MSPs emerge as key security partners for mid-market enterprises

A new study from cybersecurity firm Barracuda shows that the demand for MSP (hosting service provider) security expertise in the mid-sized market is rising as businesses cope with increasingly complex IT environments and dispersed tools.

The study was conducted by Barracuda in collaboration with B2B research firm Vanson Bourne, and the 2025 MSP Customer Insight Report collects views from a total of 2,000 IT and security decision makers from the Americas, Europe and Asia Pacific, covering their current and future expectations for MSPs.

The results show that MSP’s customer base has expanded significantly, increasingly reaching mid-sized enterprises, not just traditional SME support.

In fact, 85% of businesses with a workforce between 1,000 and 2,000 said they rely on MSPs to meet their security needs, compared to 61% of small businesses with a workforce of 50 to 100.

The importance of MSP remains prominent throughout the survey participant population. According to the study, 73% of respondents said they have worked with MSPs, and if companies considering cooperation are added, this proportion will rise to 96%.

Tools diversification drive MSP participation enhancement

Ultimately, MSP has become a key growth partner as businesses face changing strategies, tool dispersion, and IT complexity challenges amid the rise of remote work and AI technologies.

More than half (52%) of respondents said they hope MSPs can help manage the growing number of security tools and vendors.

Meanwhile, nearly half (51%) say the need to assist in adjusting security strategies as the company grows, meaning MSPs play a crucial role in driving transformation and adopting new technologies.

In addition, 48% of respondents pointed out that they rely on MSPs to provide 24/7 security protection. A recent CyberSmart study also highlights the important role of MSPs in enhancing security capabilities.

Research by CyberSmart shows that 84% of MSP leaders say customers want them to be responsible for managing their security infrastructure or integrated cybersecurity and IT assets.

Future market demand

In terms of emerging technologies, Barracuda notes that in the next two years, MSP expertise in artificial intelligence and machine learning applications will also be highly demanded, while cybersecurity deployments such as zero-trust architectures and managed security operations will also be favored.

This demand is expected to bring huge revenue opportunities, as the vast majority of customers (92%) are willing to pay MSPs a premium of up to 25% for advanced support that integrates their security tools.

However, the increase in opportunities is also accompanied by higher customer expectations, and many organizations say they are ready to change service providers if existing MSPs fail to meet their requirements and standards.

Barracuda survey showed that respondents’ primary focus was on whether MSPs can assist them in coping and recovering from cyber attacks, as well as MSPs’ own cyber resilience.

Nearly half (45%) of respondents said they would consider changing providers if their MSPs are unable to provide effective 7x24-hour support.

These findings are also consistent with recent CyberSmart survey results, suggesting that MSPs are facing greater pressure and higher demands from customers.

More than three quarters (77%) of MSP leaders said their business security has been under stricter scrutiny over the past 12 months, according to CyberSmart.

“These findings highlight the critical role of MSPs in helping businesses cope with the complexity of modern cybersecurity,” commented Brian Downey, vice president of product management at Barracuda.

“Whether it is solving the problem of split security tools or meeting customers’ high expectations for resilience and advanced support, MSPs face unprecedented opportunities and major challenges.”

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