Aussie MSPs expect revenue growth despite economy pressures
Barracuda Networks has released new research that shows how Managed Service Providers (MSPs) in Australia are adapting their service portfolio to meet customers’ evolving security challenges, such as a remote and hybrid workforce and the ever-expanding attack surface.
For example, 42% of MSPs say they see significant business opportunities in cloud-based applications, and cloud-based infrastructure 24%, in network security 27%, and in Security Operations Centres 29% in 2023.
The findings are detailed in a new report, The Evolving Landscape of the MSP Business 2023, published in conjunction with Barracuda’s Global MSP Day. MSP Day is now in its sixth year and comprises a series of live and virtual events for MSPs, hosted around the world.
“MSPs are a vital component of the cybersecurity landscape, helping organisations of all sizes to protect their increasingly connected employees, assets, data and IT infrastructure from a growing range and intensity of cyberthreats,” says Luke Smith, Regional Account Director, APAC, Barracuda MSP.
“Our research shows how seriously MSPs take that commitment. It highlights some of the opportunities MSP see in 2023 as well as the challenges they face competing for talent and market share alongside other commercial entities. We hope the findings will help the security community to better understand the needs and concerns of MSPs.”
Key findings of the report include:
MSPs in Australia face 2023 with optimism.
Although the uncertainty of the economy continues into 2023, the MSPs surveyed have ambitious plans for growth, anticipating an average revenue increase of 28.43% – from $19.73 million in 2022 to $25.34 million in 2023 – compared to a global average of 25%, from $12 million in 2022, to over $16 million in 2023.
Growth will be powered by adding new services and supporting new industry sectors.
Australian MSPs expect to introduce on average 7 new services for customers in 2023, compared to 5 in 2022. Some 58% are also looking to expand their client base into new industry sectors.
Growth comes at a price and MSPs face challenges in their own businesses.
Some 47% of MSPs are concerned about the heightened competition in the MSP market compared to 2022, and about attracting talent. Meanwhile, 40% believe that significant improvements are needed in their ability to keep up with the latest technology and security trends, and employee well-being.
Stress levels for the average MSP employee are considerable, with 22% reporting a high level of employee stress.
“There are many opportunities for MSPs in 2023. Small and mid-sized businesses face an enormous gap between their current level of security and the level of security they should have to stay safe,” says Roy de Bruijn, Chief Commercial Officer, Tredion.
“It is our responsibility to raise awareness among SMBs of the cybersecurity risks they face, the gaps they need to address, the compliance requirements they face – such as the NIS2 directive in Europe - and the investment that needs. The future is bright for MSPs who have the people with the skills to support customers through that journey.”
The report is based on research commissioned by Barracuda from independent research organisation, Vanson Bourne, and includes the insights of 500 decision makers and knowledge workers from managed service provider (MSP) organisations across the North America, EMEA, and ANZ regions, with between five and 350 employees.