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Is the MSP Industry Experiencing a K-Shaped Recovery?

Are we in for a K-shaped recovery? Mass vaccination is showing us a light at the end of the tunnel economically. The MSP business has done reasonably well throughout the pandemic, but some observers have noted that the recovery, both overall and in the MSP space, has the potential to be a k-shaped recovery. In other words, that the firms already doing well will enjoy a strong recovery, while companies that were struggling before the pandemic will not enjoy much recovery at all, if any.

The logic behind this is pretty straightforward. Going into the pandemic, MSPs with mature operations, agile systems and strong finances would have been better positioned not just to survive, but to pivot into new opportunities, and do so quickly. The MSP that used the increase in cyberattacks to bolster its security business last year would be a good example, as would one that pivoted quickly to supplement a struggling vertical with a new vert that brought some growth to the table.

Here’s the kicker, though. A K-shaped recovery is probably not desirable. If too many MSPs fall on the struggling side of the K, that can drag down the industry, and economy, as a whole. Managed services has a tremendous role to play in getting the world back on track economically. Each and every SMB out there relies on MSPs such as yourself to help their business grow. A strong managed services sector is the backbone of a strong SMB sector – make no mistake about the critical role you play in the overall economic recovery. Your success matters.

At Gradient, we want to give all MSPs, large and small alike, a voice. The best way to do that is to level the playing field in terms of data, so you're making the best decisions possible. Think about what types of data might help you make better decisions. Some of your peers already have access to this data, so why shouldn’t you?

There’s so much data that you already own, but you’re not able to find value in. This represents money left on the table. Money that could fuel stronger individual MSPs and a more powerful industry overall. Forget this K-shaped stuff – we should be aiming for a good old-fashioned V-shaped recover for all. Level the data playing field, and that’s exactly what can happen.

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