2025 Forecast: Experts Offer Their Predictions for the Future of the Channel

“I’ll be concerned for MSPs that are struggling with maintaining close client relationships. Clients have changed and so have we. If all our work can be done remotely, that hurts client relations.

“Clients are tech savvy and know how to use the internet to resolve problems. [They] know that anyone can fix their printer, which makes MSPs interchangeable — unless you’ve got something else for them that isn’t cybersecurity. They are tired of hearing about cybersecurity. That ‘something else’ needs to be technology leadership while showing care and understanding for their business.

“In 2025, MSPs that haven’t invested in maintaining relationships will see increased churn rates. People do business with people, not KPIs.”

“The rise of cloud computing in 2025 will present opportunities for MSPs to offer more scalable, flexible solutions. MSPs that can help clients optimize their IT environments by providing hybrid cloud services will have an advantage.

“It’s important to encourage staff to gain certifications in cloud technologies, cybersecurity, and compliance standards to enhance the team’s expertise and marketability.

“It will also be critical to educate clients on the importance of security, compliance, and new technologies. That will build trust and position MSPs as valuable partners in their digital transformation journey.”

“The name of the game for all MSPs in 2025 is going to be one word: Security.  We have seen an increase in malicious attacks, from Microsoft 365 email to VPN technologies and beyond.  Malicious actors want every bite of information that’s out there, big or small.

“We need to do a better job of helping customers understand the need as it relates to their security risk and the associated costs.  MSPs need to prioritize their own protection, since they are a target for criminals as well.

“Picking the right vendors is also key to future success. We look for partners that put the customer service first; offer robust technical support; that are innovating product design and architecture; and that focus on ease of use, reliability, and security.”

“Looking ahead to 2025 and beyond, our industry faces a unique opportunity as compliance demands from local and federal agencies ramp up. With new regulations like the FTC Safeguards, we’re entering a time where understanding and integrating these requirements isn’t just necessary — it’s a major business advantage.

“We need to push our tech capabilities to offer secure, top-notch IT solutions that meet stringent compliance standards. This is where embracing new technologies — think AI and machine learning — can make a huge difference. They help automate compliance tasks and manage data more effectively, setting us apart in the market.

“By making these tech-savvy moves now, we position ourselves as leaders in a world where secure and smart IT solutions are in high demand. It’s not just about compliance; it’s about making compliance a seamless part of our services, which is exactly what our clients are looking for.”

“In 2025, MSPs should be both excited and a bit cautious about the leaps in AI and automation. These tech advances can make operations smoother, cut costs, and deliver better services to clients. But the rapid growth in AI can be a double-edged sword if you don’t keep up. It’s crucial to stay updated on the latest trends, invest in training your team, and weave AI tools into your services to stay ahead of the game.

“On top of that, the need for virtual CIO (vCIO) services is going to skyrocket as more businesses look for strategic IT advice without hiring a full-time CIO. MSPs should gear up for this by crafting solid vCIO service packages that cover IT strategy, planning, and management.”

“In the coming year, MSPs will need to extend their resources to include legal as well as operational consulting. With AI promising to fuel many copyright infringement lawsuits, and citizen development fostering the need for better connection between IT and IS departments, MSPs will find themselves caught in the middle of multiple conflicts.

“Inaction is not an option, as involvement in the conflicts themselves might result [in trouble]. Better to start recruiting and vetting potential legal and operational process partners now.”

“In 2025, more MSPs will embrace that having more diverse teams is game changing for boosting profits and business success. By bringing in talent from different backgrounds — whether it’s different genders, ethnicities, or cultures — MSPs will tap into a wealth of perspectives that spark creativity and innovation.

“Diverse teams will be better at understanding and meeting the complex needs of their customers, which means happier clients and better retention rates. By actively implementing strategies to attract and keep this diverse talent, MSPs will not only improve team dynamics and client relations but also open new market opportunities and increase revenue, making them leaders in a competitive industry.”

“The managed services industry is poised for significant growth as businesses recognize the cost savings and specialized expertise that managed services providers offer. MSPs who are not willing to adapt, learn, or engage with the community may find themselves left behind or isolated in an already thriving market.”

“2025 will be a banner year. That is, if an MSP can differentiate itself from the competition.

“One way to differentiate is to demonstrate adherence to professional standards. Having a code of ethics and conduct — like the one provided by the NSITSP — will show clients and prospects that the MSP is dedicated to the highest possible customer satisfaction.

“Greater professionalism and dedication to customer service will translate to higher per-user fees for MSPs who follow this path.”

“Expect a surge in mergers and acquisitions as midsized MSPs consolidate to enhance capabilities, creating a more competitive environment that challenges smaller players to stay independent.

“Another challenge for MSPs is the growing complexity of compliance requirements. It takes a constant investment in training and tools to advise clients on these requirements, which can strain limited resources. However, it also presents an opportunity for MSPs to differentiate themselves, offering compliance advice and specialized services that meet each client’s technological, security, and reporting needs.

“Ultimately, the key to thriving for MSPs will be adaptability. Gear up, stay informed, and embrace the changes; 2025 is shaping up to be a year of exciting possibilities!”

“To remain competitive, businesses will need to embrace AI if they have not already done so. Many people are afraid that AI will take our jobs. While that may be true, it will not replace all jobs — at least not for the immediate future. If AI is trained properly, it can enhance job functions to free individuals up for more meaningful tasks.

“We have seen the news; it seems like every day some company is being hit with ransomware or being attacked and its defense wasn’t significant enough. The DoD has embraced stricter requirements (CMMC). NIST has been prioritizing getting its frameworks updated and releasing new documents.

