IDC has a seemingly bold statement – the MSP market will never return to its pre-COVID-19 ways of doing business. That’s from Stuart Wilson, research director, European partnering ecosystems.
Quoting Channel Futures: “The most important point is to accept we are never going back to how things were pre-COVID-19,” he said.
The economic situation – and the competitive MSP landscape – will encourage customers to renegotiate prices, Wilson said. MSPs will see customers asking for new, more favorable contract conditions.
Gartner, meanwhile, has made a major revision to their growth forecast for 2021, up to 8.4 growth in 2021. Device spending leads the way, followed by enterprise software, IT services, data center systems, and communication services. This is a significant revision from the numbers released just three months ago.
Why do we care?
I love a good analyst bold statement and try to make them myself. This one is a bit of an obvious one – of course things aren’t going back to the way they were. Now, I do care because of the outcome. Customers asking for new, more favorable contract conditions.
Couple that with ever continued spending and you get… more pressure to deliver. And deliver on business outcomes. The analyst doesn’t go into detail on those conditions, so I’ll add my take. It’s about more flexibility to the terms, and it will be more about how success is measured. Those are obvious statements based on what we’ve covered prior… it just doesn’t make it less important.