STATE OF THE INDUSTRY
2025 Survival Predictions For MSPs :
What To Do NOW To Preserve Profits , Revenue , And Clients
BY COLLEEN FRYE
“ The best way to predict your future is to create it .”
As we enter 2025 , those words , often attributed to both Abraham Lincoln and management guru Peter Drucker , ring especially true in these uncertain times . No one can truly know without a doubt what ’ s in store for MSP business owners in the year ahead .
But Reed Warren has a message for MSPs that lines up with Lincoln ’ s and Drucker ’ s advice : “ You can never stop innovating .”
The CEO of iT Valuations , an M & A and valuation advisory firm , expects 2025 to be “ business as usual , but business as different .” If an MSP is not innovating every 12 – 18 months , no matter the economy or who ’ s leading the country , your growth will plateau , and then decline .
“ A lot of MSPs haven ’ t innovated ,” Warren says . “ They haven ’ t looked at , ‘ How do I change my services ?’ ‘ How do I bring more value for the same price ?’ ‘ How do I blend and package those pieces ?’”
While he ’ s optimistic about 2025 , he stresses that innovation will be key as every business today is dependent on technology .
And there ’ s good reason for MSPs to double down on innovation : They can capitalize on a robust market . Industry analyst firm Canalys projects that the managed services industry will grow from $ 548 billion this year to $ 608 billion in 2025 . “ To put it in perspective , the world GDP at $ 105 trillion is growing at 2.6 %, the tech industry this year at $ 4.94 trillion is growing at 6.2 %, and the MSP market is growing by double the tech industry by 12 %,” says Jay McBain , principal analyst at Canalys .
Despite the challenges of 2024 — inflation , threats of recession , high interest rates , extreme weather — McBain says most MSPs
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