Kaseya released the 2025 State of the MSP Industry Look Ahead: Trends, Growth and Strategies for Success report. MSPs cite profitability as a top priority in 2025 and are optimistic about their future growth.
The report highlights trends among top-performing MSPs that can be emulated by those looking for competitive advantages in the new year. Looking ahead to 2025, 91% of MSPs indicated that profitability is a priority.
When discussing their concerns, customer acquisition (43%), revenue growth (37%) and profitability (36%) topped the list. These results show that MSPs are shifting focus to growing their businesses to achieve financial success.
It’s a good time for MSPs to review their pricing structures and expenses so that they don’t underprice services and thus compromise their ability to deliver excellent client results.
Competitive market
Despite concerns about profitability, 64% of MSPs reported revenue growth last year, and 67% expect further growth over the next three years. Although the market remains competitive, MSPs are finding ways to differentiate themselves.
Smaller MSPs often achieve success by leveraging their niche expertise. In addition, 83% of MSPs offer co-managed services. They support internal IT teams with business continuity and disaster recovery (38%). But also with cloud-based infrastructure design and management (37%) and data backup and protection (36%). Customer apathy toward cyber risk was cited as the most significant barrier to providing cybersecurity solutions.
AI: opportunity as well as threat
In their quest for increased growth and profitability, MSPs can use AI-driven tools that increase efficiency by automating repetitive and time-consuming tasks. Unfortunately, AI is a double-edged sword that both supports and threatens businesses.
Over two-thirds of MSPs saw increased AI-driven attacks in the past year. By 2024, more MSPs were affected by AI-enabled attacks (32%) than by supply chain attacks (29%) or endpoint threats (29%). However, this should not deter MSPs. Ironically, the best defence against AI is precisely AI itself. Top-performing MSPs use AI-powered security tools to stay ahead of emerging threats.
Managed security drives revenue
The study analyzes what differentiates MSPs earning $10 million or more annually and offers advice to smaller MSPs looking to grow. First, successful companies proactively adopt new technologies and deliver exceptional service. More than half of high-earners have migrated their clients’ workloads to the cloud, and 97% offer managed security services.
High-earners are focusing on smart growth, expanding their services according to their customers’ needs, and using automation to improve their efficiency.
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