Managed service providers are facing growing expectations to deliver more than cybersecurity tools and technical support, according to new Barracuda research that identifies cyber resilience, AI security expertise and business-level communication as increasingly important factors in customer relationships.
The international survey of 2,000 IT and security decision-makers found that 66% of organizations already outsource security services to an MSP, while another 29% are considering or evaluating providers.
For MSPs, the findings suggest an opportunity to expand beyond traditional security management into strategic advisory services that reduce business risk and improve recovery capabilities.
Cyber resilience emerges as a priority for MSP customers
Barracuda’s research suggests that prospective MSP customers are not necessarily experiencing more attacks than organizations already using providers. Instead, they report lower confidence in their ability to identify threats, investigate incidents, and recover quickly.
Only 29% of prospective MSP customers said they could secure compromised accounts and restore operations within hours of an incident. Another 9% reported taking longer than a week or being unable to consistently restore operations.
Michelle Hodges, SVP of Global Channels and Alliances at Barracuda, told Channel Insider that this confidence gap represents an important opportunity for service providers.
“The opportunity for MSPs is not just protection, it’s confidence and resilience,” Hodges said.
That distinction could influence how MSPs package services, particularly around incident response, identity protection, business continuity and recovery planning.
Rather than selling individual security capabilities, providers can demonstrate measurable improvements in customers’ operational resilience.
AI security concerns create new opportunities for MSPs
AI is another significant factor influencing prospective MSP customers.
Barracuda found that 59% of organizations considering MSP services are concerned about AI-related threats. AI-generated phishing and social engineering were cited by 40% of prospective customers, while 36% identified securing and governing AI tools as a skills gap.
However, Hodges cautioned against treating AI as a standalone sales opportunity while overlooking established security challenges.
She recommended that MSPs focus on educating customers and asking questions about how AI changes their security posture, rather than simply adding AI-branded products.
That approach aligns with broader opportunities for MSPs to develop integrated security offerings encompassing identity protection, email security, AI governance and incident response.
Clear communication influences MSP selection
For MSPs, the findings point to growing opportunities to expand strategic advisory services alongside traditional cybersecurity offerings.
Demonstrating measurable improvements in incident response and recovery readiness, while communicating risks in terms business leaders understand, could become an increasingly important competitive differentiator.
As customer expectations evolve, providers that can connect security investments to operational resilience and business outcomes may be better positioned to build long-term relationships.
For MSPs, that could mean incorporating executive-level reporting, risk assessments and recovery planning into ongoing customer engagements.