{"id":38150,"date":"2020-01-29T19:59:00","date_gmt":"2020-01-29T15:59:00","guid":{"rendered":"https:\/\/www.msp360.com\/resources\/?p=38150"},"modified":"2024-01-08T19:04:21","modified_gmt":"2024-01-08T15:04:21","slug":"how-mature-is-your-msp-service","status":"publish","type":"post","link":"https:\/\/www.msp360.com\/resources\/blog\/how-mature-is-your-msp-service\/","title":{"rendered":"How Mature Is Your MSP Service?"},"content":{"rendered":"

The global market for managed services is expected to reach $282 billion by 2023. But not all MSPs will reap the benefits equally. Why? Because not all providers are the same. MSPs come in different sizes and shapes with separate client profiles and backgrounds.<\/p>\n

Know Your MSP<\/h2>\n

As an MSP owner, you need to understand your position in the market. This information will help you enhance your service and product offerings, as well as marketing<\/a> and sales<\/a> activities.<\/p>\n

Recognizing the maturity level of your MSP business helps prioritize your technology requirements, both at present and in the future.<\/p>\n

Find Out More About MSP Categories<\/h2>\n

Most MSPs can broadly be divided into four distinct tiers:
\nTier 1: Small Business
\nTier 2: Midmarket and Enterprise
\nTier 3: Telcos and Cloud Service Providers
\nTier 4: Global Systems Integrators and IT Consulting Firms<\/p>\n

Each tier offers services, but caters to a certain group of customers and comes with its own set of needs.<\/p>\n

Tier 1: Small Business MSPs<\/h2>\n

These IT service providers monitor and manage client networks remotely and shift customer workloads to third-party cloud providers, such as Amazon Web Services, Microsoft Azure and Google Cloud<\/a>. According to ChannelE2E, there are fewer than 20,000 successful small business MSPs in the US market.<\/p>\n

Tier 1 MSPs normally work with approximately 10 clients. Although they may have a couple of managed contracts, they focus mostly on the break\/fix model.<\/p>\n

Further reading<\/span> How to Transition Your Break-Fix Clients to Managed Services<\/a><\/p>\n

Due to the unpredictable income and uncertain revenue, these MSPs often skip tool and infrastructure investments. This results in less efficient, homegrown customer support solutions.<\/p>\n

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<\/a>Tier 2: Midmarket and Enterprise<\/h2>\n

These companies have between five to twenty employees and a single founder. However, they still manage to generate annual revenue of $1.5 million to $5 million, and have 500 to 2,500 endpoints under their management.<\/p>\n

These MSPs mostly work side-by-side with corporate IT firms, offering proactive, remote services like account management, remote support, installations, backup and IT security services.<\/p>\n

These mid-level MSPs take more responsibility for a client\u2019s business. Although most Tier 2 MSPs rake in a steady source of revenue, some manage to grow by developing expertise in certain areas or differentiating themselves from the competition.<\/p>\n

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