2021 Global state of the MSP report

Datto surveyed more than 1,800 managed service providers (MSPs) worldwide to learn more about who they are and what they care about. Of those surveyed, only 17% were active Datto partners. The result: A wealth of data and insights from a diverse sample of MSPs on how they run their business, the solutions they use to serve clients, and their predictions for the next few years.

There were a number of results that stood out, especially when compared to previous Datto surveys. For one, respondents said that competition is now their top challenge. Also, nearly all MSPs now offer some flavor of managed security services. Finally, most MSPs expect that at least half of client workloads will be in the cloud by 2023.

It is also important to note that nearly all respondents said that now is a good time to be an MSP. And while each of the items above may have a connection to COVID-19, MSP revenues were not significantly impacted by the global pandemic. This is quite remarkable and speaks to the strength of the managed services business model.

MSPs are not just the core of the IT channel and Datto’s business, but essential service providers for millions of small and medium businesses. We hope that this report helps shed light on their thriving industry.

Research Approach

This report is based on a survey of over 1,800 MSPs worldwide. It was conducted by Strategy Analytics, an independent research firm based in Boston, Massachusetts.

Methodology:

• 15-minute online survey
• Ending sample is a total of n= 1,884 globally

Respondents:

• Must be from a managed service provider (MSP)
• Must be a decision-maker or influencer for solutions for their company

Major Findings

• Competition is the top challenge facing MSPs.
• COVID-19 had a mixed impact on revenue, but most saw a slight increase or stayed flat.
• Nearly all MSPs currently offer some flavor of managed security services.
• Most MSPs expect that at least half of client workloads will be in the cloud by 2023.