In this episode of “The Business of Tech,” host Dave Sobel dives into the world of managed service providers (MSPs) and explores the challenges they face in maximizing their profitability. From leaving money on the table to declining services gross margin, Sobel uncovers the key factors that impact an MSP’s bottom line. He also takes a closer look at the transition to cloud technology and how it has affected profitability in the industry.
Dave welcomes Peter Kujawa from Service Leadership to discuss the Service Leadership Profitability Report. The report, which is about 300 pages long, provides valuable insights into the industry’s profitability. Peter explains that it goes beyond analyzing profit and loss, offering a comprehensive understanding of the industry’s financial landscape. Tune in to learn more about this informative report and its implications for businesses in the digital enablement space.
00:00 Intro
01:35 What is the profitability report?
03:41 Key market factors in 2022
05:28 Insights into why
08:37 Valuations of providers
11:13 Cynomi
12:10 Declining service gross margin
19:30 Cloud transition and profitability
23:50 Most intriguing data point
29:45 Getting a copy of the report
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