Kaseya’s State of MSP Shows What Makes a Top-Performing MSP
With profitability a major focus, MSPs are optimistic about growing their businesses in 2025.
Miami, FL – January 7, 2025 – Kaseya, the leading global provider of AI-powered cybersecurity and IT management software, released today 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.
To download the State of the MSP Industry 2025 Look Ahead: Trends, Growth and Strategies for Success, click here.
