Cybersecurity the top MSP revenue driver

Kaseya has released its 2024 MSP Benchmark Report, which surveyed 1,000 MSPs from the Americas, EMEA and APAC regions and includes responses from both IT professionals and executives. Notably, cybersecurity remained a top priority and an area of growth for MSPs, with 73% saying it's a top revenue driver for their business.

Cybersecurity: A top challenge and area of growth for IT professionals

The threat of cyberattacks continues to weigh on MSPs and their clients. The report found that a staggering 78% of respondents consider cybersecurity as a top IT challenge, compared to 67% the year prior, and highlighted the importance of businesses continuing to invest in the right technology to protect against ever-evolving cybersecurity threats.

There is positive news for the SMBs that have prioritized investments in the right technology and IT partners. There are fewer SMBs being hit by cyberattacks – a majority of MSPs (64%) said that less than 10% of their SMBs customers experienced a cyberattack this year. MSPs are seen as a valuable cybersecurity resource for customers, with almost half (46%) saying most of their clients turn to them for advice on cybersecurity plans and best practices.

"Cybersecurity remains a critical concern for MSPs, driven by two factors: the escalating threat landscape, and the persistent challenge proving high quality security services across all of their clients," explained 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 cybersecurity 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."

Automation and integration are key to solving IT challenges

The MSP Benchmark Report found that investing in IT management solutions with built-in automation integration capabilities is a top priority, as 85% of participants shared that automation is a must-have. While automation increases efficiency, integration helps create a unified system: 67% of IT executives believe integration between core MSP applications is very important for their work.

Over three quarters of participants (75%) agreed that integration between applications is a time-saving measure, and almost an equal amount (70%) believe that integration drives efficiency. With both integration and automation, businesses are saving time and money, streamlining IT operations and ultimately contributing to better business outcomes.

AI adoption and skilling in the spotlight

Many IT professionals are eager to use AI to address pain points in their jobs and achieve more balance. A third of respondents (33%) predicted they’ll use AI to streamline otherwise tedious IT tasks. While MSPs and their clients are leaning into the adoption of AI and machine learning, implementing these technologies will be challenging, according to 37% of MSPs.

From AI and machine learning to automation and integration – technology is rapidly changing, and MSPs are adapting as quickly as they can to stay at the forefront. Attracting skilled IT professionals who understand these new technologies is not only harder, but more expensive too. Respondents say hiring is the third most critical challenge for MSPs in 2024.