More businesses now want managed security on top of managed IT, new survey shows

Managed service providers (MSPs) are facing increasing pressure to expand their security services as businesses recognize the growing complexity of the cyber threat landscape. According to a new survey by CyberSmart, two-thirds (65%) of clients now expect their MSPs to manage either their cybersecurity infrastructure or both their IT and cybersecurity operations.

The survey, conducted by OnePoll in the spring of 2024, polled 250 senior leaders at UK-based MSPs. It revealed that this growing demand for security services is becoming a central aspect of MSPs' business strategies. Over 70% of the respondents noted a heightened interest from their customers in security offerings, with 22% reporting a significant increase in demand.

This shift in customer expectations is driven by several factors, including the increasing sophistication of cyberattacks, the growing regulatory burden on businesses, and the lack of cybersecurity talent. A third of respondents indicated that only 20% or less of their customers have an in-house cybersecurity role, leaving MSPs to fill this critical gap.

To meet this demand, MSPs are investing heavily in their security capabilities. According to the survey, 33% of MSPs have increased their budgets for security capabilities, while 28% have expanded their budget for regulatory compliance. Recruitment has risen, with 28% of MSP leaders hiring specialist cybersecurity staff and 14% bringing in regulatory experts.

However, the report also highlights the challenges faced by MSPs. The majority of MSPs have experienced at least one data breach in the past year, underscoring the risks associated with managing sensitive customer data.

"MSPs are on the frontline of the cyber battle," said Jamie Akhtar, co-founder and CEO of CyberSmart. "They are essential to the health of our digital economy, but they also need to be supported and protected."

The survey identified ransomware/malware infection (57%) as the leading threat to MSPs, followed by inflation and rising costs (43%), and then exploitation of unpatched or undisclosed vulnerabilities (41%).

Akhtar called for greater collaboration between MSPs, cybersecurity vendors, and regulators to address the growing challenges facing the industry.

As the demand for managed security services continues to grow, MSPs will need to invest in the right tools, technologies, and talent to protect their clients and their own businesses.