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Datto’s European State of the MSP Report
Report
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IntroductionDatto surveyed 200+ managed service providers (MSPs) across Europe to learn
about their day-to-day lives, businesses, and IT Channel predictions. The result: a
wealth of statistics covering everything from the technology MSPs are using and
business challenges they’re facing to where they get their news and how many
industry events they attend annually.
With Datto’s European State of the MSP Report, we go beyond a snapshot of
today’s MSPs and take a deeper dive into their lives and businesses. MSPs are
the core of the IT Channel, and by sharing these insights, we hope to help them
overcome challenges and highlight resources to help them succeed.
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Today’s Managed Service Providers
Primary Role:
Age:
38% of MSPs are between the ages of 40-49.
Under 21 2%
21-29 14%
30-39 31%
40-49 38%
50-59 13%
60-69 2%
46% of MSPs wear multiple hats and describe their primary role as a mix between both technical and business responsibilities.
Technical 23%
Business 31%
A mix of both 46%
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CEO
Meet the MSP Leader
Watch: • Game of Thrones• Star Trek• Anything Marvel
Roles:• C-level (CEO, CTO, CISO, etc.)• Managing Director• Executive Management (SVPs)
Age: 40-49
Struggle with: • Acquiring new customers• Ransomware/
Cybersecurity issues
Socialise on: • Facebook• LinkedIn• Twitter
Consume:• Online training videos
& books
Subscribe to: • CompTIA, • Datto Downtime Blog• CRN
Attend: • 3-4 industry
events per year
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Tech Support
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Socialise on: • Facebook• LinkedIn• Twitter• Instagram
Consume: • Online training
& webinars
Age: 30-39
Meet the MSP Technician
Attend: • 1-2 industry
events per yearRoles:
• Service Desk/Help Desk• Engineering
Subscribe to: • CompTIA • IT Business• TechTarget
Struggle with: • Work/life balance• Cybersecurity/
Ransomware issues• Technology vendor issues
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Watch: • Big Bang Theory• Anything Marvel• Mr Robot
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The Business of Managed Services
Years in Business:
49% of MSPs have been in business for 16+ years.
Less than three years 6%
3-5 years 6%
6-8 years 8%
9-11 years 12%
12-15 years 19%
16+ years 49%
NEARLY 100%of MSPs state that now is as good a time as ever to be in their industry.
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MSP Staffing Trends
Hiring Projections:
1-5 74%
6-10 7%
11-15 3%
16-25 2%
26-50 1%
50+ 1%
None 12%
Recruiting Difficulty This Year vs. Last:
About the Same 53%
Harder 45%
Easier 2%
74% of MSPs plan to hire between 1-5 employees in the next year.
Regionally, 45% of MSPs in Europe report it will be harder to recruit new talent this year, compared to 37% globally.
Geo Trend:
In the UK, we’re seeing some nervousness in the job market,
likely due to Brexit. People appear to be riding out this period
of economic uncertainty before they think about taking up a
new role, with a new employer. As soon as the uncertainty is
out of the way, we hope to see a stronger job market, filled with
more confident candidates.
Steve Stokes, New Business Director,
Aura Technology
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Annual Revenue:Recurring Revenue:
Less than $200k 13%
$200-$500k 20%
$500k-$1M 20%
$1M-$5M 24%
$5M-$7.5M 13%
$7.5M+ 10%
NEARLY 100% of MSPs in Europe report driving a portion of their revenue from recurring services, compared to 80% globally.
24% of MSPs report their businesses make between $1M-$5M in annual revenue.
Making Dollars and Cents of Managed Services
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1-100 48%
101-200 20%
201-300 8%
301-400 4%
401-500 4%
501+ 16%
MSPs and their Clientele
48%
91% of MSPs also report making at least one client site visit per week.
Face Time with Clients:
OVER 70% of MSPs predict adding between 1-10 new clients in the next 12 months.
Size of Client-base:
of global MSPs report having between 1-100 clients.
