Insights from N-Able’s Inaugural Global Futurology Study

N-Able has launched its inaugural Global Futurology Study, the MSP Horizons Report, in partnership with Canalys. The report reveals that MSPs are experiencing solid growth, with 97% of those surveyed reporting managed services revenue growth. Key findings include the growth of cybersecurity-managed services, the embrace of a hybrid model, the importance of the traditional RMM, and the increasing use of AI.

I spent some time with the report, and here’s what I noted. 

The managed services segment in the channel is estimated to grow at a Compound Annual Growth Rate (CAGR) of 11% globally between 2024 and 2027.  

The North America and EMEA (Europe, Middle East, and Africa) regions experienced slight declines in the number of channel partners selling managed services, with decreases of 1% and 0.5%, respectively.   APAC grew 6.1% and Latin America grew 2.6%.

57% of MSPs surveyed plan to manage their customers’ IT in collaboration with the customers themselves or with other partners, indicating a shift in the traditional MSP model​​, and 71% of partners are moving or planning to move workloads back to on-premises and private data centers.

Despite the vast potential of data analytics, MSPs have yet to see substantial growth in this area. This is surprising given the current emphasis on big data across various industries and the potential value it can bring to businesses.

Despite the buzz around AI, the report reveals a “wait-and-see” approach among MSPs in certain areas. While AI is being used to improve efficiency in tasks like ticket reporting and script generation, its long-term role in cybersecurity and other critical IT services remains tentative, with a continued reliance on skilled professionals.  The report reveals that only 25% of MSPs surveyed use AI to develop their intellectual property.

The report notes the rapid growth of the cyber-insurance market and the complexities it introduces.   The cyber insurance market is valued at approximately USD 13 billion in the last full calendar year up to 2022. It is projected to grow at a Compound Annual Growth Rate (CAGR) of roughly 26% over the following eight years.

Finally, some data on sustainability.   The IT industry’s energy and resource consumption surpasses the airline industry’s. Regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) impose significant challenges for MSPs, especially in tracking and reporting emissions. Only 27% of MSPs in EMEA currently track their emissions across all three scopes​​.

Interestingly, while citing the growth of managed services, the number of partners in North America and EMEA selling managed services declined slightly.     Growing by revenue but not MSPs?   A question to ponder.

I’ve long cited data analytics as an opportunity and one required to get AI benefits.   There’s still room here; note that you need it for AI.  Wait and see… sure.    For some, zigging while others zag will be a crucial differentiator. 

The report has a section called “RMM is not dead.”  Should I feel singled out by my former employer (and, disclosure, a company I hold stock in)?  I kid, of course, but I want to highlight a disagreement.  N-Able states, “Devices and endpoints will still be part of the IT estate in the future, so RMM is not going anywhere,” while I agree with the first part, I disagree with the second.    This product space needs to evolve to autonomous IT and focus on a zero-trust configuration management approach.      

But maybe they secretly agree with me.  The section concludes that Unified Monitoring and Management is the rising star.   Thus, if you’re moving to something new… I dunno; that sounds dead to me.