3 Essentials to Enhance MSP Offerings and Boost Revenues

Demand for Managed Service Providers (MSPs) is on the rise. According to a recent report, companies working with MSPs rose by 56% in 2024. This means more opportunities for MSPs to expand their customer base and boost revenues.

In fact, looking ahead, Canalys projects that the MSP market is expected to grow by at least 12% this year.

However, amid the expected growth and the potential business opportunities, competition remains tough. With over 150,000 MSPs globally, businesses that need technology services have a wide array of service providers to choose from.

The question now is: how will a business choose you from the competitors in the MSP space?

For MSPs, navigating this competitive environment requires an understanding of the best approaches and service offerings to capture the attention of clients.

This blog explores three key focus areas that you, as MSPs, must pay attention to:

1. Establishing strong partnerships

Canalys further found that 69% of MSPs believe that partner programs would improve their relationships with vendors, underscoring the significance of strategic partnerships in the MSP landscape.

But why are these partnerships vital? MSPs are teaming up with independent software vendors (ISVs) for expanded offerings and expertise.

Additionally, about 50% of MSPs will be operating in an ecosystem (co-managed or co-partnering) model by 2024, according to Canalys. This means MSPs are seen to be having increased collaborations with various partners. For example, AvePoint’s Global MSP Survey revealed that 46% of MSPs purchase products from many different marketplaces, while 42% work with ISVs.

This aligns with our MSP survey findings, which show that one of the top factors that MSPs look forward to in a longstanding and successful partner relationship is their regular check-ins (58%). Tapping into this partner ecosystem can allow MSPs to enhance their service offerings quickly and deliver more value to their clients by getting access to tools and resources that might be time-consuming to develop internally.

2. Strengthening cybersecurity services

Cybersecurity remains a consistent – and increasingly important – factor for businesses today. In IBM’s Cost of a Data Breach Report, it was revealed that smaller organizations have seen higher impacts from data breaches than larger organizations. For example, businesses with less than 500 employees saw the cost of an average data breach increase to $3.31 million from $2.92 million.

With the rising incidence of cyber threats, SMBs are investing heavily in cybersecurity: 82% have increased their cybersecurity budgets compared to the previous year. This trend underscores how cybersecurity remains a critical area for MSP growth. In fact, Canalys reports about a third of MSPs anticipate a more than 20% growth boost in their cybersecurity revenues in 2024.

MSPs can capitalize on this need by building out robust security services that provide the peace of mind SMBs need while also creating new revenue streams. To do this effectively, MSPs should offer a comprehensive risk management strategy to proactively detect and mitigate risks, as well as solutions that can restore data quickly and minimize downtime, should a worst-case scenario occur.

3. Preparing Customers for AI

AI has become increasingly integrated into many organizations: Among SMBs, 33% of companies had invested in AI in 2023, and 71% will continue or start investing in the near future, according to Microsoft. Already, AI’s impact is evident, with 84% of SMBs reporting the positive impacts of AI on productivity, as shown in the Microsoft survey.

However, AI adoption also brings challenges particularly in ensuring data security. A recent Cisco study found that 92% of organizations require new techniques to manage data and risks associated with using generative AI. MSPs can play a crucial role in managing such challenges.

Businesses need MSPs’ assistance in challenges such as:

• Centralizing data to help employees use AI efficiently
• Risk management and data governance solutions to help secure sensitive data from falling into the wrong hands
• Storage optimization to avoid data sprawl from additional AI-generated content

Offering expertise in AI helps MSPs increase recurring revenues. For example, existing customers using migration and backup services may also need assistance in preparing for AI implementation; offering these services can be an excellent upsell opportunity within your existing customer base.

Learn more about the 3-step process in preparing businesses for AI implementation:

Future-Proof Your Services with AvePoint

As businesses’ needs continue to grow and transform, MSPs like you have an opportunity to enhance your offerings to stay ahead of the competition. By focusing on building strategic partnerships, as well as providing comprehensive cybersecurity solutions and AI readiness tools, you can quickly and effectively address customer needs and drive sustainable growth for your business.

AvePoint’s Partner Program empowers your business with solutions that optimize and scale your offerings, helping gear your customers for success. Our Partner Program provides MSPs with tools to manage, automate, scale, and cost-optimize customers’ digital workplaces.

AvePoint serves as a true partner, providing MSPs with the necessary resources such as go-to-market kits, training materials, co-marketing opportunities, and dedicated technical assistance.

Partner with AvePoint to quickly meet business demands and drive revenue growth.