• contact@compubase.net
  • +33 169 183 434

MSP - Managed Service Provider ... the most debated IT acronym?

We were recently asked by one of our clients, a top gun from the service business, to carry out a survey to help find addressable markets for their Cloud Solutions.

We all understand that our industry has a fondness for acronyms. Acronyms serve as a significant tool for marketers aiming to refresh an old idea, product, or solution with new features. We won’t delve into why the industry operates this way, but it’s important to highlight the risks associated with using terms whose definitions haven’t been universally established and accepted.
One question from our client revolved around recruiting MSPs. They weren't referring to the Wikipedia, IBM, or IDC definitions of MSPs, but to their own unique definition.
Let's be clear: if consulting firms strive to define a term, it's for the purpose of that definition being utilized. Language exists to facilitate communication with a shared understanding of words... well, most of the time, at least. If a car is universally recognized as a car (Tesla notwithstanding), can the same be said for what constitutes a Cloud?
Thus, we engaged in extensive discussions about those three letters: MSP. Many vendors attempt to encapsulate all their aspirations and expectations within these three letters, much like VARs did in the 80s, even though no one has ever self-described their activity as “VAR.”
The acronym MSP is like the acronym VAR, it denotes not an activity, but a quality: the quality to sell or resell digital solutions as ongoing services.

There are various perspectives on what constitutes an MSP. Some believe that anyone reselling something consuming IT resources as a service qualifies as an MSP, encompassing ISV-SaaS providers. On the opposite end, some view MSPs solely as Cloud Providers or Cloud Service Providers. In between, there are those who consider resellers of third-party Cloud/SaaS services as MSPs.
From our client's inquiry, it's generally observed that MSPs typically (but not always) encompass the following categories:
  • Cloud Providers / Cloud Services Providers
  • Managed Services Resellers
Occasionally, it also includes ISVs offering their solutions as SaaS with additional services such as data hosting.

How many MSPs in Europe? How many MSPs in Middle East? How many MSPs in Africa? How many MSPs in North America? How many MSPs in Latam?

Please note that the compuBase data does not cover 100% of the market, we cover 85 % of the the market revenue and between 50% and 80% of the locations

We ultimately arrived at this segmentation for Cloud Activities :

Cloud activity segmentation- active Cloud companies


In conclusion, when addressing a new or evolving market, avoid introducing a new acronym unless it has become standardized. Clearly define the attributes that partners should possess to collaborate with you.
 The acronym merely serves as a label; affixing a label to a box doesn't guarantee that the contents match the label.

Create your own company selections 
Try our online selection tool >>here


Channel Consulting | Data & Marketing Services | compuBase | Web Platforms & Services | Biz

Some of our clients

compuBase copyright © 2020