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MSP Specialisation
Top Industries Targeted by MSPs:*
Finance 43%
Education 41%
Healthcare 39%
Construction 37%
Legal 36%
Manufacturing 35%
Non-profit 33%
Real Estate 26%
Startups 23%
Government 15%
of MSPs are specialising their services for a particular industry. 36%
Of this group, the most popular verticals MSPs report targeting are Finance, Education, and Healthcare.
We specialise in the Nuclear and engineering industry and target our service offerings specifically towards this vertical. With our track history, engineering team,
and specialist managed services, we have given ourselves an advantage when bidding opportunities in
this space.
Mike Douglass, Commercial Director, Yellowbus Solutions
*Survey respondents were able to select multiple choices.
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Popular MSP Learning Tools
How MSPs Consume Industry-Related Content:
MSPs utilise a solid mix of written and visual formats to consume content. Blogs, videos, and books ranked as the top three mediums MSPs use to learn about what’s new in the IT Channel.
Top 3 Consumed Daily: • Blogs/Articles
• Videos
• Email Newsletters
Top 3 Consumed Monthly:• Online Training Courses
• Webinars
• Books
Go-To MSP Business Resources
Top IT Channel Publications:
MSPs around the world ranked their top three publications and/or IT Channel websites as Heise, IT Business and The Channel Company.
Heise
IT Business
CompTIA
Channel Partners
TechTarget
Datto Downtime Blog
MSSP Alert
Tubb Blog
ChannelPro
Redmond Channel Partner
Dutch IT Channel
Channele2e
IT Europa
Channel Futures
Reseller News
ARN
Channelnomics
Channel Asia
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Sign up for the Datto Downtime Blog today!
Sign Up Now
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MSPs and Screen Time
When it comes to leisurely content consumption, some things never change. The majority of European MSPs rank Game of Thrones as their go-to series followed by Star Trek and The Orville. IT professionals enjoy science fiction? Who knew!
What MSPs are Watching:
• The Punisher• Ozark• The Avengers
• Suits• True Detective • Killing Eve
• Star Wars• The Big Bang
Theory
Game of Thrones Star Trek The Orville
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Socially Savvy MSPs
Social Media Platforms MSPs Access Daily:*
Industry Event Attendance:Facebook 68%
Linkedin 63%
Instagram 33%
Twitter 32%
Popular Online Communities MSPs Access:*
Reddit 36%
Spiceworks 32%
Synaxon 20%
ComTeam 14%
IT Alliance 7%
The majority of MSPs are on Facebook and LinkedIn on a daily basis.
Globally, Reddit, Spiceworks, and Synaxon are the top three online communities.
30% of MSPs report attending 1-2 industry events annually.
*Survey respondents were able to select multiple choices.
Reddit is popular amongst many MSP. The average user is
dedicated to their chosen topic, making their discussions
candid and in-depth. Reddit provides unfiltered opinions
from the people whose opinions matter most to your market.
Observing these conversations will give you broader insights
into industry trends.
Pippa Loveridge, Head of Marketing,
Mirus IT Solutions
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What’s Keeping MSPs Up at Night?
Top Business Pain Points for MSPs:*
In Europe, good help is hard to find. MSPs in that region ranked hiring good people as their #1 pain point.
Hiring Good People 41%
Work/Life Balance 40%
Marketing/Sales 34%
Internal Operations 34%
Ransomware/Cybersecurity Issues 31%
Technology or Vendor Issues 30%
Profitability 20%
Revenue Growth 19%
Compliance or Data Privacy Issues 17%
Company Culture 15%
Competition 5%
Customer Churn 5%
Geo Trend:
41% of MSPs report hiring good people to be their leading pain point, followed by work/life balance.
*Survey respondents were able to select multiple choices.
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MSP Pain Point #1: Hiring Good People
Why do managed service providers struggle to recruit new staff?
Tips from MSPs who have recruited the best talent:
7 Best Practices of Successful MSPs
IT Staffing Made MSPeasy
Whether it’s a lack of resources or a lack of
suitable candidates, many MSPs struggle to find
the IT talent that best fits their business model.
Part of an effective recruitment scheme means
investing in your hiring process and sourcing
experienced, qualified employees - which not
only grows your company’s reputation, but the
desire to work for it too
Dan Sharp, Mirus, Director
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MSP Pain Point #2: Work/Life Balance
Why are managed service providers struggling to attain work/life balance?
Operations Made MSPeasy
5 Tips for Break-fix to MSP Success
Tips from MSPs on time management:
A lot of MSPs find it hard to balance business and
personal time. A common issue is finding yourself
working IN the business, not ON the business. Many
MSPs find themselves doing a lot of the work and
firefighting. The key is to find the tasks that can be
outsourced, either to employees or partners. When
you are planning your work, ask yourself if the tasks
you are scheduling will add value to you and your
business, if not, delegate it.
Mike Douglass, Commercial Director, Yellowbus Solutions
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MSP Pain Point #3: Marketing and Sales
Why do managed service providers struggle with marketing and sales?
Tips from marketing and sales savvy MSPs:
Lead Generation Made MSPeasy
Sales Made MSPeasy
Marketing Made MSPeasy
Cold Calling Made MSPeasy
MSPs need to build out a sales and marketing
strategy that aligns with the wider business goals. As
long as the sales and marketing teams have a strong
relationship and common goals, the whole function
will run smoothly together. A strategy shouldn’t be
rigid, it should adapt as trends in the market change
and different functions in the business grow. This
requires regular organisational meetings with clear
objectives and actions for both teams to ensure
business targets are met.
Jessica Symondson, Marketing Director,
Complete IT
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MSP Pain Point #4: Internal Operations How can managed service providers achieve operational efficiency?
Tips from MSPs who have achieved operational efficiency:
How to be an MSP
Operations Made MSPeasy
We’re seeing a growing demand for MSPs to start
offering different levels of Security services. This
is mainly driven from businesses now having
more awareness of the need and issues around
security. MSPs can be proactive in their approach
in dealing with common security threats such
as ransomware. Applying cybersecurity best
practices, using solutions such as Datto BCDR,
with ransomware detection, and end user
education can help.
Matt Takhar, CEO, Inbay Ltd.
Datto Unified Continuity
Learn More
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Top Products and Services Offered by MSPs
85%of MSPs report help desk services as their biggest offering, followed by office productivity software services.
Technical support/help desk 85%
Office productivity software services (Office 365, G Suite, etc.) 77%
Networking (WiFi, switching, routing) 75%
Virtualisation services (server, desktop, networking) 66%
Business continuity and disaster recovery (BCDR) 62%
VoIP telephony 60%
Security management software/tools 57%
Cloud-based infrastructure design and management 56%
Data services (VPN, Fiber, MPLS, Metro Ethernet) 45%
Storage design and implementation 30%
Products and Services:*
*Survey respondents were able to select multiple choices.
Fewer MSPs are offering break-fix services and are evolving their business models to be managed services focused. Once they’ve achieved the standard MSP offerings, like technical support or BCDR products, multiple
layers of security solutions make their way into the mix.
Eric Torres, Channel, Development Manager, Datto, Inc. & former MSP
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44% of MSPs report that HPE is the top recommended server to clients.
MSP Technology Favorites
HPE 44%
Dell 25%
Other 13%
Fijitsu 9%
lenovo 6%
I build my own servers 3%
Microsoft Hyper-V 53%
VMware 41%
Other 6%
Most Popular Virtualisation Software:
Top Servers Recommended to Clients:
Geo Trend: In Europe and Asia-Pacific, HPE server is king.
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MSP Security Offerings
Most Critical Security Solutions, According to MSPs:*
81% of MSPs consider anti-virus the most critical security solution for small-to-medium-sized businesses, followed by advanced firewall and RMM.
Anti-virus 81%
Advanced Firewall (UTM, NGFW, etc.) 73%
Remote Monitoring and Management (RMM) 64%
Patch Management 69%
Anti-spam 62%
Two-factor Authentication 57%
End User Training and Education 51%
Password Policy Management 49%
Intrusion Detection and Prevention 46%
Web content filtering 46%
Vulnerability Scanning 41%
Data Loss Prevention (DLP) 38%
Virtual Private Network (VPN) 37%
Traditional Firewall 33%
Threat Intelligence 28%
Identity and Access Management (IAM) 16%
Privileged Access Management (PAM) 15%
*Survey respondents were able to select multiple choices.
