MSPs Becoming Key Security Strategic Partners: Barracuda Report

With the growing sophistication of cyberthreats, a proliferation of security tools, and the rise of AI and other advanced technologies, the role of MSPs is shifting from simple service providers to strategic security partners.

“MSPs are no longer called when something breaks or a password needs to be reset,” wrote Guardz, which offers an AI-based unified cybersecurity platform for MSPs, in a June blog post. “MSPs act as trusted advisors or business partners, providing clients with strategic guidance on reducing risk, allocating budget effectively, and building long-term cybersecurity roadmaps.”

A new survey from Barracuda Networks puts numbers to that shift and offers insight into what organizations want from MSPs in a fast-changing cybersecurity landscape. One standout finding from the MSP Customer Insight Report 2025: companies want strategic partnerships with MSPs - and midmarket businesses are leading the charge, even more than SMBs, which have traditionally leaned on MSPs for cybersecurity support.

About 73% of the 2,000 IT and security decision-makers surveyed across the Americas, Europe, and Asia-Pacific said they already work with MSPs for some or all of their cybersecurity needs. That number climbs to 96% when including those evaluating or considering MSP support.

Midmarket Is Calling for Help

Eighty-five percent of organizations with 1,000 to 2,000 employees rely on MSPs for cybersecurity support, compared to 61% of smaller companies with 50 to 100 employees.

“This higher level of MSP engagement may reflect the fact that larger organizations face greater security complexity and have more tools to manage,” the report noted. “For example, larger organizations tend to be more concerned about the growing complexity of their security environments (42%) and the rising complexity of cyberattacks (46%). For the smallest companies, the corresponding figures are 32% and 34%.”

Richard Flanders, commercial director at Barracuda partner Aura Technology, said in a statement that “companies with 1,000-plus users (are) looking for co-managed services and skills to provide an effective protective shield 24/7. This can be a great starting point for additional business opportunities. MSPs that can’t adapt to this new reality will struggle to survive.”

The survey also flagged a “slightly worrying” 10% of small businesses that said they have no plans to use MSPs for cybersecurity, even though they typically have fewer in-house resources. That, the report warned, leaves them more vulnerable to attack.

Organizations face a growing list of challenges that are driving them toward MSPs, starting with the need to manage increasingly complex cybersecurity environments. According to the survey, 52% of respondents said they need help managing the sheer number of security tools they use. Close behind, 51% are looking for help evolving their security strategy as they grow.

“From the customers’ perspective, the ideal MSP partner offers both practical, tech-focused support and strategic help with security plans and compliance,” the report said. “The top responses suggest that MSPs play a key role in helping organizations manage the security implications of business growth.”

Additionally, 48% want MSPs to provide 24/7 security support, while 39% are already looking ahead to AI and machine learning tools, expecting to need MSP support in that area in the coming years.

AI Demand Is Building

“AI and network security are areas of growing business focus, security vulnerability, and technical complexity,” the authors wrote. “They can be hard to understand, especially for the 48% of organizations that are understaffed.”

The survey breaks down AI readiness by company size. Among SMBs, 29% already get MSP help with AI, and 44% expect to need it in the next two years. For larger organizations, 44% are already working with MSPs on AI and 37% expect to need support soon.

“This suggests that larger organizations already understand the limitations of managing AI and machine learning on their own and are turning to MSPs to optimize both IT and security outcomes,” the authors wrote. “A similar pattern, though less pronounced, applies to network security.”

Roy de Bruijn, commercial director at Barracuda partner Tredion, noted that the “findings underscore the importance of AI and advanced security measures for both MSPs and their customers. MSPs need these capabilities to stay relevant and deliver real value. We’re seeing more large organizations seeking MSP support for highly specific and complex IT security challenges.”

Opportunities and Risks for MSPs

The report outlines both the upsides and potential pitfalls for MSPs in this evolving environment. The good news: 92% of respondents said they’re willing to pay more for the right security support. In fact, 70% said they’d pay 10% to 25% more. Top areas where they’re willing to invest include AI tools, cloud security, and network security.

The bad news: customers will walk if MSPs can’t deliver. About 45% said they’d switch providers if their MSP lacked the expertise to deliver around-the-clock support or recover from an attack.

“The findings show that when it comes to sticking with an MSP partner, loyalty is limited and hinges on the customer’s confidence in the provider’s expertise, quality, and business stability,” the authors wrote. “Only 2% of respondents said they couldn’t imagine switching MSPs. For everyone else, there are clear deal breakers.”