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EBOOKHow MSP Are You?Discover how your MSP business compares to the rest.
IntroDatto surveyed over 200 European MSPs at DattoCon17 to find out more about their businesses, what it meansto be an MSP and where they see their business heading in 2018. As a Managed Service Provider, it is importantthat you have the most up-to-date information regarding the state of the channel so you can benchmark yourbusiness against the competition. As we all know a little competition never hurt anyone!Throughout this report you will gain a deeper insight into the solutions other MSPs are offering, which toolsmaximise their business growth and even which sport they prefer! As a 100% channel only business, our toppriority at Datto is making sure you are fully equipped with everything you need in order to save time, money andensure greater business growth. It’s vital you put your solutions at the forefront of everything you do and thisreport may well offer you a few more ideas to help you on the way to reaching your business goals.
63% DERIVE OVER 50% OF41% OF MSPs HAVEOVER 250 CLIENTSTHEIR REVENUE BY MONTHLYRECURRING SERVICES.- 34% SAY THEY GET OVER 70%- ONLY 21% SAY THEY GET LESS THAN 30%MSPs WITH MORE THAN 2M REVENUE DERIVE ANAVERAGE OF.15% HAVE 101-250 & 29% HAVE LESS THAN 50 CLIENTS29% OF MSPs HAVE AN ANNUALTURNOVER OF OVER 5M32% HAVE A TURNOVER OF 1-5MILLION & 30% HAVE UNDER 500K4 HOW MSP ARE YOU REPORT datto.com/ukMSPs WITH NATIONWIDECLIENTS DERIVE ANAVERAGE OF.MSPs WITH LESS THAN50 CLIENTS DERIVE ANAVERAGE OF.57%MRR5 HOW MSP ARE YOU REPORT datto.com/uk55%MRR56%MRR
TARGET VERTICALS72% OF MSPs SPECIALISEBUSINESS FOR A SPECIFICVERTICAL OR VERTICALS.6 HOW MSP ARE YOU REPORT CAL INCLUDING NURSING, DENTISTRY AND PHARMACEUTICAL32%EDUCATION31%NOT FOR PROFIT30%RETAIL (INCLUDING E-COMMERCE)29%NONE28%TRANSPORT AND LOGISTICS28%CONSTRUCTION AND INFRASTRUCTURE27%OTHER OFFICE-BASED WORK, IE RECRUITMENT, CONSULTANTS, ESTATE AGENTS24%GOVERNMENT20%OTHER10%7 HOW MSP ARE YOU REPORT datto.com/uk
WHICH SERVICES?WHICH OF THESE SERVICES DO YOU OFFER?39% OF MSPs HAVEFULLY MANAGED IT SUPPORT87%BACKUP & BUSINESS CONTINUITY87%CLIENTS NATIONWIDESECURITY82%15% HAVE CLIENTS WITHIN 10 MILES, 27% WITHIN 25 MILES AND 19%WITHIN 50 MILESMONITORING81%NETWORKING80%HELP DESK80%EMAIL77%STORAGE69%DESKTOP59%VIRTUAL IT MANAGER ORPLACING STAFF WITH YOUR CLIENTS53%8 HOW MSP ARE YOU REPORT datto.com/uk42% OF MSPs SAY THEIR AVERAGECLIENTS HAVE 21-50 EMPLOYEESWITH 42% STORING AN AVERAGE OF1-3 TB & 29% STORING 4-10TB9 HOW MSP ARE YOU REPORT datto.com/uk
65%STAFF MOTIVATIONOF MSPs USE ARMM TOOL53%10 HOW MSP ARE YOU REPORT datto.com/uk1. STRONG CULTURE2. SHARED GOALS AND VISION3. TEAM ACTIVITIES4. INCENTIVESWHAT DO YOU FIND MOST SUCCESSFULWHEN DEVELOPING YOUR TEAM?VENDOR TRAINING DAYSONLINE COURSESMANAGER LEAD TRAININGFORMAL COURSESNONEOF MSPs USEA PSA TOOL11 HOW MSP ARE YOU REPORT datto.com/uk60%53%47%41%5%
GDPR WAS MARKED AS A TOP CONCERNFOR THOSE IN THE FOLLOWING INDUSTRIES.MEDICAL48%CONSTRUCTION AND INFRASTRUCTURE36%CONSULTANTS33%62% SAY THIER CLIENTSEDUCATION36%BIGGEST CONCERN IS GDPRFINANCE40%- 42% MITIGATION AGAINST SECURITY RISKSGOVERNMENT41%LEGAL39%MANUFACTURING36%NOT FOR PROFIT38%OTHER OFFICE BASED WORK30%RETAIL39%TRANSPORT AND LOGISTICS39%12 HOW MSP ARE YOU REPORT datto.com/uk- 26% CLOUD ADOPTION- 19% MAKING IT COSTS MORE PREDICTABLE- 13% INCREASING VALUE OF IT AS A COMPETITIVE ADVANTAGE13 HOW MSP ARE YOU REPORT datto.com/uk
WHAT DO YOU SEE AREYOUR MAIN CHALLENGES INACHIEVING YOUR GROWTHPLANS FOR 2018?WHAT’S YOUR PREFERREDWAY TO KEEP UP TO DATE WITHINDUSTRY NEWS?EVENTS27%TOP MSP CHALLENGES IN 2018TALKINGWITH PEERSONLINESTAFFING/TRAININGKEEPING PACE WITH TECHNOLOGY DEVELOPMENTS 28%14%59%14 HOW MSP ARE YOU REPORT datto.com/uk31%15 HOW MSP ARE YOU REPORT TING22%GROWING PAINS19%CHANGING CUSTOMER EXPECTATIONS17%INTERNAL SYSTEMS16%PRICING STRATEGY15%TRANSITIONING FROM BREAK FIX TO MSP11%
