WatchGuard has introduced a new endpoint security portfolio aimed at changing how MSPs buy, package, and deliver endpoint protection. The update centers on a tiered licensing model that bundles capabilities often sold separately, including AI-driven detection, vulnerability management, and URL filtering. The goal is to reduce the operational and pricing friction that has built up around endpoint detection and response (EDR) over time.
Rethinking Pricing Around How MSPs Actually Operate
At the center of this shift is how pricing aligns with what MSPs actually need to deliver day-to-day security.
Adam Winston, VP of Endpoint Security and MDR at WatchGuard, explained to ChannelE2E, “The difference is the elimination of the 'Entry-Level Tax'. Most competitors bundle advanced features only into their most expensive enterprise tiers, forcing MSPs to upsell a client just to get basic necessities like vulnerability scanning or URL filtering.”
That framing points to a practical issue for MSPs. Pricing models often force providers to move customers into higher tiers to access baseline protections. This creates margin pressure and complicates service packaging, especially in the mid-market, where budgets are tighter, but threat exposure is rising. By including these capabilities across tiers, WatchGuard is trying to make pricing more predictable and easier to align with customer needs.
Reducing Operational Overhead in Multi-Tenant Environments
The platform also centers on operational simplicity, which is a growing concern in multi-tenant environments. A single agent and unified console are designed to reduce the time analysts spend switching between tools and correlating alerts. Winston describes the underlying problem clearly: “Security for MSPs requires a lot of attention and typically that time is spent looking for context and correlating between separate products, even if integrated through an RMM. A single agent, policy, and incident, and more importantly, a multi-faceted response on the network, identity, and endpoint are what's required to block attacks.”
For MSPs, that translates into less time per endpoint and fewer manual steps across detection and response workflows. As security stacks have expanded, the operational burden has shifted from deployment to ongoing management. Simplifying that layer is becoming just as important as improving detection itself.
Balancing Vendor Services with Partner Control
Another part of the strategy is how services are delivered and who owns the customer relationship. With built-in MDR and one-click add-ons, there is a natural question around whether vendors take over more of the service layer. WatchGuard’s positioning leaves room for partners to define their own model. Winston says, “MSPs must find non-conventional ways of creating recurring, high margin revenue to survive and security, which occupies a lot of labor in detection and response, is something they are continually relying on their vendors of EDR to provide. Allowing them to own critical proactive functions protecting organizations and offering more value-add services instead of over staffing on low alert clients or losing revenue on high-alerts customers they can focus on offering strategic advice like vCISOs would when it comes to security.”
This reflects a broader shift in how MSPs build security services. Instead of scaling purely through headcount, providers are looking for ways to automate routine work and move toward advisory-led models. That includes areas like risk planning, compliance, and vCISO services, where differentiation comes from expertise rather than tooling alone.
Why This Matters Now
Malware keeps growing, and attackers are increasingly using trusted tools and normal access paths. That puts more pressure on endpoint security across all organizations, not just large enterprises. Mid-market companies feel this the most, as risks rise faster than their resources can keep up.
For MSPs, this comes down to how they package and deliver endpoint security. Simpler pricing, built-in features, and less operational work make it easier to offer the same service across customers. That frees up time to focus on response, customer relationships, and higher-value services. As the market evolves, tools that deliver consistent results without adding complexity will stand out.
