2020 has been a year of change. For better or worse, we have seen a great deal of transformation. When we heard that Channel Futures was altering their judging criteria for the prestigious MSP 501 list, we were intrigued. As a five of five year winner of this prestigious award, we were eager and hopeful the new criteria would incent us as well as other MSPs to push themselves to the next level. We were pleasantly surprised. To take a look at how this has changed, let's first examine what the MSP 501 is and the original judging criteria.
The MSP 501 is a list of the largest and most comprehensively ranked and surveyed Managed Service Providers (MSP) worldwide, created by Channel Futures. This list, in its thirteenth year of publication, is highly anticipated in the MSP world. The unfortunate issue was that even as recently as last year, the MSP 501 ranking was almost exclusively judged by annual revenue. In 2019, this list changed drastically due to a switch in the market. Many large and developed providers began the switch to become MSPs but were not yet a "traditional" MSP. In fact, the top 8/10 ranked MSPs in the 2019 MSP 501 did not even consider themselves "MSPs." This induced a change in the judging criteria.
In contrast to the 2019 list of top 501 MSPs, the 2020 list of top 501 MSPs were judged on four different criteria versus one. This year's list is much more telling of a well-rounded MSP. It was not only judged on annual revenue but also profit margin, percentage of annual revenue that is recurring, and revenue per employee. The change in criteria gave a different picture from 2019's list. It offered insight into which MSPs were indeed the best in class instead of just the biggest. There was a great deal of movement within the list this year, and we personally witnessed a massive change in our position on the list for the better.
We hope you look forward to our upcoming press release showing where Pendello Solutions ranks worldwide. Be sure to follow us on social media as not to miss our announcement. We are thrilled to again be part of such a prestigious list of MSPs worldwide.