The annual ChannelPro State of the Channel Survey has revealed that 40 percent of participants had higher revenue in 2021, up from 35 percent in 2020, while 42 percent had higher profits, up from 37 percent. So, a majority of MSPs, VARs, and IT solution providers are optimistic about the year ahead, as revenues and profits continue a steady recovery from the impact of the two-year worldwide pandemic.
“This year’s data suggests that the indisputably indispensable role technology now plays in the world of hybrid work and digital everything has translated to boom times for channel pros, many of whom see even better times ahead,” said Rich Freeman, ChannelPro executive editor.
Other channel-related financial and revenue highlights include:
- In 2022, 64 percent of respondents expect more revenue and 60 percent expect higher profit
- Market conditions will be better for their own firm this year, according to 69 percent of respondents, and 35 percent say they will be substantially better
- Customers are expected to spend more money on IT this year, according to 73 percent of respondents
- In 2022, 46 percent of people anticipate their personal income will increase (versus 30 percent a year ago)
ChannelPro’s State of the Channel Survey 2022 also identifies the following industry trends:
Managed Services – Nearly three-quarters of respondents (73%) supply at least some managed services, compared to 64% last year. Managed services now account for half or more of yearly income for 34% of respondents, up from 20% a year earlier, and 51% predict managed services to contribute for even more revenue in 2022.
Cybersecurity – Anti-virus, anti-spam, network protection, and other security services are offered by 80 percent of respondents, up from 63 percent in last year’s poll, and 23 percent have significant call margins on security services, compared to just 18 percent previously.
Cloud – Work-from-home models are still in demand, with 77 percent of respondents offering WFH services in 2021, up from 67 percent the year before. Furthermore, 61 percent provide Microsoft 365 license, up from 58 percent last year, and 62 percent give cloud consulting, setup, and migration services, up from 58 percent. Despite this, cloud services would continue to contribute little to the bottom line, with three-quarters of respondents reporting that the cloud accounts for less than 25 percent of their income.
Hiring and Salaries – Respondents are fully aware that this year they will have to compensate new hires and existing employees more generously. Half of respondents plan to pay technicians more (compared to 31 percent last year), 44 percent expect to pay salesmen more, and 30 percent expect to pay administrative personnel more.
“The ChannelPro Network audience reflects the pulse of the industry, and this year’s annual survey results show that the heartbeat of the channel is strong and healthy,” said Michael Siggins, president and publisher of The ChannelPro Network.
The ChannelPro 2022 State of the Channel Survey was conducted online from September to October 2021. It was open to everyone in The ChannelPro Network email database.
The ChannelPro Network provides targeted business and technology information for the IT channel. The network provides professional opinion, analysis, news, product evaluations, and guidance to IT solution providers through ChannelPro-SMB magazine, live and online events, and its online properties.