New research from cybersecurity firm Barracuda has revealed an increased demand for MSP security expertise in the mid-market as organizations navigate increasing IT complexity and tool sprawl.
Conducted in collaboration with B2B research firm Vanson Bourne, the 2025 MSP Customer Insight Report details the opinions of 2,000 IT and security decision makers across the Americas, Europe, and Asia-Pacific on their expectations of MSPs, both now and in the future.
The results reveal that MSPs have significantly expanded their client base to include an increasing number of mid-size organizations alongside the more traditional support for SMBs.
In fact, 85% of organizations that employ 1,000 to 2,000 employees said they rely on MSPs for their security needs, compared to 61% of smaller businesses with 50 to 100 staff on their books.
This expansion comes amid a backdrop of high MSP importance across the entirety of the survey’s participant pool. According to the study, 73% said they already work with an MSP, rising to 96% when adding those considering collaboration.
Tool sprawl driving MSP engagement
Ultimately, MSPs have become vital growth partners as businesses increasingly struggle with IT complexity, tool sprawl, and evolving strategies due to remote work and the increasing prominence of new AI technologies.
More than half of those surveyed (52%) said they want MSPs to help them manage a spiraling number of disparate security tools and vendors, for example.
Meanwhile, a similar number (51%) require assistance in evolving their security strategies as they scale, meaning MSPs now play a vital role in enabling transformation and adoption processes.
Additionally, 48% highlighted their reliance on MSPs for around-the-clock security coverage. A recent study from CyberSmart also highlighted the importance of MSPs in supporting security capabilities.
84% of MSP leaders told CyberSmart that customers expect them to manage either their security infrastructure or their cybersecurity and IT estate combined.
Future demand
In terms of new and evolving technologies, the next two years will see high demand for MSP expertise in AI and machine learning applications, Barracuda revealed, as well as for network security offerings focused on zero trust and managed security operations.
This need is expected to drive huge revenue opportunities, with a vast majority of customers (92%) willing to pay MSPs up to 25% more for advanced support to integrate their security tools.
However, increased opportunity comes with higher customer expectations, and organizations said they are prepared to switch providers if their current MSP falls below requirements and expectations, for example.
Respondents to Barracuda’s survey said their key concerns revolve around an MSP’s ability to help them remediate and recover from cyber attacks, as well as the MSP’s own cyber resilience.
Almost half (45%) said they would switch to a new provider if their MSP was unable to deliver effective 24/7 support.
The findings also align with CyberSmart’s recent survey on this front, noting MSPs are facing increased pressure and higher demands from clients.
More than three-quarters (77%) of MSP leaders told CyberSmart they're experiencing increased scrutiny of their own businesses’ security capabilities over the past 12 months.
“These findings highlight the pivotal role MSPs play in helping customers navigate the complexities of modern cyber security,” commented Brian Downey, Barracuda’s vice president of product management.
“From addressing disconnected security tools to meeting high customer expectations for resilience and advanced support, MSPs face both unprecedented opportunities and significant challenges.”
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