MSPs face rising demand for security, strategy & 24/7 support

Barracuda Networks has released its MSP Customer Insight Report 2025, highlighting an evolving role for managed service providers (MSPs) in meeting organisational security and resilience needs.

The survey collected responses from 2,000 IT and security decision-makers worldwide and found that organisations increasingly depend on MSPs not only for technical capabilities but also for strategic direction and business continuity. More than three-quarters (77%) of Australian organisations now rely on MSPs to manage growing security challenges as they enlarge their operations, and 54% seek MSP assistance to handle a proliferation of disconnected security tools and vendors.

MSPs in transition

The findings suggest MSPs are entering a period of significant transformation, with customers demanding extensive, multi-layered protection and a broader suite of support services.

According to the report, "MSPs are vital growth partners. Fifty-four per cent of the Australian organisations surveyed want MSPs to help them manage a spiraling number of disconnected security tools and vendors, and 55 per cent turn to MSPs to evolve their security strategies as the business expands." In addition, 39% of Australian respondents look to their MSP for ongoing, round-the-clock security coverage.

Customer reliance on MSPs is widespread. Seventy-seven per cent of Australian respondents are already working with an MSP, and that figure rises to 99% if those evaluating or considering collaboration are included. MSP engagement is no longer confined to smaller companies; 85% of organisations globally with 1,000 to 2,000 employees now rely on MSPs, compared with 61% of organisations with 50 to 100 employees surveyed.

Business implications

The research outlined a willingness among organisations to invest in advanced MSP support for integrating and securing their tools. Globally, 92% of organisations are prepared to pay a premium - up to 25% more - for such services. Selecting an MSP now often depends on the provider's ability to help remediate and recover from cyberattacks, as well as their own security posture. Nearly half (48%) of Australian organisations would consider switching their MSP if their current provider cannot deliver 24/7 security support.

This growing focus on integration and resilience coincides with rising demand for expertise in artificial intelligence (AI), machine learning, zero trust security architectures, and managed security operations - trends the report says are expected to accelerate over the next two years.

Channel perspective

"The channel has always been close to the customer, but the role it plays now is more consultative, more embedded, and more critical than ever. This is especially true for organisations navigating hybrid environments with constrained internal resources. The opportunity for channel partners in this moment isn't just to sell security solutions, it's to solve systemic complexity."

This observation was made by Dan McLean, Country Manager Australia and New Zealand at Barracuda, who also noted, "Across Australia, organisations are contending with a level of security complexity that simply didn't exist a few years ago. This includes multiple tools, multiple vendors, and rising pressure to adopt AI and advanced threat strategies. What we're seeing is a shift in how organisations approach this challenge and they're looking to their MSPs and channel partners not just for technical expertise, but for strategic guidance and long-term resilience."

Brian Downey, VP of Product Management at Barracuda, commented, "These findings highlight the pivotal role MSPs play in helping customers navigate the complexities of modern cybersecurity. From addressing disconnected security tools to meeting high customer expectations for resilience and advanced support, MSPs face both unprecedented opportunities and significant challenges. At Barracuda, we are committed to empowering MSPs with the integrated security platform, 24/7 expert monitoring and support and product innovations they need to not only meet these demands but also thrive in an evolving landscape."

Partner views

Richard Flanders, Commercial Director at Aura Technology, said, "As the research shows, MSPs are going through a period of transition.

Today's MSPs need to be more than just service providers; they need to be strategic partners, able to address customer demand for deep, multi-layered protection and provide both technical and business support. We're seeing companies with 1,000 plus users looking for 'co-managed' services and skills to provide an effective protective shield 24/7. This can be a great starting point for additional business opportunities. MSPs that can't adapt to this new reality will struggle to survive."

Roy de Bruijn, Commercial Director at Tredion, added, "The findings underscore the importance of AI and advanced security measures for both MSPs and their customers. MSPs need these capabilities to remain relevant and provide unparalleled value to clients. We are seeing ever larger organisations seeking the assistance of MSPs to help them with specific and complex IT security challenges."

Complexity and opportunity

The report concludes that security complexity is increasing, with MSPs positioned to serve as strategic partners, helping organisations integrate disparate security tools, maximise resilience, and maintain round-the-clock protection.

As organisational needs and threat landscapes continue to evolve, demand for managed solutions and strategic support is expected to intensify, placing new expectations and opportunities before MSPs globally.