Top Areas for MSP Profits and Growth in 2023 According to Channel Pros: Page 4 of 5

Cashing in on Security Needs

Another hot area is both managed and conventional cybersecurity offerings. It’s no secret that attacks are becoming increasingly sophisticated and outcomes—particularly from ransomware and data breaches—can prove devastating. News media headlines have reported multimillion-dollar ransoms, as well as the release of highly sensitive information. Many SMBs have few internal resources to build a strong defense.

As a result, 51% of channel pros say they expect their security revenues to increase in 2023, and 44% believe revenues will hold steady. Moreover, 23% of polled firms say that half or more of their total revenues now derive from various security products and services. An additional 42% report that the revenue figure falls between 10% and 24%. The takeaway? Security is on everyone’s radar and savvy firms are cashing in. Indeed, managed security tops the list of high-margin offerings, according to 35% of respondents, up from 29% last year.

Looking Ahead

As more advanced digital technologies have emerged, there’s a fundamental need for organizations to build strategic planning assumptions into their business framework, according to Gartner. This includes a focus on things like technology, the economy, regulatory issues, and sustainability. It also includes a better understanding of value metrics rather than straight return on investment (ROI), and using AI and other tools to reduce carbon output.

What does this mean for channel pros? When we spoke to respondents about how they are approaching this environment, they indicated that upping the ante on knowledge, expertise, and acumen is important. It’s critical to become a trusted partner and thought leader, they noted. In addition, Gartner states that business leaders must also “sense and respond to disruptions and anticipate change” beyond conventional areas they are accustomed to focusing on. 

Several companies we spoke to said that embracing AI and automation capabilities is important. “AI will be a major force in the tech world,” states Ali Johnston, president of Bel Tech Services, a Satellite Beach, Fla., firm. “The focus for my firm this year is learning as much as we can about AI and how I can use it to help my customers and improve workflows in my own business. I believe we have entered an era of rapid advancement that we haven’t seen since the introduction of the internet and the dot.com boom.”

At Unique IT Pro, Velez is doubling down on building the firm into a center of expertise. “We are challenging the team to master solutions and become certified so that we can stand out as leaders. Knowledge is power and I am pushing to empower my team so that we can grow into an elite company,” he explained.