Here’s a sobering finding: The 2025 Syncro MSP Survey uncovered that nearly one in three MSPs have experienced a preventable client data-loss event in the past year—a costly reminder that even seasoned providers are struggling to keep pace with the complexity of modern Microsoft 365 management. As cloud ecosystems evolve, so too do the risks: fragmented tools, inconsistent security baselines, and overlooked identity gaps that can turn minor missteps into major business disruptions.
In 2025, MSPs stand at a crossroads. They’re not just supporting client uptime; they’re also defending entire digital ecosystems where one configuration error can ripple across dozens of tenants. The pressure to deliver protection that’s not only effective but sustainable has never been higher.
The 2025 Syncro MSP Survey captures how these pressures collide, and how providers can improve business operations through simplicity, standardization, and proactive security.
Fragmented Tooling Is Fueling Operational Friction
Nearly 40% of MSPs cited operational complexity and lack of integrated tooling as their top barriers to effectively managing Microsoft 365 environments.
That’s not just a workflow problem; it’s a risk problem. Each disconnected tool or manual process introduces opportunities for configuration drift, inconsistent policy enforcement, and overlooked vulnerabilities.
In an environment where most MSPs manage dozens of Microsoft 365 tenants, every disconnected system multiplies the potential for misconfigurations and, therefore, missed opportunities.
As one of the report’s three imperatives, simplifying complexity emerges as the foundation for scalable, secure service delivery. MSPs that consolidate operations under unified platforms are finding they can maintain greater visibility, reduce technician fatigue, and deliver more repeatable results across tenants.
The Backup Gap Is Still Too Wide
When it comes to protecting client data, the survey exposes a lingering misconception: many MSPs still treat Microsoft’s built-in redundancy as a substitute for a true backup strategy. The data tells a different story.
Nearly 29% of respondents experienced a preventable data-loss incident, one that could have been avoided with a dedicated backup solution.
But the bigger insight is this: MSPs can’t stop at data alone. Protecting Microsoft 365 files without also backing up Entra ID configurations—the users, groups, and access policies that govern that data—creates a false sense of security.
As the report puts it, data + identity = resilience. Backing up one without the other leaves clients exposed to downtime, compliance risk, and operational chaos when recovery matters most.
Reactive Security Practices Are Holding MSPs Back
While most providers understand the importance of maintaining strong security baselines, implementation and enforcement remain inconsistent.
The survey revealed that nearly a third of MSPs only revisit applied baselines after a security incident has already occurred. That reactive approach can turn minor misconfigurations into major breaches.
And the reasons for the reactivity are familiar: technical complexity, lack of automation, and client resistance to change, especially when new measures like MFA disrupt old habits. Yet the survey makes a valid case that proactive, automated baseline management is strong marker of MSP maturity.
At the end of the day, automation should be viewed and leveraged as both a time-saver and a safeguard. It ensures that best practices are applied consistently and frees technicians to focus on higher-value strategies rather than repetitive maintenance.
From Defense to Prevention: The Next Evolution of MSP Security
The survey shows that the next evolution for MSPs lies not in firefighting, but in foresight. The most resilient providers aren’t merely plugging gaps or responding to alerts. They’re reshaping their entire security posture around prevention.
Investments in proactive protection deliver exponentially higher ROI than any post-incident response could. By embracing simplicity, automation, and standardization, MSPs can scale confidently while strengthening trust with every client they serve.
Download the Full 2025 Syncro MSP Survey
The 2025 report goes beyond stats to explore how leading MSPs are modernizing Microsoft 365 management—bridging the divide between data and identity protection, automating baseline reviews, and consolidating toolsets for smarter security.
Download the full report to dive deeper into the findings and explore practical recommendations for adapting to the next era of Microsoft 365 security and management.
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