The Average Managed Service Provider: $3.9 Million In Revenue

There are roughly 8,000 managed service providers in the United States, and the typical managed service provider generates $3.9 million in annual revenue.

Here are some other fast facts about typical MSPs, according to a presentation delivered today at the Ingram Micro Seismic Partner Conference in Chicago.

There are roughly 40,000 U.S. solutions providers -- and roughly 20 percent of them (about 8,000) are MSPs. The typical MSP:

  • Generates $3.9 million in annual revenue, 79% of which comes from MSP services.
  • Has 25 employees.
  • Generates $450,000 in pre-tax net income.
The information comes from Service Leadership Inc.'s 2007 Solution Provider Profitability Study. Michael Minnich, president and CEO of NetGain Information Systems, shared the data points above during a presentation Tuesday morning. (Full disclosure: I missed the presentation because of flight delays but received a copy of Minnich's presentation.)

Generally speaking, I think the data points above are pretty reliable. Still, I often hear from vendors that there are roughly 80,000 to 120,000 solutions providers in the United States. The 40,000 figure sounds low to me.
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.