The managed services landscape is changing quickly. For security vendors, the pressure is high. To stay competitive, vendors need to grasp the technical issues and the business dynamics that influence how MSPs choose, bundle, and deploy security solutions. In this post, we outline the key trends in the MSP market that every security vendor should watch and act on.
Security Is Becoming a Core Offering, Not Just an Add-On :
Traditionally, MSPs concentrated on remote monitoring, patching, backups, and basic infrastructure. Now, security is no longer optional. It has become essential. Enterprises expect MSPs to provide strong, proactive cyber defenses instead of just reactive fixes.
According to Omdia, the MSP model is shifting toward a “security first” approach, where cybersecurity, compliance, and regulation are fundamental rather than optional additions. Many clients see cyber risk as a business risk rather than just an IT issue, making security a key factor in choosing a vendor.
For security vendors, this means thinking in terms of platforms, services, and outcomes instead of just licenses for individual tools.
Move from Traditional Tools to MDR, XDR, and Zero Trust :
The traditional security stack antivirus, firewall, and signature-based detection can’t keep up with advanced threats.
MSPs are turning to Managed Detection and Response (MDR), Extended Detection and Response (XDR), Zero Trust, secure access architectures, and tools to stop data theft. Vendors that enable these advanced capabilities and integrate them well will have an advantage.
MSPs seek unified visibility across endpoints, networks, cloud, identities, and SaaS rather than using separate tools.
Tool Consolidation and Platform Play :
MSPs face “tool sprawl.” Managing multiple point solutions creates difficulties in integration, training, and support.
Vendors that provide modular, integrable, or all-in-one platforms make it easier for MSP adoption.
Having a single interface that can connect various security functions is increasingly desirable. Interoperability, APIs, and open architecture are essential for standing out.
AI, Automation, and Predictive Threat Modeling :
Automation is crucial; MSPs need to automate routine tasks like patching, alerts, and remediation to grow.
More advanced vendors are using AI and machine learning to sort alerts, spot anomalies, predict attacks, and automate responses. Predictive analytics can help foresee risks before they lead to damage.
Vendors should design systems that lessen manual work, reduce false positives, and support automatic responses.
Compliance, Regulation, and Liability Pressure :
As cyber risk becomes more regulated, MSPs face growing pressure to show security maturity and meet compliance standards.
Regulations such as NIS 2, CIRCIA, DORA, stricter data protection laws, and sector-specific standards in healthcare and financial services demand MSPs to elevate their security efforts. Vendors should assist MSPs by providing support for audit logs, reporting, role-based access, policy enforcement, and compliance tools.
Liability matters; service level agreements, warranties, proof of concept, and certifications are becoming more significant.
Channel and Partnership Models Evolving :
Security vendors need to rethink their market strategies through MSPs.
Co-selling, revenue sharing, margin incentives, training, enablement programs, and certification tiers are key elements. MSSP and MSP marketplaces, as well as cloud marketplaces like Azure, AWS, and Google, are becoming important channels.
Vendors who understand MSP economics, package use cases effectively, and recognize sales cycles will be preferred partners.
Human Risk and Behavior, Security Awareness :
An increasing number of breaches are caused by user error, like clicking on phishing links or misusing credentials.
MSP services are increasingly incorporating training, simulations, phishing tests, and user risk scoring.
Security vendors can offer or partner on modules for managing human risk or behavioral analytics. Showing a return on investment in reducing incidents caused by users can help vendors stand out.
Securing Cloud, SaaS, and Multi-Cloud Environments :
Many clients are using cloud, SaaS, hybrid, and multi-cloud setups, which create new vulnerabilities.
MSPs need to secure cloud infrastructure, SaaS applications, APIs, and data flows, and ensure identity access while integrating with cloud-native controls.
Vendors should provide visibility and controls across both cloud and on-premises systems and unify logs and threat detection across different environments. Complexity arises due to varied security models and features from different cloud providers.
Mergers, Consolidation, and Vendor Landscape Shifts :
Consolidation among vendors and MSPs is expected.
Smaller specialized tool providers may be bought by larger platform vendors.
MSP consolidation is ongoing, aiming for scale, better profit margins, and standardized offerings. Vendors need to be ready for changes in partnerships, acquisitions, and evolving relationships.
Data, Threat Intelligence, and Ecosystem Integration :
MSPs and vendors benefit from shared intelligence, integrations, and connections within the ecosystem.
Vendors with threat intelligence, behavioral analytics, community sharing, and data pipelines have an upper hand.
Integrating with ticketing systems, RMM/PSA tools, SIEMs, and identity platforms is essential. Vendors that offer APIs and flexibility empower MSPs to create custom workflows.
Implications for Security Vendors
From these trends, here’s how security vendors should respond:
- Flexible Pricing and Packaging: Usage-based, per-endpoint, tiered models, white-label options, and MSP bundles.
- Partner Enablement: Comprehensive training, certification, onboarding, co-marketing, and support programs.
- Trust and Proof: Certifications like ISO 27001 and SOC 2, case studies, security audits, and penetration test reports.
- Design for Modularity: Allow MSPs to select modules and integrate with their existing systems.
- Focus on Scalability and Reliability: Ensure high uptime, low maintenance, self-repairing systems, and a resilient design.
- Strong Support and SLA Guarantees: Provide quick responses, incident collaboration, and clear escalation pathways.
- Roadmap Aligned with MSP Needs: Prioritize features that MSPs request, such as multi-tenancy, delegation, and reporting.
- Marketing and Messaging: Tailor messaging to address MSP concerns such as efficiency, profit margins, and differentiation.
- Risk Sharing Models: Offer performance guarantees, channel protection, and flexible contracts.
