Barracuda: Providers Embracing Marketplaces, but Have Doubts

Published On: June 30, 2024Categories: Buzz

Barracuda Networks, a Campbell, California-based security company, has published a new report suggesting that MSPs around the world are embracing marketplaces and artificial intelligence (AI) to better meet customer needs, but worry about their lack of knowledge about AI and its applications.

According to the company’s “Evolving Landscape of the MSP Business 2024” report, MSPs continue to shift from project-based customer support to a recurring services model. This year, MSPs expect just under half (44%) of their revenue to come from such recurring services, up from 34% in 2023. According to 92% of respondents, businesses are scaling back their in-house IT and relying more on MSPs, and this is likely to be a key driver for the rise in recurring services.

Customer demand is greatest for security products and services. According to the survey, the top three solutions MSPs offer and support are security operations centers (42%), security awareness training (38%), and network security (36%). MSPs expect to expand their portfolio with an average of six new services overall during 2024.

More than 90% of MSPs believe that cloud marketplaces will simplify operations. In addition, 47% of MSPs are using cloud marketplaces already, and 50% of the remaining respondents are exploring the option.

Almost 9 in 10 of the MSPs surveyed (87%) say they need either significant or notable improvements in their knowledge and application of AI products and services. In addition, 77% of MSPs feel under pressure to offer customers AI insight and tools.

While growth is expected in 2024, MSPs cited their top challenges as increased competition in the MSP market (48%), up from 44% in 2023; and lack of ability to help customers comply with government regulations (82%).

Barracuda’s seventh annual MSP report features the findings of an international survey of 700 MSP organizations.

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MSPs face continuous change amid increasing competition, evolving routes to market, and the expansion of potential attack surfaces. The research shows that many MSPs are responding to shifting client needs by actively embracing new opportunities that will benefit clients as well as their own operations and business growth.”

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