I'm not suggesting managed service providers are immune to the economic turmoil, but here's a piece of good news all MSPs should note: DirectPointe, ranked No. 1 on last year's MSPmentor 100 list, announced record-setting revenue for its third quarter. How does that compare with other MSPs? Here's the scoop.
According to DirectPointe President and CEO Michael Proper:
"Tighter economic times create a compelling event to use our services. Business owners are looking for better ways to manage costs and results in all aspects of their business. IT outsourcing is a strong option. As they evaluate IT outsourcing providers, business owners want a trusted partner with staying power, ensuring their managed service provider is stable and will be around for years to come."Plenty of MSPs have made similar "positive economic spin" statements to me. But Proper is backing it up by crowing about his revenue growth. That's smart. As a privately held company, DirectPointe can carefully choose how to disclose its revenue and sales success. During the current economic climate, it's the perfect time for Proper to tell the world about DirectPointe's momentum.
The Guy Never StopsAs you may recall, Proper is among the most aggressive MSP industry executives I've met. And I mean that in a positive way. I'm also intrigued by DirectPointe because the company has built its business on open source.
Despite the economic turmoil, DirectPointe's business remains strong. Consider these milestones:
- DirectPointe's customer base covers all 50 states and 29 countries.
- Q3 revenue reached the highest quarterly mark in DirectPointe's eight-year history.
- The company's latest quaterly results involve growing sales to established AND new customers.
- The company's business model leverages centralization, standardization and economies of scale (in other words: open source on x86). The results, Proper claims, are greater cost savings and reliability than most companies can expect from in-house IT staff or independent IT vendors.
Reality CheckSo, are all MSPs enjoying similar success? Certainly not.
I'm starting to hear about small MSPs that are struggling amid the bad economy. And I believe 20 percent of all MSPs will rise to dominate 80 percent of the manged services market -- a theme N-able VP Mike Cullen discussed with me last week.
We're all in for a bumpy ride. But the best MSPs will break away from the pack during these challenging times.
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