Short-Term Financial Gains

Mayron Herrera, founder and CEO of MSP Synetek Solutions, thinks that there are a number of factors at play in terms of the uptick of industry health confidence (as shown in the graph above).

“First, I think organizations are trying to finish out the budget they have for the year,” said Herrera. “In business, I don’t think that’s necessarily sustainable, I think it’s just an indication of that time of the year. In terms of the sentiment regarding the economy as a whole, I believe that inflation is scaring MSPs and other businesses alike. In our space, customers are getting tighter, they are demanding higher wages … the margins just keep getting smaller and smaller. There’s also the supply chain issue. We, and the U.S. more broadly, have had to adjust, just sell what’s available and not necessarily stick to our tried-and-true vendors. These issues haven’t necessarily impacted the confidence of the MSP space yet, clearly, but these are speculations for [the fourth quarter] and beyond.”

The other issue is that businesses are taking short-term advantage of financial gains for current projects. But long term, perhaps next quarter or the first quarter of 2023, those projects will dry up. 

“I think that reality is really going to hit — especially if things don’t change,” adds Herrera. “We may see that graph go down.”