Neal Bradbury, SVP, Barracuda MSP. “We know that MSPs desire strong relationships with partners that can help them provide the very best managed security services to their customers, while at the same time allowing them to focus on the well-being of their own employees.”
Key findings from the report include:
- Growth in managed services revenues predicted for 2022. MSPs expect revenues to grow by over a third in 2022, with average revenues predicted at US $12.12 million this year, compared with US $8.93 million in 2021, according to survey respondents. And while managed services are not the sole source of revenue for many respondents, service provision is on a growth trajectory. In 2021, 53% of respondents’ income came from services, and this is predicted to rise to 63% in 2022. On average in 2021, respondents’ service offerings increased by four services, but in 2022, 94% expect their services portfolio to increase by an average of six services.
- Employee burnout is a growing concern with fears of cyberattacks on the rise. MSPs will have to focus more on employee wellbeing to stay successful. Nearly one in five (16%) respondents believed the average employee is highly stressed, while 56% said stress levels could be defined as moderate. Further, 80% of respondents believed their customers are increasingly concerned about being breached by cybercriminals and are looking to them for help, which is creating more pressure on the MSP to deliver.
- Concerns over regulations and compliance are increasing. Adding to that strain are evolving cybersecurity regulations. Just 36% of MSP respondents were confident of being fully up-to-date and compliant with these regulations. Another 36% believe that there are too many cybersecurity regulations to comply with. It is no surprise that 89% felt their organisations needed further support and education around these regulations. Ultimately, failure to address these issues could lead to both workforce performance and customer service problems further down the line.
- Nearly 100% of respondents need more vendor support. A whopping 98% of those surveyed admitted they had at least one area where they need additional vendor support. These included security incident response planning (44% of respondents), help with hybrid working best practices (50%) and marketing support (44%).
You can read the full report here.
