The changing role of the MSP: What does this mean for security?

Managed Service Providers (MSPs) are invaluable partners for businesses as they grow, innovate, and transform. They provide organizations with a cost-effective way to outsource critical areas of business to streamline processes and stay compliant in areas of speciality, like IT and cybersecurity.

The support provided by MSPs is especially critical for time and resource-strapped small and medium-sized enterprises (SMEs). Indeed, many MSPs work with SMEs to provide and administer vital resources from office software packages to awareness training and network security needs. As of 2024, it was estimated that globally there were roughly 130,000 MSPs, a market that was valued at over $340bn. By 2026, MSPs are tipped to be worth €234.2 billion to the EU economy.

In 2025, the role of the MSP changed significantly, as more customers flocked to these providers for specialized cyber support to cope with the increasing sophistication and volume of threats. At the same time, MSPs themselves faced more scrutiny as critical parts of the wider supply chain. So, what does cybersecurity look like for MSPs and their customers in 2026 and beyond?

MSPs are being targeted more frequently

MSPs hold a unique position within the IT ecosystem, as they are often responsible for managing and supporting the IT infrastructures, cloud services, and cybersecurity of many different organizations. These trusted partners often have privileged access to the inner workings of the organizations they support, including access to the critical systems, sensitive information, and intellectual property of their clients.

As such, they’re seen as very valuable targets for cybercriminals. Breaching one MSP can give a malicious actor a foothold into a vast network of that MSP’s customer base, along with their data. This allows them to inflict widespread damage and maximise financial gain. Worryingly, MSPs are being targeted more frequently.

Our 2025 research revealed that 69% of MSPs had reported being breached two or more times in the last 12 months, with nearly half (47%) of MSPs admitting to experiencing three or more breaches. As a result, customers are putting the security of MSPs under more scrutiny.

MSP security practices are under the microscope

In recent years, security threats have increased across the board for all organizations - not just for MSPs. Supply chain attacks and their wide-ranging impact are frequently in the news. Take the 2023 MOVEit attack, for example, where the Clop ransomware group exploited a zero-day vulnerability within its MOVEit Transfer software, used for secure file transfers. They used the vulnerability to steal sensitive data from thousands of organizations, including the BBC, British Airways, and Boots, and nearly 100 million individuals, then demanded ransoms to prevent data leaks. This and similar incidents shine a spotlight on the criticality of supply chain security. As a result, positively, awareness of cybersecurity among end users has undeniably increased.

As a result, organizations are vetting the partners they trust with their data and critical systems more, and MSPs are no different. In a recent survey of MSP professionals globally, 77% of respondents said scrutiny of their businesses’ security capabilities had increased, suggesting that MSP customers (current, potential, and otherwise) are more aware of the importance of good cyber credentials in a potential partner.

To reflect this demand, many MSPs are retooling and expanding their internal and external cybersecurity operations, with 81% of the MSPs we surveyed saying they’d increased spending on specialist cybersecurity hires in the past 12 months and 78% saying they’d upped spending on their security capabilities, such as training, defenses, or products and services for customers.

Whilst the security of MSPs is being called into question more frequently, organizations are also calling upon MSPs for support with cyber more often, too. But what has driven more organizations to seek specialist security support?

Threats are increasing, and organizations are seeking advanced help from MSPs

More than ever, cybersecurity requires specialist support, with threats becoming more sophisticated (no doubt thanks to AI) and increasing in volume. No organization is too small a target, either, with SMEs taking note of the increasing risk of an incident.

Research shows that over half of MSP leaders globally believe that their customers are at more risk today than this time last year when it comes to cyber threats, with AI-based attack vectors, ransomware/malware, and insider threats the most commonly faced threats.

As a result of this uptick in threats, more organizations than ever are leaning on MSPs for cyber support. In fact, in 2025, 84% of MSPs managed either their clients’ cyber infrastructure or their cyber and IT estates combined. This increased significantly, from 64% the previous year.

What this shows is that SMEs are realising that they cannot handle cybersecurity alone, turning to MSPs for additional help. Cybersecurity is no longer an optional extra or add-on; it’s becoming a core, expected service for MSPs. MSP leaders are transitioning from general IT support to becoming essential cybersecurity guardians.

The future for MSPs

MSPs that adapt by investing in specialized cybersecurity expertise, advanced technologies, and a proactive security posture will thrive, becoming indispensable partners to businesses navigating the complex world of cyber risk. Those who don't may find themselves increasingly vulnerable and less competitive.

The stakes are high. Client breaches increasingly reflect on an MSP's reputation and liability. They're prime targets for cybercriminals seeking access to an extensive supply chain of clients and data.

Combating sophisticated, AI-driven threats demands MSPs critically elevate their own internal security and move beyond reactive measures, becoming indispensable cybersecurity support.