Business News

Untangle Announces MSP Benchmark Study Results

2008-07-15 08:01:00

Industry Maintains Servicing Pricing Levels Despite Growing Number

of Entrants

SAN MATEO, Calif.–(EMWNews)–Untangle today announced the results of the industry’s first Managed

Services Provider (MSP) Benchmark Study. The goal of the study was to

offer an objective set of business metrics to provide the MSP community

with insight into the range of MSP business models and performance.

Key focal points of the study included managed services pricing, scaling

and business model evolution. Over 200 MSPs nationwide participated in

the survey, conducted by Pacifica Group, an independent research and

marketing consultancy for the high tech industry.

This study offers an interesting glimpse into

MSP trends, said Joe Panettieri, editorial

director of MSPmentor, the ultimate guide to managed services. The

MSP model is still emerging so its great for

MSPs to see where they stand amongst their peers.

Key findings from the survey include:

The MSP model is growing more popular: While over two-thirds of

the survey respondents reported having been in the technology reseller

business for more than six years, nearly one-third began delivering

managed services within the last year. Further, respondents expressed a

clear desire to move away from selling break/fix services and towards

the MSP model over the next two years.

Automation is the key to MSP growth/scaling: MSPs can scale by

increasing employee headcount until they have around 25-50 customer

contracts or approximately 500 devices managed. Beyond this point, MSPs

need to accelerate investments in automation (i.e. monitoring &

management) and focus on process standardization to achieve the next

level of growth. Nevertheless, new MSPs take 35

years to establish themselves and new entrants should not over invest in

automation technology ahead of need.

MSPs keep small businesses up-to-date with the latest IT trends: Nearly

40% of respondents already offer VoIP services today, with another 27%

considering offering it within a year. 65% offer web content filtering

and that number is expected to jump to 84% within a year. MSPs are

continually enhancing and expanding their services offerings to better

serve their small business customers.

Prices have held steady despite a growing number of MSPs serving

small businesses: Although pricing models for each service

area vary widely, newer MSPs are not leading with discounts, suggesting

that prices are not commoditizing.

Our MSP partners told us that they struggle

to define their initial pricing and service offerings,

said Bob Walters, CEO of Untangle. We hope

that the MSP Benchmark Study will help both established and aspiring

MSPs refine their business models and grow their customer bases.

For all survey findings and a more detailed look at MSP pricing by

service area, the entire report can be viewed at

About Untangle

Via the Untangle MSP Partner Program, Managed Service Providers (MSPs)

can now offer Untangles network security

services to block spam, viruses, spyware, adware, and unwanted content

without incurring any upfront costs. Key elements of the program include

Hardware-as-a-Service (HaaS), flexible software licensing, and

interoperability with MSP enablers Kaseya, Level Platforms, and N-able.

For more information or to join the Untangle MSP Partner Program, please

visit or

call (866) 233-2296. Untangle is located in San Mateo, California.

Page One PR
Lindsay Mecca, 415-321-2343 (Media)
[email protected]

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