From the rapid rise of AI and automation to MSP exit strategies, our MSP Success reader survey results throughout the year offered a snapshot of where the industry stands—and where it’s heading. Here’s a look at what you told us about the 2024 MSP trends and challenges and your expectations for next year.
AI and Automation: The New Frontier for MSPs
AI and automation were dominant themes in 2024, with many MSPs harnessing these technologies to streamline operations and boost efficiency. In our AI and automation reader survey, 71% of MSPs reported using automation for routine tasks like patch management and backups. Ticketing tasks (58%) and marketing activities (46%) followed closely behind. These tools are freeing up valuable time and resources, allowing MSPs to scale their operations without adding more staff.
The benefits are clear. Sixty-six percent of survey respondents cited automation as a way to scale their businesses, while 76% noted increased efficiency. Lower labor costs (40%) and more consistent results (26%) were also significant advantages. For those who are using AI, it’s primarily being used for scripting (36%), customer communication (56%), and marketing tasks (49%). However, 17% of MSPs are still hesitant, either due to lack of trust or concern that AI is just a passing trend.
For all the results, and some input from your peers on their AI and automation journey, read the full report here.
MSP Exit Strategies: A Split Decision
When asked about their future plans in our M&A survey, MSP business owners were almost evenly divided. Forty-eight percent intend to sell their businesses in the next 3-5 years, while 52% plan to hold on. Among those looking to sell, a poor valuation is the top deterrent, while a higher cash offer could convince others to reconsider.
For those planning an exit, preparing the business is crucial. Even if you do want to sell, that may not happen if you’re not a best-in-class business, says Paul Cissel, who’s founded and successfully sold three businesses and now advises MSPs on M&A. He’s also the M&A expert in residence for TMT. “Only 30% of the businesses that go on the market actually sell,” Cissel says.
Actions such as cleaning up financials (53%) and securing transferable customer contracts (28%) are key steps to getting market-ready. Many owners are also seeking advice from M&A experts to ensure a smooth transition.
Once the sale is complete, many MSP owners are looking to stay involved in the business in some capacity—whether through consulting, working for the acquiring company, or starting something new. But it’s clear that planning for life after the sale involves more than just financial considerations; it’s about finding a fulfilling next chapter.
If you’re on the fence about your exit strategy, read the full story to see what other MSPs are planning and get some advice from our M&A experts too.
Managing Stress: The Pressure of Running an MSP
The stress of running an MSP is real, with 36% of MSP owners reporting a high level of stress. The biggest concerns? New customer acquisition (64%), cybersecurity (31%), and organizational inefficiency (35%). Yet, MSPs are learning to manage their stress by relying on their teams and building systems that provide a sense of control.
Productivity is key to handling stress, with 44% of MSPs rating themselves as “pretty good” at managing their time and tasks. The most common wish to reduce stress? More inbound leads (32%) and better client acquisition strategies (29%). Many owners also emphasized the importance of a strong, self-sufficient team to relieve pressure.
Stress comes with the territory of running any business. However, MSP business owners have been able to put it into perspective. Find out how they’re doing it and get all the survey results here.
Boom, Bust, Or Business As Usual For MSPs in 2025?
As we look to 2025, MSPs are generally optimistic. On the overall economic outlook and business climate for 2025, 95% of readers are optimistic. And a whopping 98% of reader survey respondents expect revenue growth, and 96% expect profit increases. Cybersecurity, managed services, compliance, and co-managed IT are expected to be the most lucrative areas for growth.
Marketing strategies will continue to evolve, with half of MSPs anticipating that digital marketing will become the leading driver of new business in 2025, surpassing referrals. Additionally, automation, cybersecurity, and AI consulting are seen as major opportunities for growth, while challenges such as low-priced competitors and staffing will remain persistent.
So despite economic uncertainty, inflation, election year plot twists, extreme weather, war in several countries, and for some managed services providers, a slowdown in MSP sales, overall you tell us you are optimistic. Find out all the details on why you feel that way here, plus we include what some of our MSP Advisory Council members have to say about the results.
No Crystal Ball, But Good Vibes Ahead
Our reader surveys are, of course, a small representation of the $500 million-dollar global MSP industry. But there’s no doubt that MSPs will play an essential role in the digital transformation of small and medium businesses. While challenges like cyberthreats and competition remain, the data suggests there’s a lot to look forward to. It’s clear, though, that the most successful MSPs will be those that continue to adapt, innovate, and deliver impactful results for their clients.