#2WHAT DO YOU SEE ARE YOUR MAIN CHALLENGES IN ACHIEVING YOUR GROWTH PLANS FOR 2018?#1STAFFING &TRAININGRecruiting technical talent is the biggest staffingchallenge for MSPs of any size. It can be difficult toattract, retain and train staff whilst trying to grow yourbusiness nationwide. As MSPs grow, the lack of timeand resources prove to be their biggest challenge andmany find it difficult to delegate duties to managesudden growth, causing operational efficiency tosuffer. There are ways around this, however, investingheavily in finding the right staff now and training themwill give you more of the tools you need to adapt, growand scale.Top Tips: Why not take a look at our IT Staffing madeMSPeasy eBook for more helpful information!16 HOW MSP ARE YOU REPORT datto.com/ukHow to Identifya Phishing ScamKEEPING PACE WITHTECHNOLOGY DEVELOPMENTSWhilst it can be hard recruiting good tech people,most MSPs are struggling to keep up-to-date withtechnology developments. Whether this is due to lackof spare time, not having the correct supplies or notkeeping an eye on competitors, all of which will impactcompany growth in the long run. A simple solutionmight be to set up Google alerts for specific topicsyou are interested in. This way the information comesto you and you won’t have to search for it. Pass theinformation around to your staff and they will be keptinformed too!Top Tip: Why not have a read of our blog and find outhow to set up and manage your Google alerts!17 HOW MSP ARE YOU REPORT datto.com/uk
#3RANSOMWARE &CYBER SECURITYThe past year saw a dramatic increase in the amountof cyber attacks hitting countries globally, so it is nowonder most MSPs believe that Ransomware and cybersecurity breaches will hinder their company growth.Unfortunately there is no way to stop the threats andattacks as most of your clients will become victims, nomatter the size. You need to make sure you are alwaysequipped to help them when a disaster strikes. Offeringa Total Data Protection solution will save your clientstime, money and offer complete peace of mind!Top Tip: Take a look at our Complete Cyber SecurityGuide to help educate your clients!18 HOW MSP ARE YOU REPORT datto.com/uk#4SALES &MARKETINGMany MSPs find it difficult to succeed at generatingleads because they lack the time and resources todedicate to sales and marketing efforts. Marketingplans will often fail if it lacks a strong lead generationstrategy, which will of course impact companygrowth. Measuring your client base, knowing your MRR(Monthly Recurring Revenue) goals will help to give youa better idea of what you need to do in order to reachtargets. It is vital that both sales and marketing worktogether in order to work towards company growth.Top Tip: Why not have a read of our Lead GenerationMade MSPeasy and learn how to create a strongbusiness strategy for 2018!19 HOW MSP ARE YOU REPORT datto.com/uk
50% OF MSPs EXPECTRANK THESE SERVICES BY YOUR FOCUS ON GROWTH FOR 201810-25% GROWTH THIS YEAR!10%40%33%17%2018KEY FOCUS POINTS10%20 HOW MSP ARE YOU REPORT datto.com/uk11-25%25-50%FULLY MANAGED IT SUPPORTSECURITYBACKUP AND BUSINESS CONTINUITYNETWORKINGMost MSPs are moving from Break-Fixto a fully managed IT support business,offering all their solutions under oneumbrella. Not only does this guaranteeMRR (Monthly Recurring Revenue) italso makes way for a more efficientand proactive business.Every 4.2 seconds a new piece ofmalicious malware is made. Withthis in mind, it is no wonder MSPswill be improving how they marketand sell security solutions. Offeringtop security solutions will guaranteebusiness