5 Insights from Service Leadership’s 2022 Industry Profitability Report

Here’s another big difference between top-flight MSPs in the Service Leadership study and everyone else: best-in-class performers derived 11.9% of their revenue from managed security last year, versus just 5.8% for the survey’s median participant and an even lower 4% for the bottom quartile.

Why do the most profitable MSPs sell so much more security than others? Because they don’t give their customers a choice in the matter, Kujawa says. Security is part of their core service bundle rather than an optional add-on.

“What we’ve seen in the past few years in the data is that the best in class are building more managed security into their full meal deal,” Kujawa explains. “The bottom quartile are continuing to manage security largely cafeteria style.”

Insisting that customers deploy a complete stack of protections results in fewer security incidents to remediate, Kujawa notes, and therefore higher profits. It also raises the sale price of your service packages. 

“Obviously, if you’re adding more things into your full meal deal, you’re also capturing more margin as a result,” Kujawa observes.