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BUSINESS BRIEFING technologyreseller.co.uk 13 “Our Global State of the MSP Report identifies an opportunity to elevate clients from traditional backup to full business continuity & disaster recovery (BCDR) protection. This shows that while 70% of the servers of MSP clients are protected by a backup solution, only 55% are protected by a full business continuity solution,” she says. “In addition, the fact that just 38% of endpoints are currently protected suggests that there are significant opportunities in increasing endpoint protection, especially for clients that work from home or on the road.” The second big growth area is in cloud services, including Microsoft 365/ Google Workspace and server and desktop virtualisation. Adoption levels have continued to grow during the pandemic, but Datto’s analysis suggests there is still plenty of growth potential (see table top right). Partnering for profit In order to capitalise on these opportunities, many MSPs choose to partner with organisations that specialise in particular areas. For example, while 75% of MSPs currently have a managed security offering, typically including antivirus (70%), backup and disaster recovery (69%) and email security (64%), 43% offer such solutions in partnership with an organisation that has specialist knowledge in those areas. “This,” explains Harris, “could be a managed security services provider (MSSP) or a vendor, like Datto. For, just as SME clients rely on MSPs as trusted partners to manage their IT, so a growing number of MSPs depend on Datto to provide the solutions and tools needed to run their businesses and meet their clients’ needs.” 2 Set specific growth goals. MSPs that set specific growth goals for their business, on average, experience an additional 2 percentage points of annual growth. Secondary growth factors Other growth factors identified in the report over which MSPs have less control are: n Business size: Larger MSPs, measured by both employee and client count, generally grow faster than smaller ones. They benefit from increased efficiencies of scale; they typically have PSA and RMM systems in place to support their growth; they are more likely to have managed security and cloud management offerings; and they enjoy larger client and contract sizes than smaller MSPs. n Years in business: The number of years an MSP has been in business is negatively correlated with growth, meaning small, upstart MSPs generally grow faster than older MSPs. However, this is offset by the number of clients and employees an MSP has, so larger MSPs that have been growing consistently do not see a commensurate drag on growth. n Geography: MSPs based in the Americas are growing fastest, followed by Europe and, lastly, APAC, where the managed services model is less established. Growing opportunities As MSPs prepare for 2021, setting growth targets and increasing their managed services offerings should be priorities. So, what areas should they be focusing on? Harris highlights data security, which has been given greater urgency by the risky combination of a dispersed workforce and expanding cyber threat; and greater adoption of cloud services, in part to support hybrid working, where workers split their working week between home and office. How can Datto help? With a product portfolio covering security and business continuity, networking and MSP operations, including PSA and RMM tools, Datto helps MSPs of all sizes deliver a broad range of managed services efficiently and profitably. Datto solutions have applications across a broad range of managed services, including cloud productivity services, such as Microsoft 365/Google Workspace (offered by 75% of MSPs surveyed), technical support/helpdesk (73%), networking (73%), business continuity and disaster recovery (70%) and many more. The last 12 months have been challenging on many fronts, but technology has not been one of them. Thanks to modern IT solutions and the capabilities of MSPs (and the tools they use), businesses of all sizes have continued to operate and provide services to their clients often in the most extraordinary circumstances. In doing so, many have discovered a new, better way of doing business. With a new year beckoning, MSPs, supported by companies like Datto, have the opportunity to accelerate the digital transformation started by clients, expand their service offerings and continue to grow their recurring revenue. No wonder 84% of respondents told the Global State of the MSP Report that now is a good time to be an MSP. To find out how Datto can help grow your business, please speak to a representative. Percentage of clients using the following solutions today and in two years: Technology Today Two Years Increase Microsoft 365 62% 70% 13% Windows Virtual Desktop 22% 34% 50% Virtual Machines (VMs) in Azure 21% 33% 62% Google Workspace 23% 28% 20% 55% 70% of MSPs’ clients’ servers are protected with some type of backup solution. of MSPs’ clients’ servers are protected with full business continuity. Data Protection and Business Continuity Trends