growth.Backup and Business Continuity arethe foundations to every MSP business.They offer a higher level of service toyour clients and create extra revenuestreams. Both solutions will guaranteebusiness growth, as more of yourclients look towards using up-to-datemethods to protect their businesses.We found that most MSPs wereworking towards achieving businessgrowth in 2018 by branching intoNetworking. Not only will thisguarantee a recurring revenuestream, it will also enable your clientsbusinesses to work more efficiently.WHATGROWTH AREYOU LOOKINGFOR IN 2018?OVER 50%DNA21 HOW MSP ARE YOU REPORT datto.com/uk
DINYOUTUBETHE REGISTERMSP MENTORCNETWIREDIT NEWSDATTO(OTHER)1632227344520022 HOW MSP ARE YOU REPORT datto.com/ukGET SOCIAL52%Keep up-to-date with all the latest informationfrom Datto EMEA via our social channels. Share yourstories, send us your pictures and get involved!Search for:Datto EMEA40%Datto Inc.@DattoEMEA21%1%14%23 HOW MSP ARE YOU REPORT datto.com/uk
4MANCHESTER UTD2OF MSPs SAY FOOTBALLIS THEIR SPORT!11FAVORITE ENGLISH FOOTBALL TEAMFAVORITE RUGBY TEAMEXETER CHIEFS42FAVORITE F1 TEAMMERCEDES24 HOW MSP ARE YOU REPORT datto.com/uk25 HOW MSP ARE YOU REPORT datto.com/ukFAVORITE EUROPEAN FOOTBALL TEAMPSG
ConclusionOur findings from this report tell us that 2018 is going to be a huge year for business growth. The majority ofthe MSPs who took part in the survey are already nationwide and show all the right signs of moving towardsbecoming larger entities. What is also clear, is that most MSPs target a specific vertical and work towardsachieving success with their clients in mind.The two hot topics for 2018?Well for your clients it’s GDPR. Are you ready for May 2018?And for the yourself? Staff training!The two could go hand in hand if you keep your staff up-to-date with the latest trends within the technologysector and enable them to further educate your clients.This is where the majority of MSPs see themselves heading, into a fully IT Managed Support Service Provider,and it would seem there is no stopping the herd! With trends, news and updates flooding social media platformseverywhere, it is no wonder that most MSPs look to LinkedIn for up-to-date industry news closely followedby Facebook. That’s not to say that most MSPs don’t find kicking a ball around on a Saturday afternoon just ashelpful!Overall, 2018 looks like it might be bigger and better than ever before for every MSP out there.The question you need to ask yourself is, How MSP are you? And if you don’t match these guys, you might wantto get in touch!
About DattoDatto protects business data and provides secure connectivity for tens of thousands of the world’s fastest growing companies.Datto’s Total Data Protection solutions deliver uninterrupted access to business data on site, in transit and in the cloud.Thousands of IT service providers globally rely on Datto’s combination of pioneering technology and dedicated services to ensurebusinesses are always on, no matter what. Datto is headquartered in Norwalk, Connecticut and has offices in Monroe, Rochester,Boston, Portland, Toronto, London, Singapore, Sydney, Frankfurt, and Amsterdam.Want to know more? Visit www.datto.com/ukEMEA HeadquartersGlobal OfficesDatto, Europe Ltd250 Longwater AvenueGreen Park,ReadingRG2 6GB,United ingapore: 44 0118 402 9600 49 69 66 778 0900 31 20 888 61 00 1 877 811 0577 61 02 9696 8190 65 315 86291 2018 Datto, Inc. All rights reserved.
SECURITY Every 4.2 seconds a new piece of malicious malware is made. With this in mind, it is no wonder MSPs will be improving how they market and sell security solutions. Offering top security solutions will guarantee business growth. BACKUP AND BUSINESS CONTINUITY Backup and Business Continuity are the foundations to every MSP business.
