Don't Let MSP Consolidations Stress You Out!

There is a notable consolidation trend in the managed IT services industry. This consolidation is driven by several factors, including the increasing complexity of IT environments, the rising demand for specialized services, and the need for managed service providers (MSPs) to enhance their service offerings to stay competitive.

In 2024, merger and acquisition (M&A) activity within the MSP sector is expected to increase significantly, rebounding after a decline in 2023 due to economic uncertainties. This surge is facilitated by improving valuations and favorable economic conditions, encouraging both vendors and private equity firms to invest in MSPs.

The consolidation trend is also seen in specific segments like remote monitoring and management (RMM) and professional services automation (PSA), where segment software tools developers are considered high-demand acquisition targets.

Additionally, MSPs are expanding their service portfolios to include higher margin, sophisticated and costly offerings, such as cybersecurity management, cloud infrastructure, and compliance consulting. The growth in these areas is prompting smaller MSPs to merge or be acquired by larger entities that can provide comprehensive, end-to-end solutions.

Overall, the consolidation in the managed IT services market is a strategic response to the evolving technological landscape and the increasing need for integrated, high-value services. This trend is likely to continue as MSPs seek to enhance their capabilities and market reach.

Most SMB's struggle with affording the IT and cyber protections they know they need to protect their business and their employees' livelihoods. The larger the MSP gets the less attractive your business is to them. They need to lose you to take some of the drag off their margins.

Well, good news is here for Northwest Arkansas SMBs. TekTrendz is a Rogers based 17-year-old MSP with the IT management and cyber protection products you need, at a price you can afford. We are focused on SMB's in Benton and Washington Counties. If you are being cancelled by a mega-MSP or are just dissatisfied with the deteriorating relationship, we want to talk with you. We can help.