Latest / Business of Tech: Daily MSP News & IT Services Analysis
MSPs Face Profitability Challenges as 18% Operate at a Loss; OpenAI and CrowdStrike Innovate AI
Managed service providers (MSPs) are facing significant challenges as recent data reveals that 18% are operating at a loss, a concerning increase from 14% in the previous quarter. While overall managed service revenue growth has slowed to just 1%, profitability remains relatively high, with an average EBITDA of 11.1%. However, the decline in services revenue, particularly among value-added resellers (VARs), indicates a potential shift in client spending habits, raising questions about the sustainability of traditional service contracts. This trend suggests that clients may be reverting to…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.