<aside> 💡 This post will summarize the contents of the 'MSP Business Environment Change 2024' report issued by Barracuda Networks in June 2024.
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The managed service provider (MSP) market is rapidly evolving. As digital transformation and cloud adoption accelerate, the role of MSPs is becoming increasingly important. At the same time, artificial intelligence (AI) is having a significant impact on MSP businesses. Based on Barracuda's "2024 MSP Market Trends Report," let's examine the key trends and response strategies in the MSP market from an AI perspective.
The MSP industry is expected to maintain steady growth in 2024. The average revenue of surveyed MSPs is projected to increase from $27 million in 2023 to $29 million in 2024. In particular, the share of managed services revenue is expected to grow significantly from 34% in 2023 to 44% in 2024.
This reflects the trend of companies reducing internal IT resources and increasing their reliance on MSPs. 92% of respondents said that their customers are reducing internal IT staff and requesting more technical support from MSPs. Demand for managing complex IT environments, cost efficiency, and 24/7 support is driving MSP growth.
AI is becoming an essential element in the MSP industry. 95% of respondents are either already providing AI services (58%) or planning to introduce them within the next 12 months (37%). This is because AI can provide various benefits such as cost reduction, automation, enhanced security, and 24-hour support.
Key areas of AI utilization include: