MSPs have reported profitability as being their number one focus for 2025, according to new research from Kaseya, alongside optimism for their future growth.
The cybersecurity IT management firm’s survey findings have been documented as part of its State of the MSP Industry 2025 Look Ahead: Trends, Growth and Strategies for Success report, which records current trends among top-earning MSPs.
Its aim is to analyze just what sets those MSPs making $10 million or more per year apart from smaller MSPs, including how smaller providers plan to expand.
The study found that 91% of MSPs pointed to profitability as a priority as they shift focus towards expanding their business and boosting their finances in the year ahead.
This aim is not without caution, however, with new customer acquisition (43%), revenue growth (37%), and profitability (36%) named as the key concerns among participants.
Commenting on the findings, Kaseya said MSPs should focus on their pricing structures and spending to ensure they are not undercharging.
“Small and medium-sized businesses are becoming more and more tech savvy - and MSPs are reaping the rewards,” explained Gary Pica, founder of 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 utilizing automation, MSPs are preparing to capitalize on big opportunities in 2025.”
MSPs target continued growth
This optimism among MSPs is fuelled by a strong 2024 for the industry, with 64% reporting revenue increases last year and 67% stating that they expect further growth over the coming three years.
In terms of making that happen, Kaseya revealed that MSPs are successfully finding ways in which to stand out in what is a highly competitive industry landscape - with smaller MSPs in particular focusing on niche expertise to gain an advantage over larger businesses.
Other methods include offering co-managed services (83%), assisting internal IT teams with business continuity and disaster recovery (38%), cloud-based infrastructure design and management (37%), as well as data backup and protection (36%).
However, client apathy towards cyber risks is a rising concern, with survey participants crowning the issue as the number one hurdle when offering security solutions - up from 7th in 2024.
According to Pica, MSPs must work to combine security education with affordable solutions to ensure customers are adequately protected.
“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,” he said. “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.”
Among the top-earning MSPs, more than half have migrated their client workloads to the cloud, while an overwhelming 97% offer managed security services.
These businesses were found to place a strong focus on smart growth, Kaseya said, as well as automation and expanding their services according to their client requirements.
AI is a ‘double-edged sword’ for MSPs
As MSPs look to find new avenues to drive growth, many have turned to AI tools to boost efficiency and save time through automation.
However, despite its continued rise across the industry, Kaseya described AI as a ‘double-edged sword’ that represents both opportunity alongside potential security pitfalls.
According to the survey, over two-thirds of MSPs reported an uptick in AI-driven attacks over the last year. In fact, more businesses reported being affected by these AI-focused attacks (32%) than any other in 2024, with both supply chain attacks and endpoint threats following behind on 29%.
According to Kaseya, this growing AI threat is best tackled using AI itself, with the top-earning MSPs already leveraging new AI security tools to stay ahead of the game.
