MSP budgets surge to address rising IT demands, finds report
Thu 1 Feb 2024
A recent report by ETB Technologies highlights a significant increase in budgets and spending by managed service providers (MSPs) to accommodate the growing demands for enterprise IT.
With 80% of MSPs boosting their IT budgets, 67% have doubled their budget size with the remaining respondents (27%) saying they had increased their budget by as much as 60-70%.
There are a number of reasons why spending is on the up. Growing industry costs, increased security threats, and structural change are just a few examples.
While the change in budgets is significant, the report found that cost-efficiency, quality, and service are key strategic considerations.
The Rise of Refurbished IT Equipment
The report, titled ‘A changing tide – booming MSP budgets and the role of refurbished IT’, reveals a strong trend towards the adoption of refurbished IT equipment among MSPs.
Currently, 30% of respondents are purchasing refurbished technology, while a notable 84% have done so in the past.
Nick Stapleton, Managing Director at ETB, said: “The past few years have been particularly challenging for the IT industry. The impact of the pandemic, Brexit, geopolitical and economic turbulence, climate change, and supply chain disruptions.
“Despite these challenges, spending is on the up but budgets are having to spread further than ever, making maximising value for money vital,” he said.
The report also delves into the strategic shifts within IT, particularly the move towards hybrid cloud strategies in the post-pandemic era. This shift is accompanied by an increased demand for enterprise IT equipment, with 80% of respondents noting a rise in demand.
Additionally, the trend of declouding is gaining momentum, with 62% of MSPs considering or already undertaking the process.
Stapleton further emphasised the growing acceptance of refurbished technology due to its cost-effectiveness, environmental benefits, and reliability.
“As common misconceptions of refurbished equipment begin to dissipate, it is encouraging to see so many MSPs embracing this technology in today’s climate,” said Stapleton.
This report sheds light on the challenges and trends within the MSP sector, focusing on spending, sustainability, IT strategy, and the role of refurbished technology in current IT practices.