MSP Pulse-Check: Has MSP 3.0 arrived?

At the start of the year, research firm Canalys set the tone with some bold predictions: the rise of MSP 3.0, which would include an AI-augmented channel, shifting customer behaviours, and a booming cybersecurity market.  

Now, with 2025 in full swing, it’s fair to ask: how much of that forecast is fact, and how much is still fantasy? 

Welcome to MSP 3.0 

Spoiler alert: MSP 3.0 is no longer just a talking point, it’s happening. Significant change is occurring across the MSP sector, and many of the report's themes are playing out. But progress is far from consistent – or painless.  

MSP 3.0 signals a shift beyond technical delivery to strategic enablement. While most MSPs still offer traditional services like first-line support, monitoring, and maintenance, there is a convergence between professional services and managed services. This is giving rise to a whole new raft of solutions, delivery models, and expectations, at a pace not seen before. 

Buyers are changing - Fast. MSPs need to catch up 

Today’s buyers are increasingly digital natives: younger, more tech-savvy, and more confident in their understanding of IT. And while the report is right - this shift is having a big impact on the MSP sector - it’s not necessarily in the way Canalys predicted. 

Buyers now expect MSPs to operate differently. They want partners who behave more like DevOps teams, with daily stand-ups, agile delivery, and continuous iteration. 

Customers don’t want to spend days, weeks, or even months on impact assessments, quotes, and lengthy delivery cycles in the traditional MSP model. They expect time-to-value in days, sometimes even hours.  

MSPs are already adapting, driven by automation and AI. But the knock-on effect of this is that customers are demanding a leaner cost base and faster outcomes because they know AI is now built into many platforms. They don’t want to pay a premium for business analysts or technical engineers to do what AI can increasingly handle. 

AI is here – but only at the experimental phase 

The AI hype is real. But as the report notes, so are the roadblocks.  Real Agentic AI - where systems act autonomously on behalf of users - is not yet widespread, and it will take longer than just 2025 to reach maturity. 

2024 was dubbed by many market watchers as ‘the year of AI,’ then quickly changed to ‘the year of experimentation’. The hope was that 2025 would be when AI got real. So far, that hasn’t fully materialised. 

Despite the vendor noise and growing customer interest, few live implementations are in place. Canalys’ figure that over 60% of partners still struggle to move AI projects beyond proof-of-concept feels accurate. 

However, there’s growing interest in Agentic AI.  Self-healing servers and networks are already well-established and customers are now exploring concepts like service as software, where multiple AI agents chain together to perform tasks that, just 18 months ago, were too complex for automation. 

However, costs remain high, and implementation is risky. With no clear market leader, customers are hesitant to invest, fearing vendor shifts or backing the wrong horse. Still, the promise of Agentic AI is compelling and there will no doubt be a wave of real-world adoption and deal activity towards the end of the year. 

Security is booming 

Tech-savvy buyers are also far more focused on security, and that’s been evident for several years. As the Canalys report highlights, customers don’t want security as an add-on — they expect it built into every service. The forecasted 15% growth in managed security services is real — and a huge opportunity. 

But in the era of MSP 3.0, the nature of security has changed. It’s It's evolved from boundary protection of offices and data centres to enabling a secure but consistent frictionless experience from any device in any location to SaaS services via multiple layers of protection. Today’s security means pulling together multiple technologies to deliver integrated protection. 

Security is now a board-level issue, driven by regulation and compliance, areas where customers expect MSPs to be fluent. 

More than just an MSP  

But customers want more than just integrated security. They expect knowledge of compliance, regulation, and vertical-specific risks. That’s not just due to demographic shifts, but because the lines between IT, compliance, and cybersecurity are increasingly blurred — and that’s reshaping the MSP value proposition. 

Regulatory frameworks like DORA are game changers, especially in the finance sector. The implications of non-compliance are significant, and more customers are placing it at the top of their agenda. Insurance and legal risks are also growing, and customers are now expecting MSPs to understand and address those angles too. 

While only a few MSPs are partnering with legal or insurance firms today, this broader expectation from customers is pushing the industry toward a more ecosystem-led approach. 

What’s next? 

Although we are only part way through 2025, many of Canalys’ predictions are already happening, albeit not necessarily quite as quickly or in quite the same way as the research firm has stated.  

The evolution to MSP 3.0 is real. With the global managed services market set to grow 13% this year and hit $595bn, it’s safe to say that this kind of scale doesn't come from sticking to the old playbook. 

For MSPs, it’s a time of transformation. But if there is one thing MSPs are experts in it’s adapting to change. The winners will be those who embrace agility, align with emerging customer needs, and deliver outcomes that go beyond technology.  

The smart MSPs aren’t just waiting for MSP 4.0 - they’re actively building it.