Cybercrime is evolving daily, and as a result, businesses must have
more than just an antivirus package to keep them protected. When we
onboard a new client, we review their existing network security. We’ve
found most of our clients to have older firewall technology, which
we replace with the latest cloud-managed firewalls. These have
intrusion detection and prevention and real-time malware
protection, giving our clients another layer of protection. Keeping
our clients safe online is of paramount importance.
Steve Stokes, Business Development Director, Aura
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Driving Managed Services Forward
Solutions that Positively Impacted MSP Businesses in the Past Year:
MSPs are providing more cloud-based solutions to their clients,
such as Office 365 and G Suite. SaaS Protection from Datto offers a
true backup solution which allows you to easily recover data from a
single portal.
Matt Takhar, CEO, Inbay Ltd.
Remote Monitoring and Management (RMM)
Cloud Storage and Management
Productivity Software (Microsoft Office 365, G Suite)
Professional Services Automation (PSA)
Business Continuity and Disaster Recovery (BCDR)
Documentation Software
Cybersecurity
Networking
Voice over Internet Protocol (VoIP)
datto.com | 27
Key Takeaways• Today’s MSPs are between the ages of 30-49 and report their organisations have been
in business for 16+ years. Nearly 100% of MSPs surveyed say that now is as good a
time as ever to be in their industry.
• The majority of MSPs report annual revenue between $1M-$5M. Nearly 100% of MSPs
report driving a portion of their earnings from recurring services, compared to 80%
who report driving revenue from recurring revenue services, globally.
• 28% of European MSPs report having between 1-100 clients. 91% of MSPs also report
making at least one client site visits per week. In the next 12 months, over 70% of
European MSPs predict adding between 1-15 new clients.
• MSPs in European ranked their top three IT Channel publications as Heise, IT
Business, and The Channel Company.
• The majority of MSPs are accessing Facebook and LinkedIn on a daily basis and
list Reddit, Spiceworks, and Keine as the top three online communities they’re
hanging out on.
• Hiring good people and work/ life balance are the top two pain points for European
MSPs, followed by marketing and sales, internal operations and ransomware/
cybersecurity issues.
• Nearly half of MSPs report recommending HPE servers to clients, followed by one
quarter who recommend Dell. 50% of MSPs report utilising Microsoft Hyper-V as
their virtualisation software, closely followed by 40% who report using VMware.
• The majority of MSPs plan to hire between 1-5 employees in the next 12 months: most
predict the ease of hiring to be about the same compared to last year.
• The top 3 most critical security offerings according to MSPs are anti-virus, advanced
firewall, and Patch Management.
• MSPs report RMM, cloud storage management, productivity software, professional
services automation (PSA) AND business continuity and disaster recovery
(BCDR),among the solutions that positively impacted them the most last year.
Additional Resources:
MSPeasy Series
Pricing Made MSPeasyDiscover the Best Pricing Model for Your Needs
MSPeasy Series
Sales Made MSPeasyThe Ultimate MSP Guide to Successful Sales
MSPeasy Series
Recurring Revenue Made MSPeasy7 Best Practices for Success
About the ReportDatto’s 2019 European State of the MSP Report is comprised of statistics pulled from a survey of 200+
managed service providers across the globe. To learn more about the results, please reach out to
Katie Thornton, Director, Content and Marketing Programs at Datto, Inc.
About DattoAs the world’s leading provider of IT solutions delivered by Managed Service Providers (MSPs), Datto
believes there is no limit to what small and medium businesses can achieve with the right technology.
Datto offers business continuity and disaster recovery, networking, business management, and file
backup and sync solutions, and has created a one-of-a-kind ecosystem of partners that provide Datto
solutions to half a million businesses across more than 130 countries. Since its founding in 2007, Datto
has earned hundreds of awards for its rapid growth, product excellence, superior technical support,
and for fostering an outstanding workplace. With global headquarters in Norwalk, Connecticut, Datto
has international offices in the United Kingdom, Netherlands, Denmark, Germany, Canada, Australia,
China, and Singapore. Learn more at datto.com.
Copyright © 2019 Datto Inc. All rights reserved.
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