The important study for MSPs, "The Evolving Landscape of the MSP Business," shows that almost one in two MSPs need to upskill to keep up with the latest technology and security trends.
On the occasion of Barracuda's recent "Global MSP Day", which includes a series of live and virtual events for MSPs worldwide, the cloud security specialist traditionally announces the results of the sixth edition of its study "The Evolving Landscape of the MSP Business". . The report shows, among other things, how German managed service providers are adapting their service offerings to meet the increasing security challenges of customers with regard to a decentralized and hybrid workforce and the ever-expanding attack surface.
Service offerings for increasing security challenges
🔎 MSP Report: Which factors are driving the increased use of managed services? IT technology and security concerns (Image: BarracudaMSP).
34 percent (2022: 35 percent) of German MSPs stated that in 2023 they would see significant business opportunities in cloud-based applications and cloud-based infrastructure (17 percent/2022: 37 percent), in network security (26 percent/2022 : 39 percent) and in security operations centers/SOC (17 percent/2022: not queried).
MSPs in Germany remain optimistic – the most important results from a German perspective:
- 49 percent of German MSPs surveyed believe they need to upskill to keep up with the latest technology and security trends, up from 35 percent in 2022. 40 percent feel they need to improve employee well-being. In 2022 it was 31 percent.
- Despite the current uncertain economic situation, the German MSPs surveyed still have growth plans and expect an average revenue increase of 11 percent - from US$6,79 million in 2022 to US$7,53 million in 2023 - compared to a global average by 25 percent, from $12 million in 2022 to over $16 million in 2023.
- MSPs expect to launch an average of four new services for customers in 2023, compared to six in 2022. Twenty-three percent also plan to expand their customer base into new verticals. In the previous year, this was still 23 percent.
- 37 percent (2022: 47 percent) of MSPs are concerned about the increased competition in the MSP market and the difficulty in recruiting skilled workers (54 percent/2022: 51 percent).
- The stress level of the average MSP employee is significant: 62,9 percent report a higher stress level than in 2022 (24 percent).
“MSPs are an important part of the cybersecurity landscape. They help companies of all sizes protect their increasingly connected employees, assets, data and IT infrastructure from a growing number and intensity of cyber threats,” said Kay-Uwe Wirtz, Regional Account Director MSP, (DACH) at Barracuda. “Our study shows how seriously MSPs take this commitment. It highlights some of the opportunities MSPs see in 2023, as well as the challenges they face as they compete for talent and market share.”
Background of the report
Independent market research firm Vanson Bourne Barracuda surveyed 500 decision makers and professionals from managed service providers with five to 350 employees in countries in the North America, EMEA and ANZ regions on Barracuda's behalf.
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About Barracuda MSP To thrive in today's ever-evolving cyber threat landscape, managed service providers must run their business as a security-centric enterprise. Barracuda MSP enables IT managed service providers to easily scale their business with a combination of multi-layered security and data protection solutions, award-winning support, and MSP-friendly prices. Barracuda MSP's industry-leading IT security solutions are trusted by nearly 5.000 IT service providers worldwide.