Kaseya: Security a major revenue earner for MSPs

Security is a top concern for customers, which makes it a significant revenue driver for the vast majority of managed service providers (MSPs).

The Kaseya 2024 MSP benchmark survey report looked into where channel partners are experiencing growth, with 73% signalling security as a major source of income.

The report also revealed a movement by MSPs to adopt artificial intelligence (AI) to help automate tasks. However, there is a recognition that adopting the technology will require the right skills, with 37% of survey respondents seeing that as a challenge.

Sticking with the automation theme, another main finding from the survey was a desire by MSPs to use technology to link more of their operations. Many expressed frustration at not being able to fully exploit their software because of integration issues.

The result was that 85% viewed automation as a ‘must-have’ to unlock more efficiency and move towards a unified system to ease integration issues.

“Cyber security remains a critical concern for MSPs, driven by two factors: the escalating threat landscape, and the persistent challenge providing high-quality security services across all their clients,” said Mike Puglia, general manager of security products at Kaseya.

“This year, we’ve witnessed a heightened sense of urgency compared to previous years. Even those MSPs who demonstrate proficiency in cyber security wrestle with the strategic dilemma of resource allocation. Our research underscores the imperative for MSPs to bolster their efforts to meet the rapidly growing market demands,” he added.

The report revealed that MSPs are clearly helping customers with security, with 64% of respondents stating that less than 10% of their SME customers had been hit by a cyber attack this year. High numbers of partners are seen by users as trusted advisors on the topic and have developed deep relationships through the delivery of data protection products and services.

MSPs have noted increasing demand from customers for AI, machine learning and more automation tools, but getting into a position to deliver those is proving to be a challenge. Skilled staff are always a prized commodity, and the channel is again having to compete for people with knowledge in those areas to support their artificial intelligence sales.

The pressure on MSPs to remain at the forefront of technology innovations makes the need for skilled staff a widespread issue for many in the industry. As a result, a third of those surveyed said hiring was one of their most critical challenges in 2024.

The Kaseya report echoes findings from the latest TechTarget and ESG 2024 Technology Spending Intentions in EMEA research, which found users were looking to the channel to help with their cyber security needs.

The headline figure was that 84% of customers who indicated plans to leverage the support that MSPs could deliver. Reasons why the channel was seen as the solution were down to a range of challenges, including struggling with a shortage of in-house skills and talent.