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 Channel Futures

MSP 501


2022 MSP 501 logo feature image size

The 2022 MSP 501 List Revealed: It’s a New Channel, and a New Ranking List

  • Written by Allison Francis
  • June 13, 2022
Companies included on this list represent some of the most innovative and influential market leaders around the globe.

It’s a great time to be an MSP. With no shortage of demand, a broad array of services to offer and businesses needing to manage the complexity and scope of core business functions, IT services are in demand more than ever before. In this spirit, we are thrilled to officially present this year’s MSP 501 class of 2022. 

In such a hot market, MSPs on our 2022 MSP 501 list are not only surviving, but also thriving and growing. This year’s crop of 501ers aren’t simply adding more customers, seats and endpoints under management, they have realistic, actionable business plans aligned with their capabilities and their owners’ own personal goals.

Key Data Points Show MSP 501 Value

Out of the data we collected from our 501 applicants this year, several key findings rose to the top. 

The dominant managed services that were reported were managed security, BDR, help desk, remote monitoring (which includes servers, desktops, laptops and networks), and managed email / anti-spam. Over 90% of the 501 reported these elements, which is significant.

When asked what partners see as their biggest growth areas in 2022, not surprisingly, security was at the very top, at 89%. This includes endpoint, network, enhanced network monitoring, end-user security training, etc. Coming in close behind security was cloud migration, Office 365, professional services and compliance. ​

Revenue growth rates for 2021 over 2020​ for our 501 managed service providers painted a picture of MSP maturity. Total revenue came in at 15%, recurring revenue topped with 18%, and profit came in at 15%. All elements have shot up, making this 15-18% growth rather significant. The recurring revenue jump in particular once again speaks to the evolution of the industry, going to the contracted 24/7 helper model.​

Evolving the 2022 MSP 501

Companies included on the 2022 MSP 501 list represent truly innovative and influential market leaders providing managed services to today’s most demanding customers around the world. These organizations stood out among an astounding number of applicants (the most applicants submitted since 2017). They are a cut above in terms of their technical talent, growth-oriented business models and strategic partnerships. 

We launched the list about 16 years ago, and it has moved from a competitive list into a mammoth program that’s filled with benchmarking intelligence, education, community discussions and networking opportunities. 

It’s a list that has evolved along with the market because it is a mirror of the industry.

This is not just a research project that tallies up a solution provider’s individual revenue or profit in some arbitrary way. The MSP 501 takes a deep dive into the managed services and recurring revenue that these organizations generate. 

What we get as a result is a community of nimble, innovative and strategic MSPs that truly represent where the needle is moving in the industry.

Top Takeaways

The overall metrics — and especially company performance metrics — provided by partners give everyone in the industry an inside look at what makes the MSP industry so special. The data also allows us to compare MSP performance and honor those shops that edged out the competition. This list is used by leading vendors and distributors to understand the channel better. 

A few of the key nuggets from the data that partners to provided: 

  • We had a record number of applicants this year, demonstrating the value in being positioned an MSP​
  • 22% of our winners are either minority-owned, woman-owned, millennial-owned, etc.​
  • MSP 501 aggregate revenue was $21 billion​
  • Total employment: 77,343 ; median of 32 employees per company, up 14%​
  • Average revenue per MSP 501: $42 M (17% growth YoY); Median: $5.75 M​
  • Total recurring revenue: $11.6B; Median: $3.5M​
  • For the average MSP 501er, recurring revenue grew 20%​
  • Of the 501 list, 364 are repeat winners from the 2021 list

Let’s take a deeper dive into some of these key takeaways. 

Standout Revenue-Producing Solutions

In the last 12 months, the managed services that rose to the top in terms of revenue-producing solutions were help/service desk, and managed security. This increase shows just how pervasive information security services are when it comes to the health of the tech channel. 

To support this, the top revenue-producing solutions of the 501 winners included help/service desk (69%) and managed security (65%). These are today’s…

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Tags: Cloud Service Providers MSPs VARs/SIs Business Models Channel Research Mergers and Acquisitions MSP 501 Strategy

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