Introduction
Does doubling your MSP’s revenue without doubling your staff sound impossible?
Not according to our latest survey of over 200 small to mid-sized MSPs. In fact, 90% of these businesses expect to grow through 2025, even as 30% worry about a potential recession.
This optimism isn’t unfounded. The demand for managed IT services is surging across industries. But with growth comes new challenges. Our survey revealed three main concerns keeping MSP owners up at night:
- Security and cyber attacks
- Sales and competition
- Cash flow and profitability
- These issues are interconnected and complex. As your client base expands, so does your attack surface. Standing out in a crowded market becomes harder. And scaling efficiently? That’s the holy grail.
But here’s the kicker: many MSPs are overlooking a critical tool that could address all these challenges at once.
Top Three MSP Concerns
Our survey results were clear: growth and profitability are the two top priorities for MSPs in 2025, outpacing all other concerns by a wide margin. While MSPs are optimistic about their growth trajectory, achieving these goals isn’t straightforward. Let’s break down the three key pressure points MSPs face:
Cybersecurity Threats
As your MSP grows, so does your responsibility to keep clients safe. With more businesses relying on MSPs for IT services, managing complex and evolving cyber threats becomes increasingly challenging. Security breaches or vulnerabilities can lead to costly downtime and damage client relationships, making cybersecurity a top concern for MSPs aiming to scale.
Sales and Competition
The MSP market is crowded, and standing out is harder than ever. How do you differentiate your services when everyone claims to offer “best-in-class” solutions? The challenge is twofold: attracting new clients while retaining existing ones. To succeed, MSPs need to go beyond just winning new business. They must set themselves apart through value-added services, innovative pricing strategies, and exceptional customer service..
Profitability
Growth is great, but not if it comes at the cost of profitability. Scaling operations while maintaining healthy margins is a delicate balancing act. Many MSPs struggle to grow efficiently, often finding that increased revenue doesn’t always translate to higher profits. The key question is: how do you expand your client base without proportionally increasing your costs? As MSPs grow, they must ensure that their tools and processes support operational efficiency without becoming a financial burden.
These three areas — cybersecurity, competition, and profitability — are the primary stress points that MSPs will need to address as they expand their businesses in 2025.
Interestingly, our survey uncovered a common thread running through all these issues: the tools MSPs use to run their businesses. Specifically, RMM and PSA solutions play a key role in addressing these concerns.
Are RMM and PSA Solutions Holding MSPs Back?
The need for RMM and PSA solutions in the MSP industry is well-established. These tools are the backbone of MSP operations, enabling efficient service delivery, client management, and business growth. However, our survey reveals a concerning trend: widespread dissatisfaction with existing RMM and PSA solutions.
Evaluating Tools: RMM and PSA Solutions
Our survey confirms that 96% of small to mid-sized MSPs have at least one commercial RMM or PSA solution in place. However, the satisfaction levels with these tools are alarmingly low. The Net Promoter Score (NPS) for RMM vendors is a mere 13, while PSA vendors fare even worse with an NPS of 0.
These low scores indicate that while MSPs recognize the necessity of these tools, they’re far from happy with their current options. Many MSPs report that their existing solutions lack the features necessary to support their growing businesses. They struggle with poor scalability, integration challenges, inadequate reporting, and subpar user experiences.
Why MSPs Are Hesitant to Switch
Despite these challenges, our survey revealed an interesting trend: only about 5-6% of MSPs plan to switch solutions in the next 12-18 months. This reluctance to change, despite clear dissatisfaction, suggests that many MSPs may be stuck in a “better the devil you know” mindset.
The primary reasons for this hesitation are the perceived disruptions, comfort with familiarity, and costs associated with switching. Implementing a new tool often requires retraining staff, migrating data, and integrating the new system with existing workflows. Many MSPs prefer to stick with what they know — even if the current system isn’t perfect — as the familiarity it offers may outweigh the perceived risks of switching to something new.
The Opportunity for Forward-Thinking MSPs
This situation presents a significant opportunity for forward-thinking MSPs. By seeking out and adopting more advanced, feature-rich RMM and PSA solutions, these MSPs can gain a competitive edge. Improved tools can lead to enhanced efficiency, better service delivery, and ultimately, accelerated growth and profitability.
