IT Service Providers and MSPs by Revenue Study – How Does Your Organization Compare to the Competition?
Paul Daigle
MSP | MSSP | IT Services Channel Ecosystem Expert | Board Member | Mergers and Acquisitions | Private Equity | Capital | IT Services Industry Author | 6x Founder | 14 Exits | Host & Guest Speaker
This report was created by identifying “IT Services Providers” and what tools they use to service their clients.??The IT Service Providers referenced are Managed Service Providers (MSP) and Managed Security Service Providers (MSSP). The service providers all use similar tools. The tools referenced in the study were Professional Services Automation (PSA), Remote Monitoring Management (RMM), Security Operations Center (SOC), and ancillary tools.
Through this report, we will be referring to the Business Evaluator. The Business Evaluator can be requested by contacting Paul Daigle directly.
Some important things to notice when referring to the chart - other than in what peer group your organization fits.
1.?????The majority of the “IT Service Providers” are in the $3M Peer Group.
2.?????Most employees per “IT Service Provider” are in the large organizations in the $500M+ Peer Group, Like DELL, Microsoft, etc.?
3.?????An “IT Service Provider” does not get noticed until there is above $600k in revenue. That is because, at less than $600k in revenue, you are still putting the necessary pieces together to build and keep your business sustainable. (Refer to the business evaluator Peer Group Chart for what the business is doing well and what the business needs to concentrate on to move up to the $1M peer group.)
4.?????Peer Group $3M and above Employees.
At this level, the organization has:
a.?????Employee procedures and Key Performance Indicator (KPI) are well defined, monitored, and referenced
b.?????Established and gained market(s) share
c.??????The organizational revenue and profit per employee are much larger and even increase as the organization excels through the peer groups. (Not in this chart, but in the Business Evaluator)
5.?????Peer Group $6M to $12M
The ratio of employees to organizations is almost 2 to 1?
6.?????Peer Group $25M and up
The ratio of employees to organizations gets to be 12 times more
Conclusion:
The higher the peer group the more sustainable your organization will be in the long haul. Not only is sustainability a factor, but your organization has a much higher evaluation. For example, if you are generating $200k in revenue, you may get one to two times business evaluation. When you are in the $25M Peer group you may triple and much more your business evaluation.
领英推荐
Want to know more about this study, or trying to figure out what your firm is worth? Contact Paul Daigle for a no-obligation conversation and the FREE Business Evaluator tool.
Paul will offer a Free “Back of the Envelope” Business evaluator and a 30 Minute strategy session. Click on the link to schedule ?https://bizadvisoryboard.bookafy.com/service/30-min-Strategy-Session?locale=en
?About Paul Daigle
A seasoned technology CEO and Board Chairman experienced leading businesses pivoting due to secular decline in their core business or challenged to identify and execute a transformational strategy to catapult new growth areas. A proven track record of increasing shareholder value through developing strategic plans, building high-performance cultures, and enhancing operational efficiency in turnarounds, stand-ups, and high-growth situations. Paul has managed 1,000+ organizational/strategic reviews with budgets exceeding $140mm and assets of over $800mm
About BizAdvisoryBoard.com
Specializing in helping the high-tech IT industry scale to the next level (peer Group). Accelerate through their current peer group to achieve growth and scale.
?Coaching businesses through the issues and tribulations related to each peer group. At times we get into the trenches, identify what is why the business is not performing and recommend what needs to be adjusted, divested, concentrated on, and place interim experts to get them to their next peer group.
We provide a business evaluator that provides a blueprint for scaling your business to the next level, and the blueprint will establish your peer group and advise you on what you need to do (people and budget) to accelerate to the next level.?
About MSPTag.com
A free resource for IT Service Providers to engage with vetted business professionals that know and understand the IT Services Industry.?Specifically helping MSP, MSSP, UCAAS, SaaS IT Service Providers, etc. This group of vetted consultants eliminates the need of having Executive and VP staff in-house.
?The MSP Trusted Advisor Group is the quickest way to grow, scale and accelerate your business past your peers.?Gain exclusive access to tried and tested professional providers that will transform your business in the areas of marketing, business, operations, standards, capital, attorneys, and HR.?Join our roundtable of experienced MSP executives.?? ?
?“The MSP Trusted Advisor Group - Strategy, Execution, and Accountability.” ?
MSP | MSSP | IT Services Channel Ecosystem Expert | Board Member | Mergers and Acquisitions | Private Equity | Capital | IT Services Industry Author | 6x Founder | 14 Exits | Host & Guest Speaker
2 年If you liked the revenue study and you are an MSP or MSSP or a SOC check out the New CMMC article I just posted on LinkedIn.?Pay attention to the MSP section (GAP Mitigation) - a windfall for MSPs.?No better time to be an MSP than when you have the government dictating to all of its suppliers that they need to have a good Cyber Security score to keep and attain additional federal contracts. https://www.dhirubhai.net/pulse/3-distinct-organizations-services-customer-nist-standard-paul-daigle/
Chief Information Officer (vCIO) at Cutting Edge Network Technologies
2 年Informational Paul, thank you for sharing.
Fone AI is a white-label generative AI agent platform for telephony
2 年Insightful article Paul Daigle. Expecting more from industry stalwarts like you to guide us!
CEO, Eureka Performance Training. Sales Conversation Specialists | Author | Key Note Speaker |
2 年Great analysis and good information on where they (MSP) are in regards to the gross revenues, business challenges and valuation.
Partnering with Business & IT Leaders for AI-Driven Business Transformation | Advocate for CX, EX, AI Automation, AI Agents, Conversational AI, Generative AI, Digital, Data and Cloud Solutions | CEO at Pronix Inc
2 年very helpful insights.