In today’s fast-changing digital world, Managed Service Providers (MSPs) feel increasing pressure to offer more value, protection, and automation while keeping costs and complexity in check.
Despite the strong demand for IT and cybersecurity services, many MSPs find it hard to grow. What holds them back? What can software-security partners learn from these issues?
Let’s identify the hidden obstacles MSPs face in scaling and see how strategic partnerships and smarter use of security technology can turn these challenges into growth opportunities.
Operational Overload: Too Many Tools, Not Enough Integration
As MSPs expand their services, they often use multiple platforms for monitoring, ticketing, endpoint protection, patch management, and more. This creates tool sprawl—a confusing mix of unconnected systems that waste time, lower efficiency, and raise the risk of mistakes.
Lesson for software-security partners:
MSPs want simplicity and systems that work well together. Security vendors who provide centralized dashboards, open APIs, and automated workflows can become vital allies, not just another tool in the mix.
Talent Shortages and Skill Gaps
The IT security industry is experiencing a global shortage of skilled workers. MSPs struggle to find and keep technicians who are knowledgeable in both system administration and advanced cybersecurity.
Lesson for software-security partners:
Focus on training, shared security models, and AI-driven automation that help MSPs bridge the talent gap. Your product should ease manual tasks or simplify complex operations to support growth.
Reactive vs. Proactive Security Approach
Many MSPs still react to incidents instead of preventing them. This reactive approach takes up time, limits growth, and weakens client trust.
Lesson for software-security partners:
Equip MSPs with predictive analytics, continuous monitoring, and threat intelligence. Help them move from reactive service delivery to a proactive, prevention-focused model.
Pricing Pressures and Profit Margins
Competition is tough. Clients want top-tier protection at small business prices, which makes it difficult for MSPs to keep healthy profit margins while delivering strong cybersecurity solutions.
Lesson for software-security partners:
Develop flexible pricing models and tiered solutions that meet MSPs’ varied client needs. Offer scalable licensing that grows with their number of customers rather than against it.
Weak Vendor Relationships and Lack of Partnership Support
Many MSPs view vendors as suppliers rather than partners, often because vendors do not provide adequate sales, marketing, and technical support.
Lesson for software-security partners:
Take a partner-first approach. Provide MSPs with co-brandable content, joint marketing efforts, and pre-built sales guides. Stronger partnerships lead to faster scaling and greater loyalty.
Compliance and Risk Management Complexities
As regulations change (GDPR, HIPAA, SOC 2, etc.), MSPs must ensure compliance across their clients’ systems, even if they are not experts in these laws.
Lesson for software-security partners:
Provide built-in compliance reporting and automated documentation features. Make it easier for MSPs to deliver compliant security services without needing legal experts.
Scaling Without Losing the Human Touch
Growth can weaken client relationships. As MSPs take on more clients, personal service often suffers, leading to client turnover and fewer referrals.
Lesson for software-security partners:
Promote customer experience automation and AI-powered communication tools that help MSPs personalize their services at scale. When MSPs can grow without losing trust, everyone benefits.
Partnership Is the New Growth Engine
Scaling in the MSP space is about more than just technology; it’s about strategic partnerships and mutual support. Software-security companies that truly understand the challenges MSPs face can become catalysts for growth, not just product vendors.
The future belongs to those who work together, where MSPs achieve scalability, and software-security partners build long-term loyalty.
