The MSP business landscape looks different than it did even a year ago. Tighter margins, rising competition and increasing client demands are forcing providers to adapt quickly. Staying profitable now means finding smarter, more efficient ways to operate.
The 2025 Global MSP Benchmark report breaks down how top-performing MSPs are growing revenue, streamlining operations and staying ahead. Here’s a snapshot of what they’re doing differently.
1. Cybersecurity is no longer optional — it’s the main event
If security isn’t a core part of your business, you’re missing a major opportunity. Cybersecurity has become the leading revenue driver, not just across the board but especially among high-performing MSPs. Those earning net profit margins of 15% or more ranked it among their top three revenue streams. In fact, 67% of all respondents said security is one of their five fastest-growing revenue categories.
Your clients are demanding it too:
- 76% of MSPs say their clients are most concerned about security
- And 64% said clients want guidance on best practices — not just tools
From endpoint detection and response (EDR) to ransomware protection, security isn’t just a value-add anymore — it’s the expectation.
2. Efficiency is key to staying competitive
Managing more clients with the same resources is one of the biggest challenges MSPs face. That’s why operational efficiency is so critical, and integration is at the heart of it. About 95% of MSPs say that connecting their RMM, PSA and IT documentation tools is essential for running smooth, scalable operations. That’s not surprising. The MSPs that scale well are the ones who eliminate the swivel chair, cut manual tasks and free up time through automation. When your systems talk to each other, your team can move faster and achieve more in less time.
3. Co-managed IT is emerging as a strong growth opportunity
You don’t need to land a full contract to grow revenue. About 61% of executive respondents said their co-managed IT revenue is up year-over-year, and two-thirds now generate up to 50% of their revenue from co-managed services.
The message is clear — internal IT teams aren’t disappearing, but they do need help, and MSPs that support them well are cashing in.
4. M&A is heating up after a slow year
As competition grows and margins tighten, many MSPs are looking beyond organic growth. About 53% say they plan to pursue mergers or acquisitions. M&A offers a faster path to scale, access to new markets and the ability to offer broader services without building everything from scratch.
This wave of consolidation can change the MSP landscape. Larger, more efficient players are emerging, and they’re setting the pace. If you’re not actively thinking about M&A, you could find yourself competing against MSPs with more resources, wider reach and a stronger market position.
5. Winning new business is harder than ever
With so many MSPs offering similar services, standing out has never been more difficult. One in three providers say acquiring new customers is their biggest challenge this year, and it’s easy to see why. The market is saturated, competition is growing and even the most advanced services can get lost in the noise.
What separates the top performers? It’s not just the tech. They build trust, guide strategy and help clients navigate an increasingly complex IT environment. Behind the scenes, they invest in branding, lead generation and sales infrastructure to ensure their value doesn’t go unnoticed.
Get the full picture
The full 2025 Global MSP Benchmark report digs even deeper into how MSPs are adapting, growing and thriving despite the pressure. You’ll get detailed data on pricing strategies, work-life balance and other critical areas shaping MSP success. Download the report now to see where you stand and where you can go next.
