According to newly released research from Cynet, managed service providers (MSPs) are facing growing operational strain as they race to meet demand for cybersecurity services. The report, “Managed Security Snapshot: 2025 Growth, Gaps & Game Plans,” reveals that while cybersecurity services are fueling growth and deepening client relationships, most MSPs are hitting operational roadblocks, held back by fragmented tools, limited automation and lean security teams.
To uncover what’s fueling and frustrating MSP growth, Cynet surveyed 200 cybersecurity leaders at U.S.-based MSPs. Respondents included a mix of executive and technical decision-makers, from CEOs and CISOs to Heads of Security and senior consultants, at firms ranging from 5 to 100 employees. The results provide a rare snapshot of how MSPs are evolving their cybersecurity offerings, the obstacles slowing them down and the strategies defining the industry’s next chapter.
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“Managed cybersecurity services are in record demand as cyberattacks increase in volume and sophistication,” said Cynet CEO Jason Magee. “The MSP Survey findings reinforce why scalable breach protection is mission-critical to maximizing growth in the channel. We look forward to translating these insights into action and collaborating with Cynet partners to deliver the benefits of operational efficiency, total visibility and automated protection.”
Key Takeaways
- Growth brings complexity: MSPs manage an average of 50 clients, 1,728 endpoints and respond to over 100 security incidents per year.
- Tool sprawl undercuts margins: Most MSPs use four security tools from four different vendors, with complexity directly tied to profit margin decline.
- Security headcount is limited: Security specialists make up 8–20% of the average MSP’s staff.
- Automation is the top growth blocker: 50% cite limited automation as their biggest barrier to scaling.
- Vendor trust is shifting: 42% of MSPs now rely on MITRE ATT&CK Evaluations as their top vendor assessment resource.
- Security boosts loyalty: 96% say cybersecurity offerings improve client retention.
- Consolidation is top of mind: 94% of MSPs are actively seeking a unified cybersecurity platform.
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