Numerous anecdotes suggest that managed service providers (MSPs) are holding up better than traditional resellers in the recession. Now, CompTIA (the Computing Technology Industry Association) is backing up those assumptions with research. Here's a look at some of CompTIA's latest findings about the MSP industry.
According to a CompTIA press release issued today:
- Though profits from both groups have been negatively affected by the economy in the past year, managed services providers have been better able to generate cash flow, avoid wild quarter-to-quarter fluctuations in income and generally out-performed traditional technology resellers.
- The top managed services providers surveyed tended to hold their profits longer even as the economy headed down; and began their recovery sooner, the survey revealed.
Recession Impacts Everyone
I think that first bullet point above deserves a second and third reading. Notice that CompTIA is stating that MSPs -- like traditional resellers -- have been negatively affected by the recession. However, MSPs are generally performing better than their traditional channel rivals.The key takeaway: Anyone who suggests the managed services market is "recession proof" is out of touch with today's channel and today's economic realities. The MSP model is sound, but true success comes down to how well MSP executives run their businesses.
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