Kaseya’s 2025 Global MSP Benchmark Report indicates that cybersecurity has become a critical revenue driver, with sixty-seven percent of respondents identifying it as one of their fastest-growing revenue categories. Additionally, seventy-six percent of MSPs report that their clients are most concerned about security, highlighting the importance of integrating cybersecurity into service offerings. Operational efficiency remains crucial, with ninety-five percent of MSPs recognizing the need to connect their tools for smoother operations. The report also notes that co-managed IT services are on the rise, with sixty-one percent of executives reporting year-over-year revenue growth in this area. Meanwhile, mergers and acquisitions are gaining traction, as fifty-three percent of MSPs express plans to pursue this strategy to enhance their market presence. Despite these opportunities, providers face challenges in acquiring new customers, with one in three citing this as their biggest hurdle. The report emphasizes that top-performing MSPs distinguish themselves not just through technology, but by building trust and guiding clients in a complex IT environment.
Why do we care?
Just as cybersecurity is a requirement for customers, as more MSPs prioritize cybersecurity, the market will become oversaturated, making it difficult to stand out. Commoditization risk looms if every MSP markets similar services.
To combat this, offering niche security solutions or industry-specific compliance support can help differentiate offerings. But be warned, cybersecurity isn’t the differentiator that one might think.
While acquisition is highlighted as a challenge, the focus on expanding service lines (like cybersecurity) might inadvertently overlook client retention strategies. High churn rates can offset new client gains, making it vital to balance expansion with maintaining existing relationships, particularly given the potential for IT spending pullback this year. We’ve already seen the projected growth rate drop in half.