Syncro announced the results of its 2025 Industry Survey on Microsoft 365 Management. With 60% of MSPs reporting that Microsoft 365 powers more than 80% of their client base, it’s clear the platform is a core part of modern MSP operations. The report reveals that operational complexity, incomplete backups and reactive security practices are creating a growing strain for providers as they work to secure multi-tenant client environments at scale.
Key findings
- 29% of MSPs have experienced a preventable client data loss incident that could have been avoided with dedicated backup.
- 40% cite operational complexity and lack of integrated tools as their top Microsoft 365 management challenge.
- 28% only review or update security baselines after incidents occur.
- 18% of technician time is spent managing user access and credential issues.
“Microsoft 365 is the backbone of business operations and MSPs are under enormous pressure to deliver protection that’s both effective and scalable,” said Michael George, CEO, Syncro. “The findings show that while MSPs are embracing the cloud, many are still grappling with fragmented tools and manual workflows that leave critical gaps in both data and identity protection.”
The report highlights that most MSPs rely on multiple disconnected systems for Microsoft 365 security and administration. This fragmented approach drives inefficiency and increases the risk of configuration errors, policy drift and delayed threat response. To close these gaps, MSPs are increasingly consolidating security, backup and management workflows under unified platforms.
“The survey makes it clear that reactive security is not enough,” said Matt Lee, senior director of security and compliance, Pax8. “MSPs have an opportunity to shift toward proactive, automated protection, and that shift will define who is best positioned to grow.”
The report outlines three key recommendations to help MSPs reduce risk and scale more efficiently in Microsoft 365 environments.
- Simplify complexity: Consolidate management under unified platforms to improve consistency and reduce friction. The survey found that MSPs using integrated systems reported fewer configuration errors and better visibility across tenants, creating a stronger foundation for scale.
- Close the backup gap: Protect both business data and identity infrastructure to ensure business continuity. Incomplete or inconsistent backups remain one of the most preventable causes of client downtime and data loss, yet more than half of MSPs admit their coverage is still incomplete.
- Strengthen baseline management: Automate proactive security practices across tenants to move from firefighting to foresight. Standardized baselines and automated checks reduce technician workload, improve policy enforcement, and help providers maintain consistent protection as they grow.
The full Syncro 2025 Industry Survey Report on Microsoft 365 Management is available for download here.
