Ep 255: Internal IT vs MSP; MSP Market is still growing; Does size matter in managed services?
Internal IT vs MSP Can an MSP do everything an internal IT department can? That is the quintessential question the world has been asking for 30 years. Just because an organization has an internal IT department does not guarantee that it will be efficient. In fact, all IT departments face the same choices as IT service providers: you can be proactive or reactive. Struggles of internal IT Natural barriers of scalability with internal IT Reactive vs proactive internal IT MSP Market Still Growing According to Allied Market Research , the MSP market is growing at a solid rate and will reach growth of more than 11%, with an estimated revenue of $594 billion globally by 2031. Now, this study focused entirely on enterprise class MSPs, but it still has some value for the rest of the MSP community. If managed services is growing at the enterprise level, there is no reason to believe it is doing anything different at the mid-market and SMB levels The drivers behind the growth are also applicable to all levels of the MSP market; factors such as adoption of cloud computing, keeping IT management costs in line, and increasing data security threats. At these levels, managed services will represent half of all IT services spending around the world. Does Size Matter in Managed Services? I hear a lot of MSPs talk about what they would do if they only had more resources. While more resources can make a difference, it isn't the only thing that indicates success in managed services. In fact, there are many examples of large organizations who have very poorly run managed services operations. Efficiency, not size is what matters Resources only gets you as far as your process It's all about execution