Managed Service Providers: Still Optimistic About 2009

Despite the recession, the vast majority of managed service providers expect their recurring revenue to rise dramatically in 2009, according to a real-time poll conducted during today’s MSPmentor Live: CEO Exchange Webcast.

We asked Webcast attendees the following question: In 2009, I expect my managed services revenue to…

• A) Substantially increase compared to 2008 (69.5% of attendees chose this answer)
• B) Slightly increase compared to 2008 (26.0%)
• C) Remain flat (0%)
• D) Slightly decrease compared to 2008 (0%)
• E) Dramatically decrease compared to 2008 (4.5%)

Those results are quite optimistic — perhaps too optimistic. But I also have to provide some perspective.

First, some MSP software providers attended the Webcast. Naturally, those software providers want more MSPs to jump into the managed services pool. So, I suspect the software providers themselves voted heavily for choice A.

Second, many MSPs are just getting started in the market. So, their 2008 managed services revenue base is relatively small — providing ample opportunity to show dramatic recurring revenue growth in 2009.

Despite those two factors, it’s good to see optimism in the managed services market. At MSPmentor, we maintain that no companies are immune to the recession. But there’s no doubting the MSP business model. It works.

If you missed the webcast, visit www.MSPmentor.net/events and you can view the archive starting December 15.

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