New study shows huge growth in MSP market and big savings for SMB’s

Managed ServiceA study carried out recently by custom research company “MarketsandMarkets” appears to suggest a huge leap will take place in the managed service provider (MSP) industry by 2018.  From its current position at $142.75 billion, the market looks set to grow to a robust $256.05 billion over the next five years.  In order to predict this figure, researchers looked at data centers, networking, security and various other operational services.

The findings showed how much better off small-and medium-sized businesses are when they begin to use managed services.  By outsourcing all or some of their IT infrastructure, smaller companies benefit in a number of ways; they often receive advice from an expert consultant, reduce their computer maintenance costs and increase productivity in the process.  Overall, MarketsandMarkets found most small companies can expect a 30% to 40% saving on their technology budget when they use managed IT services.

The news was greeted with a degree of skepticism by members of the managed services sector, who tend to believe that unless MSP providers adopt new technologies quicker, this growth will not be as pronounced.  While they acknowledged that there had indeed been a general upturn in the use of outsourcing, they pointed out that this surge was not necessarily indicative of a more permanent boom.  If firms fail to keep on top of the latest technological advances, such as cloud computing, they could struggle to win contracts.

Seth Bostock is the president and COO of software company independenceIT.  He explained that adapting to new technologies will be vital to the industry over the coming years: “I actually think the traditional managed service providers are at risk if they don’t adopt this new strategy,” he said.  “It’s more important than ever to make sure you partner with the right people, you have the right solutions in place and you’re going to capitalize on this growth and you’re going to combat the big companies.”


Case Study for Using Managed Services

Learn how Great Lakes Computer Corp was able to help ALL PRO Freight Systems increase customer service support while decreasing the time it took to solve customer problems.

Read the Case Study

Learn more about the author Bob Martin