28 01732 759725 MSPs says that smaller MSPs can achieve sustainable growth by mirroring the strategies of top-performers, e.g. by diversifying their services offering to meet changing client needs; prioritising cybersecurity with solutions like EDR, MDR and email security; and using AI and automation to scale cost-effectively. Managed services Monthly recurring services revenue is the top revenue source for the greatest number of MSPs (cited by 37%), followed by break-fix (22%), projects (21%) and consulting (20%). Across all MSPs, the three most popular managed services are business continuity and disaster recover (BCDR), data backup and protection and network and email and endpoint security, all three of which are offered by 46% of MSPs. Cybersecurity barriers Despite the demand for cybersecurity services and the growing cyber threat, MSPs still face barriers when it comes to offering cybersecurity solutions. The leading one this year, up from 7th place last year, is ‘client apathy toward cyber-risks’ cited by 49% of surveyed MSPs, well ahead of other obstacles such as product complexity (38%), insufficient staff training (36%), the number of alerts (35%) and having to manage too many cybersecurity products (34%). Kaseya says that these barriers highlight the need for end user education, presenting MSPs with an opportunity to boost revenue through cybersecurity training and vulnerability testing, as well as vendor consolidation to reduce complexity (and cost), which is one of the big benefits of the Kaseya 365 platform. www.kaseya.com to leverage automation to make their teams more productive, and have a cost structure in place, will win. They will have more efficient engineers that yield more revenue. They’ll have lower software and technology costs because instead of spending 25% on their software and hardware kits, they’ll be spending 10% or 15%. And with higher gross margins they will be able to invest more in their business, be aggressive on pricing and still meet their financial objectives.” Top priorities According to 2025 State of the MSP Industry Look Ahead: Trends, Growth and Strategies for Success, profitability is one of the top three priorities for MSPs this year. Nine out of 10 MSPs across EMEA, North America, Latam and APAC cited it as at least a moderate priority, with 63% of these classifying it as either a top or a high priority. While acquiring new customers was identified as the greatest concern by the largest proportion of MSPs (16%), followed by revenue growth (10%), and a Top 5 concern for 45%, with revenue growth at 37%, profitability came third in both rankings (9% and 36%). Interestingly, 45% of EMEA respondents cited staffing as a top concern. Confident of growth Last year, 64% of the 1,262 MSPs surveyed increased their revenue and 67% expect further growth over the next three years (73% of MSPs in EMEA). According to the report, the highest earning MSPs, those making $10 million or more a year, are the most proactive in adopting new technologies and services. For example, 59% have migrated all client workloads to the cloud and 97% offer managed security services. While the report states that ‘revenue growth depends on scalability’, Kaseya Kaseya, a global provider of AI-powered cybersecurity and IT management software, is calling on managed service providers (MSPs) to introduce more automation and streamline their processes to capitalise on the opportunities for growth outlined in its new report, 2025 State of the MSP Industry Look Ahead: Trends, Growth and Strategies for Success. CEO Fred Voccola believes that 2025 will be the year when commercially minded MSPs start to extend their lead over their peers, pointing out that platforms like Kaseya 365 will give them an advantage over rivals that make less use of automation and rely on diverse point products and multiple supplier relationships. He said: “The average MSP had a 10% profit margin in 2024, with ranges from 0%-35%. Those who are leveraging MSP platforms such as Kaseya 365 will be among the MSPs with higher profit margins, enabling them to make more investments in their businesses in the areas of AI, additional technicians, as well as sales and marketing. “MSPs who do not transition to price-appropriate and automated MSP platforms will continue to overspend on their technical stack, funnelling much needed investment away from key areas of their business, such as AI and more technical staff, putting them at a considerable disadvantage.” He added: “MSPs who are able New Kaseya study highlights the winning strategies of last year’s most successful managed service providers What makes a top‑performing MSP? State of the MSP Industry 2025 Look Ahead: Trends, Growth and Strategies for Success can be downloaded from: https://www.datto.com/resources/state-of-the-msp-industry-2025/ Fred Voccola
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