Managed Services Providers: Six security trends it will pay to be across in FY2026
Capitalising on emerging opportunities will help managed services providers grow their customer base and revenue over the next 12 months.
We've entered a new financial year, and that's generally a time for managed services providers to start implementing new business development strategies. At the same time, as we step into FY2026, managed services providers (MSPs) face a rapidly evolving security landscape - one defined by complexity, integration, and innovation. From the convergence of cyber and physical systems to the rise of intelligent automation, staying ahead of these trends will be key to winning new business and delivering more value to clients.
So, where should local MSPs with security practices focus their expansion efforts? Here are five opportunities it will pay to be across in FY2026.
- Strengthening collaboration across stakeholders
When an organisation experiences a break-in or suffers serious vandalism, it's usual for them to share any relevant footage with law enforcement agencies after the fact. Courtesy of latest generation cloud-based security platforms, those data feeds can now be pushed to the police while incidents are still unfolding. This capability accelerates response times and improves outcomes, making it an attractive proposition for both government and enterprise clients.
Today, it's a value proposition that's resonating with leaders in both the public and private sectors who are keen to protect property, prevent disruption to their operations and keep a lid on their insurance premiums. Hence, MSPs that make this technology central to their security offering will likely find no shortage of takers.
- AI: Bridging cyber and physical security
As the lines between cyber and physical threats blur, AI is emerging as the force that unites both worlds. Intelligent platforms can analyse data from surveillance systems, access controls, and network traffic, identifying patterns and anomalies far faster than human teams ever could.
For MSPs, deploying AI-powered solutions that can predict threats, trigger automated responses, and inform decision-making is no longer optional - it's a competitive necessity. AI enables a proactive approach to security, transforming it from a reactive function into a strategic advantage.
- Cloud: Not an all-or-nothing proposition
Cloud adoption in the security domain is accelerating - but it's not black and white. Many organisations are seeking hybrid models that blend on-premises systems with cloud-based capabilities. Regulatory requirements, infrastructure constraints, or risk tolerance can all impact the cloud journey.
Cloud-based platforms offer numerous benefits - centralised management, scalability, remote access, and easier updates - but they must be flexible enough to coexist with legacy systems.
MSPs that offer flexible, scalable solutions - blending cloud-native services with on-premises capabilities - will be well-positioned to serve a broader range of clients. Emphasising interoperability and choice, rather than a one-size-fits-all approach, will resonate strongly in FY2026.
- Intelligent automation: Empowering, not replacing, the human element
Automation is transforming how organisations approach security, enabling faster response times, fewer false alarms, and improved operational efficiency. But while machines can process data at speed, they can't replicate human judgment, empathy, or ethical reasoning.
Successful MSPs should focus on solutions that augment, not replace, human expertise. Intelligent automation should free up security teams to focus on strategic priorities - like risk assessment, planning, and human-centered decision-making - while AI handles the routine and repetitive.
- Unlocking more value with data
For most customers and suppliers, security solutions exist wholly and solely to protect operations and assets. While that may have been their primary purpose historically, today's sophisticated unified security technology enables businesses to tap a rich seam of data that can be used to optimise their operations in a myriad of ways.
Security systems now serve a dual purpose: protection and intelligence. Unified platforms can generate a wealth of data - on foot traffic, access trends, user behaviour, and more - that can inform everything from marketing strategy to resource planning.
For example, retail centres can use security data to optimise leasing decisions, while healthcare providers might apply it to improve patient flow.
Accurate data on foot traffic, for example, can inform a landlord's decisions on how much to charge for individual tenancies within a shopping centre or retail precinct, while marketing departments will undoubtedly be interested in the demographic composition of that traffic. Helping your clients harness this data opens new conversations, new services, and new revenue streams. If you're not educating your customers and prospects on the benefits of gaining access to such insights, you're missing a golden opportunity to add value and clinch deals.
Final thoughts: Security as strategy
In FY2026, the most successful MSPs will evolve from service providers to strategic security partners. The convergence of cyber and physical threats, the rise of intelligent automation, and the power of real-time data are changing what customers expect and what they're willing to invest in.
By embracing collaboration, integrating AI, offering hybrid-cloud solutions, and focusing on outcomes rather than just tools, MSPs can position themselves for growth, differentiation, and long-term success.
Security is no longer just about protection - it's about possibility.
