Study: MSPs Continue to Grow Industry Traction

Barracuda Networks, a Campbell, California-based cybersecurity company, has issued a new market research report detailing, in part, the prominent growth of the MSP business model in the tech industry. According to the company’s “MSP Customer Insight Report,” 52% of the surveyed organizations want MSPs to help them manage a spiraling number of disconnected security tools and vendors, and 51% turn to MSPs to evolve their security strategies as the business expands. Just under half (48%) say they rely on MSPs for around-the-clock security coverage.

The research also shows that the MSP client base has expanded significantly. MSPs have traditionally been seen as a resource for smaller businesses, but the survey found that 85% of organizations with 1,000 to 2,000 employees now depend on MSPs for security support, compared to 61% of smaller companies with 50 to 100 employees.
Over the next two years, there the company expects high demand for MSP expertise in AI and machine learning applications, as well as for network security measures such as zero trust and managed security operations.

Customers are prepared to pay MSPs up to 25% more for the services and support they need, according to the report. As many as 92% of organizations are willing to pay a premium for advanced support in integrating their security tools.

In return, customer expectations are high. Customers will consider switching providers if their current MSP fails to meet key expectations. Concerns include the MSP’s ability to help them remediate and recover from a cyberattack, and the MSP’s own security resilience. 45% of customers would switch if their MSP cannot demonstrate the skills and expertise required to deliver 24/7 security support.

“These findings highlight the pivotal role MSPs play in helping customers navigate the complexities of modern cybersecurity,” said Brian Downey, VP of Product Management at Barracuda. “From addressing disconnected security tools to meeting high customer expectations for resilience and advanced support, MSPs face both unprecedented opportunities and significant challenges.”

Barracuda commissioned an independent market research company to conduct a global survey of 2,000 senior security decision-makers in IT and business roles in organizations with between 50 and 2,000 employees from a broad range of industries in the U.S., UK, France, DACH (Germany, Austria, Switzerland), Benelux (Belgium, the Netherlands, Luxembourg), the Nordics (Denmark, Finland, Norway, Sweden), Australia, India, and Japan. The fieldwork was conducted in April and May 2025.

Channel Impact^®
The report details the findings of an international survey showing how managed service providers (MSPs) have become critical partners for businesses that want to grow securely. The data also suggests that MSPs need to function as strategic partners who can deliver necessary modes of protection as well as provide both technical and business support.