Industry executives and experts share their predictions for 2025. Read them in this 17th annual VMblog.com series exclusive.
By Andy Cormier, Channel Chief, Syncro
With technology advancements, changing client expectations,
and cybersecurity needs increasing, managed service providers (MSPs) are
experiencing significant changes. As I look ahead to 2025, I’ve identified
several trends that I believe will influence how MSPs operate and deliver value
to their clients. Whether it is outsourcing security operations or leveraging
artificial intelligence as a revenue growth tool, these developments will allow
MSPs to stand out from their competitors.
1. Outsourced
Security Operations Centers Become Standard
Cybersecurity is growing more complex, outpacing many MSPs’
ability to manage security threats in-house. Today some MSPs are implementing
security measures without completely understanding their implications and best
practices. The shortage and high cost of skilled cybersecurity professionals
also make it difficult for MSPs to bring qualified security professionals
in-house.
As a result, many MSPs have started to outsource their
managed security operations through a Security Operations Center (SOC) using
Managed Detection and Response (MDR) services. MDR provides the platform and
expert personnel needed to detect and mitigate cybersecurity threats 24/7/365
with actual humans. This allows MSPs to offer comprehensive protection without
the need for full-time, in-house specialists.
By 2025, MDR services will be a standard part of MSP service
offerings. As security threats evolve and talent costs rise, outsourcing
security needs to a SOC will enable MSPs to maintain robust security
capabilities and avoid operational disruptions. MSPs that offer advanced
outsourced security services will stand out in a market increasingly defined by
security concerns, allowing them to qualify a subset of customers unwilling to
move forward without a strong security posture.
2. AI for Revenue Generation, Not Just
Efficiency
Today, many MSPs use AI to improve efficiency-i.e., speeding
up response times, automating repetitive tasks, and supporting technicians by
offering solutions to common problems. However, the potential of AI goes far
beyond operational improvements. While efficiency gains are valuable; they
typically only lower costs or save time-not directly increase revenue.
Yet AI can drive revenue directly by enhancing sales,
pricing, and customer retention strategies. For example, since AI can analyze
thousands of data points across your customer interactions, MSPs can identify
which clients may need additional services and even those that have a high
probability of being receptive to an upsell. AI can also analyze customer
behavior and historical data to suggest ideal times for renewal negotiations
and other services based on usage patterns, previous conversations, and support
ticket data. This data-driven approach allows MSPs to anticipate customer needs
and respond with tailored offerings that generate increased revenue
opportunities or entirely new income streams. In 2025, the use of AI for
revenue-generating activities will start to become more of a standard practice
among MSPs. Rather than focusing solely on time and cost savings, AI will
provide actionable insights to drive profit.
3.
Vendors Leveraging Aggregated Data to
Boost MSP Performance
Vendors that support MSPs collect large volumes of
operational data, such as ticket patterns, billing trends, and performance
metrics. While MSPs use some of this data for internal optimization, vendors
have yet to fully harness this aggregated information to deliver strategic
insights back to their MSP clients.
In 2025, vendors will start to use the vast amounts of
anonymized, aggregated data from MSPs to provide actionable insights that help
MSPs optimize their business practices when compared to other MSPs. For
example, vendors can analyze data across thousands of MSP clients to identify
industry benchmarks, revenue leaks, or underperforming contract elements.
They’ll deliver personalized reports that show MSPs where they could increase
revenue, adjust pricing, or reduce inefficiencies based on peer performance.
This value-added intelligence will position vendors not just as software
providers but as strategic partners invested in the MSPs’ success.
4. Insurance-Driven Compliance: The New
Normal for MSPs
MSPs are being pushed by clients today to meet specific
compliance standards, which are often driven by insurance requirements due to
the rise in ransomware incidents. Currently, MSPs have the flexibility to
choose compliance frameworks, service offerings, and products based on clients’
needs. However, this dynamic is shifting, as insurance companies are starting
to require compliance standards that their clients must adhere to, meaning the
MSPs that service them must now support these compliance standards as well.
By 2025, we’ll see a widespread shift where MSPs must align
with strict insurance-mandated compliance standards. Customers will vet MSPs
based on compliance adherence-not necessarily because the clients prioritize
compliance but because their insurance coverage mandates it. This will force
MSPs to deepen their compliance expertise and ensure all components of their
technology stack align with these new standards. Instead of compliance being an
MSP differentiator, it will now be a requirement, and only MSPs that meet these
standards will be considered for hire.
It is clear from these trends that MSPs need to be adaptable
and strategic as we enter the new year. By embracing outsourced security,
harnessing the revenue potential of AI, leveraging aggregated data, and
following compliance mandates, MSPs can position themselves for long-term
success.
##
ABOUT THE AUTHOR
Andy Cormier is Channel Chief at Syncro, where he leads
strategic initiatives with Syncro’s
partners, ensuring their needs are met through innovative, AI-driven solutions
that maximize profitability. With a deep understanding of the MSP landscape,
Andy has built, grown, and successfully exited his own MSP business, consulted
for hundreds of others, and helped shape leading MSP platforms. He is also the
author of So You
Want To Be An MSP, offering actionable insights for thriving in a
sales-driven model. Andy is passionate about helping MSPs succeed and is
committed to driving value and growth for Syncro’s partners.
