Fact or Fiction: Bad Economies Are Great for MSPs

During the Ingram Micro Seismic partner conference last week, a managed service provider mentioned to me that his business region has 17 percent unemployment. Yet, the MSP claims his business is thriving. Is that too good to be true?

Stated another way: Are managed service providers somehow immune to the economic slowdown? I certainly don't believe that's the case. But over and over again, I'm hearing from managed service providers who seem to be holding up far better than traditional VARs in their local markets.

I think our next MSPmentor 100 survey, slated to launch in September 2008, will shed some more light on MSP financial trends. But I think we all need to try our best not to "hype" managed services as a recession-proof business model.

Some of the hype comes from the media (guilty as charged).

But some hype also comes from MSPs themselves. When dozens of MSPs are sitting side by side at a conference, they are inclined to say their business is going well. After all, nobody wants to be the one person in the room who isn't cashing in on managed services.

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