New market data from Canalys. In 2025, the IT managed services industry is set to grow significantly, with revenues expected to reach approximately 595 billion dollars globally, marking a year-on-year increase of around 13 percent. The Asia-Pacific region is projected to lead this growth, with an increase of about 15 percent. As demand for cybersecurity services rises, the managed services provider model is shifting towards a security-first approach, driven by new buying behaviors from customers. A recent Canalys survey revealed that 61 percent of partners struggle to advance artificial intelligence projects beyond the proof-of-concept stage. Compliance and regulation will present key challenges for managed services providers, particularly with the introduction of new regulations like the Digital Operational Resilience Act in the European Union. Meanwhile, mergers and acquisitions within the sector are expected to rebound in 2025, following a slowdown in 2024. Overall, the convergence of cloud marketplaces and distribution channels is reshaping the landscape, as over 70 percent of all IT revenue flows through these channels, emphasizing the need for partners to enhance their value proposition in delivering services.
A recent study by Techaisle highlights that small and medium-sized businesses spend a staggering seventy-seven percent of their IT staff’s time on PC maintenance and support. As artificial intelligence technology evolves, AI PCs are expected to account for up to twenty-eight percent of all PC purchases in twenty twenty-five. The survey of two thousand businesses revealed that sixty-four percent believe performance optimization will be essential, while fifty-six percent emphasize the need for AI software deployment and management. Additionally, forty-nine percent identify on-device security as a critical requirement. The rise of AI PCs presents both challenges and opportunities, necessitating new skills and services from IT providers to meet the unique needs of these advanced devices. As businesses embrace AI, user training and energy efficiency will also become increasingly important, with forty-five percent of respondents emphasizing the necessity of educating users on AI engagement. With these evolving demands, channel partners and PC manufacturers are encouraged to develop specialized support services and solutions to help businesses maximize the potential of AI technology.
A recent survey by Rackspace Technology reveals that over ninety percent of IT decision-makers anticipate significant shifts in enterprise cloud strategies over the next two years. Nearly half of the enterprises surveyed plan to enhance their hybrid cloud capabilities, while one in five intends to invest in private cloud solutions. The rise of artificial intelligence is driving these changes, prompting IT leaders to rethink their workload management approaches. Security and compliance concerns, along with the rising costs of running artificial intelligence applications in the public cloud, have led two-thirds of respondents to consider moving workloads back to on-premises infrastructure. As hybrid strategies become more common, IT teams are finding it easier to transfer data between multiple cloud providers, with major cloud companies like Amazon Web Services, Microsoft, and Google Cloud reducing data transfer costs.
Why do we care?
The Techaisle research highlights a thought I’ve been having a lot lately. Why is technology requiring so much maintenance and support? Lump cybersecurity into that bucket too.
Whether it’s managed services providers grappling with compliance, businesses spending the majority of their IT team’s time on PC maintenance, or cloud strategies shifting due to operational costs, there’s a common thread: the cost of managing technology is unsustainably high. The data underlines an ongoing trend—the technology ecosystem is increasingly complex, fragmented, and expensive to maintain, raising critical questions for IT service providers.
Put on our customer hat for a moment. Customers aren’t buying just because of better technology—they’re buying because they’re overwhelmed. Security, compliance, and cloud migrations are forcing businesses to outsource expertise. However, this model isn’t infinitely scalable, particularly when MSPs themselves face hurdles in AI adoption and new regulatory burdens.
If the trend of increasing IT complexity continues unchecked, both IT providers and their customers will struggle with diminishing returns.
The MSP industry risks becoming a margin-squeezed middle layer. Providers need to focus on deep expertise in niche areas or risk being overshadowed by marketplace automation. MSPs could face growing resistance from clients unwilling to pay for what increasingly feels like a necessary evil rather than a strategic investment.
This is a time for focused, strategic investments—not blind growth.