A recent survey conducted by Barracuda Networks reveals that 73% of organizations with up to 2,000 employees are relying on managed service providers, or MSPs, to navigate the complexities of modern cybersecurity. This dependency underscores the critical role that MSPs play in helping businesses manage increasing security challenges as they grow. The MSP Customer Insight Report 2025 highlights that 52% of surveyed organizations seek assistance from MSPs to manage a growing number of disconnected security tools, and nearly half rely on them for round-the-clock security coverage. Furthermore, 85% of organizations with 1,000 to 2,000 employees now depend on MSPs for security support, marking a significant shift from the traditional reliance of smaller businesses. The survey, which gathered insights from 2,000 IT and security decision-makers globally, indicates a willingness among 92% of organizations to pay a premium for enhanced support in integrating their security tools.
Customers expect their managed service providers to demonstrate technical mastery and deliver ongoing value, with 48% wanting 24/7 security coverage. Notably, 45% of respondents in Europe, the Middle East, and Africa would consider switching providers if they did not see clear evidence of support capabilities. Additionally, transparency about internal security practices is vital, as 38% of organizations would look elsewhere if their provider lacked openness about their security posture.
New data from Skyquest shows The global managed IT infrastructure services market is set to grow significantly, projected to increase from 117.5 billion dollars in 2024 to 239.47 billion dollars by 2032, with a compound annual growth rate of 9.3 percent. This growth is largely driven by rising demand for cloud-based security services and the increasing complexity of IT environments.
Why do we care?
Barracuda’s survey reads like a love letter to MSPs—“Look how important you are to cybersecurity!” But let’s not get blinded by the flattery. This is a wake-up call, not a victory lap.
Here’s the real headline: midmarket organizations are outsourcing security pain, not responsibility. 85% of firms in the 1k–2k seat range now rely on MSPs for security support. Great—except they’re also the most demanding, least forgiving segment we’ve ever seen.
- Half of them want 24/7 coverage. That’s SOC-level service, not after-hours pager duty.
- 38% will drop you cold if you’re not transparent about your own security. So if you’re still running “security light” internally, your clients will find out—and they’ll leave.
- 92% are willing to pay a premium… but only for proven outcomes. Which means if your security stack looks like a vendor reseller catalog and not an integrated defense strategy, you’re a dead man walking.
And don’t miss this: while MSPs think they’re indispensable, vendors are quietly building direct midmarket relationships. The MSP may be the middleman today—but in this market, middlemen are expendable.
This isn’t about adding another tool to your stack. It’s about becoming the orchestrator of security outcomes for clients drowning in complexity.
Here’s the play:
- Build integration capabilities—be the glue across disconnected security tools.
- Invest in SOC partnerships or build one if you dare.
- Get your house in order—ISO 27001, SOC 2, regular pen testing—then market the hell out of it.
Otherwise, your “trusted advisor” badge won’t mean squat when clients take their premium dollars somewhere else.
This is your midmarket moment. But it only goes to MSPs who can act like security generals, not security resellers.