Cybersecurity, Cloud Services Lift Insight Enterprises Atop MSP 501

Managed services led Insight Enterprises to profit in 2023 despite a decline in overall revenue.

Dave Raffo, MSP News Editor

June 26, 2024

6 Slides

Although the overwhelming majority of Channel Futures 2024 MSP 501 winners are private companies, No. 1 Insight Enterprises is public. That gives us a look at its financials, which provide insights, if you will, into Insight’s 2023 successful managed service business.

Insight, a solutions integrator, gains a minority of its revenue from services; yet, services make up the fastest growing parts of the business and helped increase profits in 2023 despite an overall revenue drop, particularly in hardware sales.

Key 2023 full year metrics include:

  • While net sales of $9.2 billion declined 12% year-over-year, services net sales of $1.5 billion increased 4.4%.

  • Services gross profit increased 12% to $897 million.

  • Gross profit for cloud increased 26%, to $429 million, and Insight Core Services increased 8%, to $273 million. Both of those figures were company records.

  • A big reason for the bump in cloud services came from Insight’s $410 million acquisition of SADA last December, giving the company a strong Google Cloud Platform play to go with its established Microsoft cloud business. The SADA business contributed little in 2023, but is a key reason Insight forecast its cloud gross profit to grow more than 35% year over year in 2024, to go with more than 20% growth in Core Services.

“Our strategy is we're going to bring the best of the technology of our partners, and we're also going play in the systems-integration world, which is about ever tighter relationships with our clients to bring you incredibly high value,” said Stephen Moss, Insight’s SVP of managed services. “That's what we know we have to execute every single day.”

Insight Enterprises' Stephen Moss

Insight Enterprises Soars in MSP 501

Channel Futures caught up with Moss to discuss the drivers of Insight’s 2023 success.

Channel Futures: What was your biggest managed services growth area in 2023?

Stephen Moss: Security has continued to grow rapidly this last year in the managed service space. That’s no surprise. The concerns are there, and the magnitude of the need is just so large that any security in the managed security space is growing quickly. I would say that trend is here to stay. And with security, you get the halo of other things that need to be managed, patched, whatever the case may be.

Read the rest of our discussion with Moss around cybersecurity, AI, Broadcom-VMware and more in the slideshow above.

Read more about:

VARs/SIsMSPsMSP 501

About the Author(s)

Dave Raffo

MSP News Editor, Channel Futures

Dave Raffo has written about IT for more than two decades, focusing mainly on data storage, data center infrastructure and public cloud. He was a news editor and editorial director at TechTarget’s storage group for 13 years, news editor for storage-centric Byte and Switch, and a research analyst for Evaluator Group. In addition to covering news and writing in-depth features and columns, Dave has moderated panels at tech conferences. While at TechTarget, Raffo Dave won several American Society of Business Publication Editors (ASBPE) awards for writing and editing, including for column writing.

Raffo covers the managed services industry for Channel Futures. His reporting beat includes the MSPs, key vendors and tech suppliers with managed services programs, platform providers, distributors and all key players in this sector of the market. Dave also works closely on the Channel Futures MSP 501 and our live events.

Raffo has also worked for United Press International, EdTech magazine, Windows Magazine and Data Center Intelligence Group (DCIG) in reporting, editing and research analyst roles.

Free Newsletters for the Channel
Register for Your Free Newsletter Now

You May Also Like