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NextGen MSPs Leverage AI and Compliance Services to Stay Competitive, as CISOs Boost Cybersecurity Spending for 2025

Forrester’s budget priorities for CISOs in 2025 emphasize the importance of API and software supply chain security, urging investments in application security and human risk management. With 90% of CISOs expecting budget increases, the focus should be on treating cybersecurity as a business decision, managing tech sprawl, and enhancing cloud security. The report highlights the need for robust safeguards against threats to software supply chains and IoT devices, advocating for a pragmatic approach to cybersecurity spending that supports revenue growth and operational resilience.

A recent report by Open Systems reveals that 71% of organizations plan to increase their IT budgets in 2025, particularly for SASE-related expenses or secure access service edge. Despite infrastructure issues and a skills gap, many organizations are allocating additional funds for SASE implementation. Many are also looking to outsource SASE management, with 70% currently relying on external providers.

Oracle’s Q1 earnings report for 2025 showed better-than-expected results, with shares jumping 13% after reporting earnings per share of $1.39 and revenue of $13.31 billion. The company anticipates revenue growth of 8-10% for the next quarter and has announced a partnership with Amazon Web Services to provide database services. Oracle’s cloud infrastructure revenue surged 45% and plans to expand its data center operations significantly were discussed.

The August Consumer Price Index (CPI) shows that while inflation is largely controlled, housing prices remain a significant concern, contributing to over 70% of the increase in core CPI.

An analysis of the MSP 501 published by Channel Futures highlights the contrast to so-called NextGen MSPs.   NextGen MSPs distinguish themselves through innovative client acquisition strategies, prioritizing webinars and industry events, and focusing on cutting-edge vendor solutions and co-selling partnerships. Their growth is driven by advancements in AI and managed compliance services. To maintain their competitive edge, they must foster deeper collaborations with vendors and continuously innovate, ensuring a synergistic relationship that leverages shared strengths in technology and market insights.

Why do we care?

A SASE (secure access service edge) architecture combines networking and security as a service functions into a single cloud-delivered service at the network edge.   I figured you might need a definition – and don’t feel bad, I did too.    Addressing the infrastructure challenges and skills gap with scalable, managed services can provide a clear value proposition.

This analysis underscores the need for traditional MSPs to evolve by embracing new technologies and deeper collaborations with vendors. Engaging in co-selling and leveraging advanced solutions will help maintain relevance in an evolving market.