Good times ahead for MSPs, just don’t mention security
Hello 2025. My new year’s resolution is to write about technology without mentioning Musk, Zuckerberg and the rest of the tech broligarchy. At least for a week.
So, despite the latest nonsense from the Meta CEO suggesting that trying to ascertain whether something is factual or not should be replaced by your friend’s uncle Jim’s opinion on it, I am going to resist the urge to comment. For this week at least.
I mean it’s not as if we have anything to be concerned about when the people who are pretty much the public faces of technology and AI prove themselves to be either unconcerned by facts or enthusiastic proponents of a counter-factual ‘reality’. So no reason for any qualms whatsoever about how AI will evolve and how it will be used. Nope. None. Full speed ahead!
Instead, what I am going to focus on this week is Kaseya’s 2025 State of the MSP Industry Look Ahead: Trends, Growth and Strategies for Success report. You will be unsurprised to hear that a top focus for MSPs in 2025 is going to be profitability. And the even better news is that they are optimistic about their future growth.
This may be a consequence of a pretty good performance in 2024 when 64% reported revenue increases, prompting 67% to predict further growth over the next three years. MSPs in EMEA were the most optimistic, with 73% of them expecting revenue to increase in the next three years.
According to Kaseya, the findings show that the MSP market is resilient and full of potential.
Describing MSPs as “an essential service”, Gary Pica, founder of TruMethods, a Kaseya Company, argued many were “making the right moves to build sustainable, high-margin businesses. By streamlining their operations and utilising automation, MSPs are preparing to capitalisze on big opportunities in 2025.”
The 2024 report found that competition was the most frequently cited challenge, mentioned by 35% of respondents, but while still a concern, there had been a shift in focus towards internal priorities, such as profitability and operational efficiency.
The report recommends that to remain competitive, MSPs must adapt to rising client expectations and position themselves as indispensable technology partners. Which seems fair enough.
What was concerning was the lack of customer enthusiasm for cyber security solutions with apathy towards cyber-risks becoming the main barrier, according to the MSPs surveyed. Pica noted the difficulty in getting small businesses “to understand the importance of investing in security when they often don’t see themselves as a target. While educating clients is important, it’s pivotal for MSPs to invest in platforms and tools that allow their customers to be better protected without breaking the bank”.
A thoroughly commendable sentiment, of course. Among other highlights, the report noted that vendor consolidation was a growing trend among MSPs as they seek to streamline operations and improve margins.
As for smaller MSPs, it argued they should mirror the strategies of top performers by diversifying their services, prioritising security and adopting cutting-edge tools.
The report also stressed the potential for AI-driven tools to help MSPs increase efficiency by automating repetitive and time-consuming tasks. But it also conceded that AI was a double-edged sword that could pose a significant threat to businesses.
This was probably why two-thirds of MSPs reported an increase in AI-driven attacks in 2024 and more of them were affected by AI-supported attacks (32%) than supply chain attacks (29%) or endpoint threats (29%).
According to Kaseya, “the best soldier” in the battle against AI is, ironically, AI. Is it ironic, though? For instance, back in the day, I’m guessing that the best way to improve your prospects in a battle against tanks was probably to make sure you had some tanks as well.
Does that mean the best way to combat a Musk or Zuckerberg is with another Musk or Zuckerberg? Perish the thought.
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