BURLINGTON, Mass. - N-able, Inc. (NYSE: NABL), in collaboration with Canalys, a leading channel analyst firm, today introduced the MSP Horizons Report, a comprehensive study providing insights into the managed services market trends for 2024 and beyond. The report, which is the first of its kind for the managed services sector, was revealed at the Beyond the Horizons event, featuring commentary from industry experts.
The research, conducted between October and November 2023, surveyed 354 business-to-business channel partners from regions including EMEA, North America, APAC, and Latin America. The study's findings indicate a robust growth trajectory for managed services providers (MSPs), with 97% reporting revenue growth this year and a projected compound annual growth rate of 11% through 2027. The global IT channel partners are currently generating $419 billion in revenue.
The MSP Horizons Report highlights several key areas of opportunity and challenge for MSPs. Cybersecurity managed services are experiencing significant growth, with over 80% of respondents noting an increase, particularly in managed detection and response (MDR), network security, endpoint security, and vulnerability scanning. Despite the rise of cloud services, 66% of MSPs are adopting a hybrid model, maintaining a balance between cloud-based and on-premises solutions.
The report also touches on the evolving technology stack within the MSP industry. Remote monitoring and management (RMM) tools remain central to MSP operations, with a call for more integrations, including embedded endpoint detection and response (EDR) and other security functions. Additionally, the use of artificial intelligence (AI) is prevalent, with 88% of MSPs incorporating AI into their toolsets, especially for content generation and automation in cybersecurity, backup, and data analytics.
John Pagliuca, President and CEO of N-able, emphasized the importance of the report in facilitating discussions that could lead to long-term success and transformation for MSP partners.
The MSP Horizons Report is based on quantitative data from an online survey and qualitative interviews, providing a well-rounded perspective on the current state and future of the MSP market. This information is based on a press release statement and does not include any promotional content or endorsements.
N-able is a global software company that provides IT service providers with tools to monitor, manage, and secure their customers' systems, data, and networks. Canalys, celebrating 25 years, continues its commitment to delivering channel-centric market intelligence and research analysis to the technology industry.
InvestingPro Insights
As N-able, Inc. (NYSE: NABL) continues to shape the managed services landscape, its financial health and market perception are integral to understanding its potential for future growth. With a market capitalization of $2.42 billion and a high P/E ratio of 102.82, N-able is a significant player in the technology sector. The company's gross profit margin impressively stands at 84.4%, indicating strong operational efficiency. Analysts have taken note of N-able's performance, with two revising their earnings upwards for the upcoming period, reflecting optimism about the company's profitability.
InvestingPro Tips suggest that N-able is expected to see net income growth this year, and its liquid assets are more than sufficient to cover short-term obligations, providing financial stability. Moreover, the company is trading at a high EBITDA valuation multiple, which may appeal to investors looking for companies with strong earnings before interest, taxes, depreciation, and amortization.
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