MSPs are designed to deliver a comprehensive suite of IT services to enhance operational efficiency and security for businesses across various sectors. Services often include network management, cybersecurity, data backup and recovery, cloud services and compliance management, among others. With these services, businesses mitigate risks, reduce costs and focus on core competencies, thus enabling sustainable growth in an increasingly competitive environment.
That’s not to say the relationship between businesses and MSPs is not without challenges. Key considerations include selecting the right provider, managing expectations and addressing potential hidden costs. Additionally, as cybersecurity threats become more sophisticated, organizations must prioritize security measures that are suited to protect sensitive data and maintain compliance with regulatory standards
With that said, MSPs are important in supporting the digital transformation of businesses, with a growing market projected to reach $183.47 billion by 2030, according to Grand View Research. Their contribution to operational resilience and strategic IT management makes them indispensable.
Taking what many know about MSPs and the MSP market, Kaseya, a provider of AI-powered cybersecurity and IT management software, released its 2025 State of the MSP Industry Look Ahead: Trends, Growth and Strategies for Success and found that MSPs reported profitability as a top focus in 2025 and are optimistic about their future growth.
Kaseya is a Diamond sponsor of MSP Expo, taking place February 11-13 in Fort Lauderdale, Florida. At MSP Expo, Kaseya CEO Fred Voccola will hold a keynote presentation at 2:30 PM Wednesday, February 12.
Back to its report, Kaseya found that “new customer acquisition (43%), revenue growth (37%) and profitability (36%) topped the list” are the top concerns for MSPs. And 91% of MSPs are set to prioritize profitability in 2025. They want to focus on ways to help them financially.
In the drive for increased growth and profitability, MSPs should look to utilize AI-driven tools that increase efficiency by automating repetitive and time-consuming tasks. A caution of warning, though. As I have stated in a few articles in the past, AI is the double-edged sword of our age. Sure, it can be used to help businesses, but these tools are also available to bad actors with malicious intent. In fact, according to the report, more than two-thirds of MSPs saw an increase in AI-driven attacks in the last 12 months. In 2024, more MSPs were affected by AI-supported attacks (32%) than supply chain attacks (29%) or endpoint threats (29%). Technicians shouldn’t be frightened of AI though, because it is the best defense against itself.
Of course, AI is jusr one way for MSPs to make themselves stand out in the competitive market. That isn’t the only way. For example, many would think smaller MSPs often struggle because they don’t have the tools to offer an abundance of services. Actually, it is quite the opposite. Smaller MSPs are often able to find success over larger ones because of their niche expertise.
Key strategies include diversifying service offerings to meet evolving client demands, such as adding endpoint detection, cloud management and dark web scanning. Prioritizing security is also crucial, with investments in EDR, email security and MDR essential for client retention and attracting new business. Back to AI-powered tools and automating repetitive tasks, smaller MSPs can use these tools to improve efficiency and scale operations cost-effectively.
For smaller MSPs, success lies in "smart growth" – expanding services strategically, embracing automation and establishing strong security foundations.
The report also found that 83% of MSPs offer co-managed services, which helps internal IT teams with business continuity and disaster recovery, cloud-based infrastructure design and management and data backup and protection.
“Small and medium-sized businesses are becoming more and more tech savvy – and MSPs are reaping the rewards,” said Gary Pica, founder, TruMethods, a Kaseya company. “They’re seeing revenue growth and want to continue that momentum long into the future. MSPs are an essential service and they’re making the right moves to build sustainable, high-margin businesses. By streamlining their operations and utilizing automation, MSPs are preparing to capitalize on big opportunities in 2025.”
The role of MSP is more than just simple problem-solving; they are integral to driving business operations in an environment characterized by rapid technological change. The continued reliance on technology across all sectors ensures that MSPs will remain a vital component in supporting organizational needs, which while only benefit their profitability. Let’s see what 2025 has in store for the MSP market.
Kaseya is a Diamond sponsor of MSP Expo, taking place in Fort Lauderdale, Florida, February 11-13. Kaseya CEO Fred Voccola will also hold a keynote presentation at 2:30 PM Wednesday, February 12. MSP Expo is the premier event for MSPs, offering a three-day experience combining conference education, networking opportunities, an exhibit hall full of the latest technologies and solutions to help MSPs build their business, and more. Kaseya will be in booth #1728 in the exhibit hall.
Edited by
Alex Passett