MSPs willing to invest in better, more scalable tools now may find themselves in a prime position to outpace competitors. These early adopters can benefit from improved efficiency, better client service, data-driven decision making, and scalability. More advanced tools can automate more tasks, freeing up technicians for higher-value work.
Enhanced monitoring and management capabilities can lead to proactive problem-solving and improved client satisfaction. More robust reporting and analytics features can provide valuable insights for strategic planning and growth. And tools designed for growth can eliminate the need for future painful transitions as the business expands.
How the Right RMM and PSA Solutions Drive Growth and Profitability
As we’ve seen, many MSPs are struggling with their current RMM and PSA solutions. But what does an ideal solution look like? How can the right tools address the key challenges of cybersecurity, competition, and profitability that MSPs face? Let’s dive into the specific features and capabilities that forward-thinking MSPs should look for in their next RMM/PSA solution.
Our survey highlighted two primary challenges that drive MSPs to switch (or first adopt) RMM and PSA solutions: sub-par functionality from existing tools and inability to support team growth. The best RMM/PSA solutions address these issues head-on, striking a balance between cost efficiency and functionality at scale.
Here’s what to look for in your next RMM/PSA solution to achieve that balance:
- Advanced Security Features: With cybersecurity being a top concern, look for solutions that offer robust security features. This includes advanced threat detection, automated patch management, and integrated backup and disaster recovery options. The right tool should help you protect your clients proactively, not just react to threats.
- Scalable Architecture: As your MSP grows, your tools should grow with you. Look for cloud-based solutions that can easily scale up or down based on your needs. This flexibility ensures you’re not paying for more than you need while still having room to expand.
- Automation Capabilities: To improve efficiency and profitability, seek out solutions with strong automation features. This could include automated ticket routing, scripting capabilities for routine tasks, and automated reporting. The more you can automate, the more time your team has for high-value activities.
- Comprehensive Reporting: Data-driven decision-making is key to profitability. Look for solutions that offer detailed, customizable reports on everything from technician productivity to client profitability. These insights can help you optimize your operations and identify new revenue opportunities.
- Integration Flexibility: Your RMM/PSA solution should play well with others. Look for tools that offer robust APIs and pre-built integrations with other common MSP tools. This can help streamline your workflows and reduce data silos.
- User-Friendly Interface: A tool is only as good as its adoption rate. Look for solutions with intuitive interfaces that your team will actually want to use. This can significantly reduce training time and improve overall efficiency.
- Client Portal: A self-service client portal can set you apart from competitors. Look for solutions that offer branded client portals where your customers can submit tickets, view reports, and access documentation.
- Mobile Support: The ability to manage your MSP on-the-go is crucial. Look for solutions with robust mobile apps that allow your team to stay productive from anywhere.
- Predictable Pricing: To maintain profitability, you need clear, predictable pricing. Look for vendors that offer transparent pricing models without hidden fees or unexpected charges as you scale.
- Strong Customer Support: Finally, don’t underestimate the importance of vendor support. Look for providers with a track record of responsive, helpful customer service. This can be a lifesaver when you’re dealing with critical issues or complex integrations.
By prioritizing these features in your RMM/PSA solution, you can address the key challenges we identified earlier. Advanced security features help you tackle cybersecurity concerns. A user-friendly interface, comprehensive reporting, and a client portal can help you stand out from the competition. And scalable architecture, automation capabilities, and predictable pricing all contribute to improved profitability.
Remember, the goal isn’t just to find a tool that works for you today, but one that will support your growth and evolution in the coming years. By investing in the right RMM/PSA solution now, you can position your MSP for success in 2025 and beyond.
2025 MSP Outlook: Embracing Change for Success
As we look towards 2025, the MSP industry is set for significant growth and transformation. Our survey reveals that while growth and profitability remain top priorities for MSPs, achieving these goals requires navigating complex challenges in security, competition, and scalability.
MSPs investing in better, more scalable tools now stand to gain a substantial competitive edge. By addressing current pain points and preparing for future growth, these early adopters can position themselves at the forefront of the industry. The right RMM and PSA solutions can drive sustainable success, improved security, and long-term profitability.