NEWS
Profitability top priority for MSPs in 2025
MSPs reported profitability as a top focus in 2025 and are optimistic about their future growth, according to Kaseya’s 2025 State of the MSP Industry Look Ahead: Trends, Growth and Strategies for Success . The report observes trends among top- earning MSPs that can be emulated by those looking for competitive advantages in the new year. “Small and medium-sized businesses are becoming more and more tech savvy – and MSPs are reaping the rewards,” said Gary Pica, founder, TruMethods, a Kaseya Company. “They’re seeing revenue growth and want to continue that momentum long into the future. MSPs are an essential service and they’re making the right moves to build sustainable, high-margin businesses. By streamlining their operations and utilising automation, MSPs are preparing to capitalise on big opportunities in 2025.” Looking ahead to 2025, 91% of MSPs cited profitability as a priority. When asked their concerns, new customer acquisition (43%), revenue growth (37%) and profitability (36%) topped the list. This shows that MSPs are shifting their focus toward growing their businesses to help
and protection (36%). Client apathy toward cyber risks as a barrier to offering cybersecurity solutions rose from seventh last year to first this year – with nearly half of respondents citing it as a concern. “It can be difficult to get small businesses to understand the importance of investing in security when they often don’t see themselves as a target,” said Gary. “While educating clients is important, it’s pivotal for MSPs to invest in platforms and tools that allow their customers to be better protected without breaking the bank.” In the drive for increased growth and profitability, MSPs can utilise AI- driven tools that increase efficiency by automating repetitive and time- consuming tasks. Unfortunately, AI is a double-edged sword that enables and threatens businesses. More than two-thirds of MSPs saw an increase in AI-driven attacks in the last 12 months. In 2024, more MSPs were affected by AI-supported attacks (32%) than supply chain attacks (29%) or endpoint threats (29%). This shouldn’t scare technicians away from AI – often the best soldier in the battle against AI is AI itself. Top-earning MSPs are leveraging AI- driven security tools to stay ahead of emerging threats. The survey also analysed what sets MSPs making $10 million or more a year apart and offers guidance to smaller MSPs who want to grow. Firstly, they are proactive in adopting new technologies and delivering remarkable service. More than half of the top earners have migrated their client workloads to the cloud and 97% offer managed security services. These high earners are focused on smart growth and expand their services in alignment with their clients’ needs and leverage automation to improve their efficiency.
Gary Pica founder
trumethods.com
Unfortunately, AI is a double- edged sword that enables and threatens businesses. More than two-thirds of MSPs saw an increase in AI-driven attacks in the last 12 months. “ ”
them excel financially this year. Despite their concerns about
profitability, 64% of MSPs reported revenue increases last year and 67% of them expect further growth over the next three years. While the landscape remains competitive, MSPs are finding ways to stand out in the crowd. Smaller MSPs are often able to find success over larger ones by leveraging their niche expertise. Further, 83% of MSPs offer co-managed services, helping internal IT teams with business continuity and disaster recovery (38%), cloud-based infrastructure design and management (37%) and data backup
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