What is the Persona of a True Top-tier MSP? Glad You Asked

Per Robin Ody, Principal Analyst at Canalys (an Informa Tech company), in 2024 the TAM for IT managed services is $548B and consists of nearly 335K MSPs globally; the #MSP501 represents the top-tier.

Elite Performers List: The MSP 501

Each year Channel Futures receives applications for the MSP 501, the most prestigious and comprehensive global survey and ranking of managed service providers (MSPs) in the world. To apply each firm provides extensive details about its financial, technology, service and operating underpinnings.

Everyone knows MSPs wear a lot of different hats. Thus, MSP 501 applicants represent a mosaic of variety, innovation and excellence, and span a wide array of businesses which vary by business type, geography, company size, and ownership model. With all of these different variables, how can you identify the best partners to work with?

Below are the key attributes of top-tier partners which every IT vendor/ supplier should be partnering with.

Note: For more insights and survey data on the #ITchannel market, checkout Omdia’s Channel Partner Strategies reports.

Models of Efficiency: The Essential Trait of Top-tier MSPs

MSP 501’ers don't just provide IT services—they redefine them, setting benchmarks for others to follow. To be the gold-standard, one of the key components is operational efficiency. Below are characteristics of the most successful MSPs in the world and the attributes that are helping them transform the industry. The common trait exhibited is high efficiency which makes these partners stand out in the crowded and competitive MSP market.

Financial and Staff Highlights

MSP 501’ers understand that success in the channel isn't just about surviving but thriving through innovation and foresight. Although most of them are relatively small (184 avg. employees), they boast healthy revenues, from the millions up to billions, a testament to their expansive reach and influence.

MSP 501’ers recognize that their greatest asset is their people, so they prioritize attracting, developing, and retaining top talent. This investment in human capital translates into superior service delivery and innovative solutions.

Revenue Efficiency Experts

One of the defining characteristics of MSPs is their remarkable efficiency in revenue generation. They consistently accomplish great results which underscores their ability to leverage technology, streamline operations, and achieve a high level of financial success as shown by results like, Total Revenue per Employee, Customer Account, and End-User.

Relationship Builders: Customer Account Efficiencies

Customer satisfaction and operational efficiency go hand in hand. Customer account efficiencies indicate an ability to scale services effectively and cater to organizations of various sizes (small and large). Some key indicators of success include End-users per Customer Account, End-user Devices per Customer Account, and Customer Accounts per Employee.

Conclusion

The personas of elite MSPs, like the MSP 501, are defined by a variety of characteristics, I’ve highlighted a few of the essential ones that relate to remarkable efficiency, a people-centric approach, and strong customer relationships. These attributes collectively create a powerhouse of service delivery that not only meets but exceeds client expectations. As the IT channel evolves, MSP 501’ers will undoubtedly remain at the forefront, leading the charge with unwavering excellence, no matter where they’re positioned, in the

• Top 10: Insight, Ensono, Expedient, 3Cloud, DoiT International, Recovery Point Systems, Zayo Group, 360 SOC, Inc., AKATI Sekurity, CDW.

• Final 10: Symmetric IT Group, Cloudticity, Highpoint Technology Group, UDT, Paranet Solutions, OneNeck IT Solutions, Netsurit, BPI Information Systems, Universal Data Inc., Lantech - Managed IT Support, Security & Cloud.

Or somewhere in-between.

This newsletter is brought to you by Channel Futures and Omdia.

Thank you to the 2024 MSP 501 Sponsor Ingram Micro.