are optimistic . “ Whichever way you look at this world , it ’ s kind of dark right now — unless you ’ re an MSP ,” he says . “ Every time we ask them , [ about ] 72 % are in total optimism growth mode .”
McBain does agree with Warren , though . “ The long tail of MSPs that haven ’ t really engaged in marketing and selling and operational and financial growth , who still operate the business like they did five or 10 years ago , are not seeing growth . And by the way , they ’ re losing money .”
So how will business be different for MSPs , and what new challenges and opportunities lie ahead ? We asked industry experts to weigh in on six key areas for MSPs : the economy , client acquisition , AI , cybersecurity , hiring / retention , and M & A .
The Economic Outlook
Prepare For The Bump , Then The Grind
In 2024 , many MSPs saw sales slow . “ We ’ re in probably one of the lowest new business creation markets that we ’ ve seen for quite some time ,” says Greg Crabtree , author of Simple Numbers . As a result , he says , “ MSPs are still in that ‘ street fight ’ mode . You ’ ve got to go take somebody ’ s customer away from them .”
He points to MSPs that followed that playbook . “ We had clients who had 25 % growth this year over last year , in a market that is known to be down 5 %. They grew 25 % because they picked up work from failing competitors .”
Overall for 2025 , Crabtree says it looks “ pretty good ” barring any supply chain disruptions or new military conflicts . He expects that post-election , there will be positive growth for at least three quarters , and then a stall .
MSPs that lean into growth with effective communications , targeted marketing to “ necessary ” vs . discretionary businesses , and “ a human that is interacting with potential sales targets ... could easily grow 10 %– 15 %,” Crabtree says , which includes at least 5 % price increases . “ But I think it ’ s going to take active [ work ]— go punch some competitors that are weak and take their clients away from them — rather than sit back and wait for somebody to call you .”
For MSPs that do get a bump in sales the first part of the year , Crabtree cautions them against adding permanent infrastructure “ until you know for sure that you obtained a new level of performance that you can hold on to .”
Instead , he suggests , “ stretch your labor to be highly optimized . Challenge people to break the 4-minute mile .”
Smaller MSPs , however , can expect a tougher competitive mountain to climb facing “ super MSPs ” backed by private equity that are now rolled up into more of a franchise model with shared resources , says McBain . “ How do you compete on unit economics when you have eight people and your competitor across the street , who used to have eight people , is now ‘ McDonald ’ s ’ and they ’ re selling burgers left , right , and center ?”
One way MSPs can better compete is to lower their cost of goods sold and increase both profits and tech efficiency , which can be easier said than done with a disparate tool stack . Kaseya has been leading the way with its strategic plan to change the unit economics for MSPs with lower-priced all-in-one solutions like Kaseya 365 Endpoint , introduced in April , and Kaseya 365 User ( see page 14 ) that feature integrated solutions with a similar look and feel . Other vendors have since followed suit , such as NinjaOne and HaloPSA , and ConnectWise pledges to do so at the first of the year , according to company executives .
Customer Acquisition And Experience
The Double-Edged Sword Of AI
Customer acquisition and retention will be key in Crabtree ’ s “ street fight ” economy . John DiJulius , an authority on customer service and president of The DiJulius Group consultancy , says AI and automation will make it easier to get in front of customers with targeted marketing .
Reed Warren , CEO iT Valuations
Jay McBain , Principal Analyst Canalys
Greg Crabtree , Author Of Simple Numbers
John DiJulius , President The DiJulius Group
Seth Robinson , VP Of Industry Research , CompTIA
Paul Cissel , CEO Growth Caddie
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