Ross Wardle's late try proved the difference at Rodney Parade after a second-half fightback from Munster threatened the home side's 19-5 half-time lead.
And while Sidoli concedes it has been a frustrating season once again for the men from Newport the 33-year-old is adamant the ingredients are there to return to former glories sooner rather than later.
"The support is so passionate down here," he said.
"It's a sleeping giant that's woken once, years ago, when Newport were flying, with all the family village and things they used to do.
"It's got huge potential. At the minute it's just tough times out there, it really is.
"It's been a roller-coaster this season but the support is immense and very loyal.
"Obviously we are not where we'd like to be in terms of our league position, while you'd like to be involved in the Heineken Cup. But we are not lacking in spirit in attitude.
"We have got a lot of good young players coming through and that is a big footing for the future."