Kaseya released its 2025 State of the MSP Industry Look
Ahead: Trends, Growth and Strategies for Success. MSPs reported
profitability as a top focus in 2025 and are optimistic about their future
growth. The report observes trends among top-earning MSPs that can be emulated
by those looking for competitive advantages in the new year. The results of the
survey are featured in the State of the MSP Industry 2025 Look Ahead: Trends, Growth and
Strategies for Success.
"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."
Profitability
Looking ahead
to 2025, 91% of MSPs cited profitability as a priority. When asked their
concerns, new customer acquisition (43%), revenue growth (37%) and
profitability (36%) topped the list. These results show that MSPs are shifting
their focus toward growing their businesses to help them excel financially this
year. This is a good time for them to take a look at their pricing structures,
as well as their spending, to ensure they're not undercharging, which hinders
their ability to deliver exceptional results to their clients.
Growth and
Competition
Despite their
concerns about profitability, 64% of MSPs reported revenue increases last year
and 67% of them expect further growth over the next three years. While the
landscape remains competitive, MSPs are finding ways to stand out in the crowd.
Smaller MSPs are often able to find success over larger ones by leveraging
their niche expertise. Further, 83% of MSPs offer co-managed services, helping
internal IT teams with business continuity and disaster recovery (38%),
cloud-based infrastructure design and management (37%) and data backup &
protection (36%). Client apathy toward cyber-risks as a barrier to offering
cybersecurity solutions rose from 7th last year to 1st this year - with nearly
half of respondents citing it as a concern.
"It can be
difficult to get small businesses to understand the importance of investing in
security when they often don't see themselves as a target," said Pica. "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."
The
Opportunity and Threat of AI
In the drive
for increased growth and profitability, MSPs can utilize AI-driven tools that
increase efficiency by automating repetitive and time-consuming tasks.
Unfortunately, AI is a double-edged sword that both enables and threatens
businesses. 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%). This shouldn't
scare technicians away from AI - ironically, the best soldier in the battle
against AI is AI itself. Top-earning MSPs are leveraging AI-driven security
tools to stay ahead of emerging threats.
Lessons from
Top Earners
The survey
analyzes what sets MSPs making $10 million or more a year apart and offers
guidance to smaller MSPs who want to grow. First and foremost, they are
proactive in adopting new technologies and delivering remarkable service. More
than half of the top earners have migrated their client workloads to the cloud
and a whopping 97% offer managed security services. These high earners are
focused on smart growth and always expand their services in alignment with
their clients' needs and leverage automation to improve their efficiency.