IT demand driving MSP budgets up by as much as 70%, latest research finds

New research from ETB Technologies has found that managed service providers (MSPs) are expanding their budgets by as much as 70% in a bid to meet surging enterprise demand.

The IT equipment supplier’s latest research report quizzed 250 leading MSP figures on current trends around spending, sustainability, IT strategy, cost, and the use of refurbished tech.

It found that 80% of respondents have increased their spending while 67% have doubled their budget size. More than a quarter (27%) of participating MSPs said they had ramped up their budget by as much as 60-70%.

ETB said the research highlights the impact that world events have had on the IT industry over the last few years, which have resulted in an “almost universal shift” towards a hybrid cloud-based strategy.

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“The impact of the pandemic, Brexit, geopolitical and economic turbulence, climate change, and supply chain disruptions – to name a few – have created a challenging business environment for the industry,” explained Nick Stapleton, managing director at ETB.

“Despite these challenges, spending is on the up but budgets are having to spread further than ever, making maximizing value for money vital.”

Stapleton said the resulting industry costs, increased cyber security threats, as well as wider structural change, have emerged as the key driving forces behind MSP spending hikes.

The survey found that 80% of participants have witnessed an increase in demand for more enterprise IT equipment, while 62% revealed they have considered or already begun the process of de-clouding as part of an effort to take data management back in-house.

As they look to maximize the benefits of their investments, many MSPs continue to look to refurbished IT equipment as part of their business strategies, the report found. 

According to ETB, almost one-third of respondents said they currently buy refurbed tech, while 84% said they had done so at some point in the past.

“While the change in budgets is significant, what’s clear from our research is that cost-efficiency, quality and service are key strategic considerations,” Stapleton said.

“Refurbished technology that is cheaper, more climate-friendly and just as reliable as brand-new equipment can play a huge role in the development and implementation of these strategies.

“As common misconceptions of refurbished equipment begin to dissipate, it’s encouraging to see so many MSPs embracing this technology in today’s climate.”