SolarWinds MSP survey: European IT resellers already generate 25% of their revenue from managed services

SolarWinds MSP survey: European IT resellers already generate 25% of their revenue from managed services

IT service providers save up to 23 hours per week with automated solutions

PRAGUE, May 25, 2020 – SolarWinds MSP, a provider of IT solutions for service providers, presented the results of its 2019 Trends in Managed Services survey, according to which the average IT reseller in Europe already generates a quarter of its revenue from managed services. The survey, in which SolarWinds MSP, in cooperation with analytics agency The 2112 Group, approached IT resellers in Europe, confirmed a further increase in the share of IT services with recurring revenue at the expense of the traditional “break/fix” business model, in which a one-time fee is paid to resolve IT infrastructure issues.

As many as 97% of respondents among the IT resellers surveyed stated that they offer some form of managed services. This fact demonstrates a shift in demand among end customers from reactive IT problem-solving to a proactive approach to operating IT infrastructure. Customers today no longer want to wait for an outage to occur, preferring instead to pay preventively for services that maintain maximum IT availability without operational interruptions.

The most interesting survey findings:

• The average European IT reseller already generates 25% of its total revenue from managed services; for resellers that primarily identify as MSPs (Managed Services Providers), this figure is 36%
• Revenue generated by IT resellers from services with recurring revenue increased from 30% of total revenue in 2018 to 34% in 2019
• IT service providers save an average of 23 person-hours per week using tools that automate their routine activities
• The most frequently provided managed services are device management (91%), server management (86%), email (80%), and network monitoring and management (77%). A complete portfolio of managed services is offered by 66% of IT resellers
• From an IT security services perspective, the most frequently provided solutions are antivirus (93%), data backup and recovery (82%), firewalls (82%), antispam (80%), and endpoint protection (77%)
• In 2020, 66% of IT resellers expect to expand their service portfolios, while only 2% of respondents plan to limit their offerings

“Especially at the present time, we are feeling pressure from businesses and organizations for maximum IT infrastructure uptime, as they are exposed both to increased user workloads and hacker attacks,” said Štěpán Bínek, Product Manager Cloud Services at ZEBRA SYSTEMS, which distributes SolarWinds MSP products on the Czech and Slovak markets. “The SolarWinds MSP product portfolio is an ideal tool for IT resellers to expand proactive services for end customers, increase their own productivity through automation of routine MSP processes, and grow their revenue.”

The main products in the SolarWinds MSP portfolio include, in particular, SolarWinds Remote Monitoring and Management (RMM), a centralized suite of management and remote monitoring tools with cloud management, especially for smaller and emerging MSP providers. SolarWinds N-central, a solution for comprehensive management of the entire IT environment under one roof, is intended for larger and established MSP organizations.

The complete survey results are available on this webpage.