ChannelPro's Annual Survey Reveals IT Solution Providers Expect Growth Despite Headwinds
ChannelPro's 2023 State of the Channel Survey finds that respondents are generally optimistic about their own prospects for 2023 though recognize a challenging economy.
FRAMINGHAM, Mass., March 10, 2023 /PRNewswire-PRWeb/ -- The ChannelPro 2023 State of the Channel Survey finds that a majority of managed service providers, VARs, and IT solution providers are generally optimistic about their own prospects for 2023, and in fact expect to do better than overall market conditions.
According to the annual survey, which offers the technology industry's most authoritative view of trends and attitudes among providers of IT services to small and midsize businesses, revenue and profit growth slowed somewhat in 2022, but overall channel pros are still doing well. And 87% of respondents believe that revenues will remain stable or improve over the course of 2023, with 86% expecting the same for profits.
Other financial and revenue highlights include:
- 49% of respondents expect greater revenue in 2023 and 45% expect the same for profits
- 59% believe market conditions for their company will be better this year, compared to 42% who expect better conditions for the overall economy
- 43% expect to hire additional staff, with 52% holding steady on staffing
- 55% predict higher IT spending by their customers this year, down from 73% last year
- 38% believe their personal income will be up in 2023, a drop from 46% last year
"This year's data suggests that the challenges of the post-pandemic workplace, high inflation, geopolitical instability, and lingering supply chain disruptions have somewhat dampened the exuberance respondents expressed in last year's survey," says Michael Siggins, president and publisher of The ChannelPro Network. "Still, IT solution providers play a pivotal role in helping small and medium businesses adopt new and emerging technologies that will give them competitive advantage now and in the future, and the respondents' growth expectations for this year reflect that."
The ChannelPro 2023 State of the Channel Survey also reveals some industry trends:
- Managed Services. Among respondents, 67% provide at least some managed services, and 30% derive half or more of their revenue from those services, which 34% identify as high margin.
- Security. Seventy-two percent of respondents offer anti-virus, anti-spam, network protection, or other security services, with 24% reaping a high margin. In addition, 56% offer managed security, which 35% cite as high margin.
- Cloud. Currently, 58% of respondents offer cloud computing consulting/deployment/migration services, with another 19% planning to. Still, 62% of respondents derive less than 25% of revenue from cloud computing, though 40% expect that share to increase in 2023.
Hiring and Salaries. While IT hiring and retention is still a challenge, 43% of respondents expect to staff up this year. In terms of wages, 50% expect them to hold steady for salespeople and techs, with 38% and 41%, respectively, expecting pay to rise.
M&A. Three-quarters of IT business owners (76%) have no plans to sell, buy, or merge their company this year, and only 25% plan to execute an exit strategy in the next one to three years.
"The ChannelPro Network audience reflects the pulse of the industry, and this year's annual survey results show that the channel's necessity to SMBs, and ability to adapt, make it resilient and vital," concludes Siggins.
The ChannelPro 2022 State of the Channel Survey was conducted online from July to October 2022, and was open to everyone in The ChannelPro Network email database. About 56% of the respondents are MSPs, 32% are VARs, and 21% are custom system builders. For more results and analysis, go to https://www.channelpronetwork.com/
About the ChannelPro Network
The ChannelPro Network provides targeted business and technology information for the IT channel. Via ChannelPro-SMB magazine, live and online events, and our online properties, the network delivers expert opinion, analysis, news, product reviews, and advice vital to an IT solution provider's business success. Perspectives from VARs, vendors, distributors, and analysts are spotlighted daily. No other media company focuses on the small and midsize marketplace like The ChannelPro Network. Learn about our events for IT decision makers here: https://events.channelpronetwork.com/
Media Contact
Michael Siggins, ChannelPro Network, 1 3392252352, [email protected]
SOURCE ChannelPro Network
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