April 13, 2020
MSPs Adjust Growth Expectations In Light of Pandemic
MSPs are adjusting their growth expectations for 2020 as a result of the global health crisis, but they largely expect to weather the storm and even find new opportunities, according to our latest research.
Prior to the outbreak, MSPs globally were projecting to grow their revenue by about 20% per year, on average. Those projections have been adjusted downward by 11% for the remainder of 2020, meaning MSPs are still expecting to grow through the crisis, albeit at a much slower pace than originally planned.
When MSPs were asked how they expect the pandemic to impact 2020 revenue, nearly 40% said they expected to reduce their growth projection by between 10 and 20%. 23% said they expect to remain on plan or reduce their plan by less than 10%. 11% are actually revising their growth projections upward, expecting revenue to increase during the crisis compared to their original plan.
MSPs that serve verticals directly impacted by mandated closures, such as hospitality, fitness, and retail, have revised their growth expectations most significantly.
MSPs serving businesses that remain open report that social distancing has made it more challenging to complete project work and make on-site visits to their clients. However, these declines have been partially offset by the growing demand for remote access solutions and cloud migrations—which is creating new opportunities.
The survey was conducted by Datto April 1-3, and included MSPs from North America, Europe, and ANZ.