MSP budgets up by as much as 70% to meet growing IT demand

Managed service providers (MSPs) are increasing their spending by as much as 70% to meet growing enterprise demands, according to a new report from ETB Technologies. While 80% of respondents have increased their budget spend overall, 67% have doubled (50%) their budget size with the remaining respondents (27%) saying they had increased their budget by as much as 60-70%.

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Refurbished IT equipment remains popular with MSPs. Almost a third (30%) of respondents said they currently buy refurbished equipment with 84% saying they had bought refurbished tech at some point in the past.

The report, A changing tide – booming MSP budgets and the role of refurbished IT, explores the current trends MSPs are seeing when it comes to spending, sustainability, IT strategy, cost and the use of refurbished technology.

The report also shares insight into an almost universal shift in IT strategy which, post-pandemic, has seen many move towards a hybrid cloud strategy. The research revealed more than three-quarters (80%) of respondents said there has been an increase in demand for more enterprise IT equipment. As more businesses take data management back in-house, the shift to a hybrid cloud strategy is prevalent with many (62%) MSPs having already considered or began the process of declouding.

Nick Stapleton, Managing Director at ETB, said: “The past few years have been particularly challenging for the IT industry. 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. Despite these challenges, spending is on the up but budgets are having to spread further than ever, making maximising value for money vital.”

“There’s a number of reasons why spending is on the up. Growing industry costs, increased security threats, and structural change are just a few examples. While the change in budgets is significant, what’s clear from our research is that cost-efficiency, quality and service are key strategic considerations. 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.”

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