“What should all this mean? It means that all industries should enforce a security standard being adhered to and validated by a third party. I predict we will see new or existing government bodies enforcing these standards for each industry, starting with MSPs.”

“In 2025, the most successful MSPs will lean heavily into communicating their unique selling point (USP). So many IT companies have the same message: They have an amazing team, they care deeply about customer success, they deliver success for clients today while setting them up for tomorrow.

“That’s not going to cut it in 2025. Your competitors will be using new tools and technology to create and scale marketing content fast.

“Focus on the unique story, perspectives, and value you bring to the table. First, develop the story about what makes your company unique. Then, invest in templates, technology, and tools to scale the telling of that story. You’ll find a sweet spot to deliver the right type of content to your audience.”

“Growing an MSP team’s consultative selling skills is crucial.  Strategies we’re seeing our MSP clients implement to ensure salespeople adopt a more consultative and collaborative selling approach include:

• Pre-call Strategy Checklists: Have the sales team research the company, consider its pain points, and plan good questions to ask.
• Role-playing Discovery Conversations: Ask good questions and dig in to learn more versus jumping to present a solution too quickly.
• Debriefings: The salesperson should report back on what the [prospective client] is looking for in a partner, its budget parameters, the decision-making process, and the next steps that were set.  Providing this accountability and coaching is a game changer.

“Now is the time for an MSP to work on upgrading the skills of their team to prepare them for all of the increased opportunities to grow project and contract sales in 2025.”

“MSPs that haven’t developed great processes are trying to automate and accelerate with AI. That will lead to a backlash in 2025, if not sooner. There’s nothing like bad process at scale to damage client relationships during critical relationship-building moments like on-boarding and account management.

“You don’t have to be first; you just need to be better.  Let your competitors make expensive mistakes. Then, come in and clean up their messes.

“MSPs need to take a critical look at their client distribution and ensure that they’re not overexposed. Start filling top of funnel now, diversify, and have a plan to replace those lodestone clients that make up large amounts of your revenue, so you’re not left scrambling if they decide to leave.

“Your clients are aging out and will sell eventually. Start having exit-planning conversations with your aging clientele sooner rather than later. This is a great opportunity to offer new services like business transition assistance.  Nobody wants to buy a breach waiting to happen, so emphasize security as part of those conversations.”

“In October 2020, the World Economic Forum estimated that by 2025, 85 million jobs may be displaced by advances in robotics and artificial intelligence. They predicted that 50% of the workforce would need to be reskilled to handle this shift.

“If you are an MSP and you are not providing training for your team — especially softer skills — you will find yourself lagging.  Analytical thinking, active learning, and complex problem solving should top your list.

“How ready are you to adopt AI automation for routine tasks? How ready is your team to shed those tasks and take on the more complex challenges to serve your customers?”

“Compliance is coming to the MSP industry. Right now, MSPs who serve DIB (defense industrial base) companies who are data custodians for CUI (controlled unclassified information) will be the first federally mandated MSPs to achieve compliance certification. This is only going to grow.

“CISA will be mandating reporting by MSPs. There may be mandates for MSPs who serve other federal contractors who hold CUI. But for certain, the federal government will be issuing blanket compliance requirements for MSPs to decrease the risk they pose to their customers’ operations, data security, and finances.

“MSPs and their toolsets will continue to leverage AI technologies. Without a focus on the quality and security of these AI technologies, we could be opening a new bag of risk and big mistakes. The technology is powerful and should absolutely be used, but not without a focus on data security and how it broadens the threat landscape.”

“Given the economic pressures and the major technological shift that we’re seeing now, the margin of error will shrink for MSPs in the coming years. The difference between wildly successful and on-the-brink IT businesses will be their ability to harness the educational resources and expert advice that is available.

“Whenever we host a webinar, virtual event, or regional conference, we engage with our audience, vendor partners, and network of business experts. Then, we aggregate and share the best solutions we come across. As a result, I am deeply proud of the content that we produce.

“If you’re worried about what the future holds, please dig deeper into what ChannelPro offers. If you can’t find an answer, engage with our team. If you’re struggling with something, chances are good other MSPs are, too. Together, we can move the entire industry forward.”

“I foresee the MSP landscape in 2025 being shaped by AI, machine learning, and the surge in cybersecurity needs. MSPs must adapt to these changes, enhancing their expertise in cybersecurity, cloud services, and IoT. To stay ahead, they should invest in talent development, strategic partnerships, and client engagement.

“By embracing these strategies, MSPs can secure their future success in a competitive and evolving IT service environment.”

“I predict MSPs will experience two paradigm shifts in 2025 and beyond. First, the adoption of AI productivity tools, such as Copilot for Microsoft 365, by business users will result in MSPs developing new relationships within their customer base. [This will create] new decision makers who can influence technology purchasing decisions and challenge the traditional IT approach.

“Second, MSPs will adopt a DevOps business model with the cloud marketplaces, like Azure, to grow and expand into new customer segments by publishing pre-built solutions that can be automatically deployed. That allows a standardized approach to IT infrastructure and operations — and a natural follow up with managed and professional services.”

“MSPs have opportunities and challenges ahead. We see increasing pressure on the MSP model as more vendors adopt subscription-based and as-a-service models, in which they seek partners to resell rather than deliver their services. This will either cut into or limit MSP opportunities.

“However, customers are under pressure in their IT operations due to rising costs, the pace of technology change, and lack of available talent in the market. MSPs are excellent aggregation points of technology availability and expert support that scales.

“The emerging opportunity for MSPs is in expert knowledge. Customers are increasingly turning to MSPs to guide, develop, and implement innovative systems that will optimize their operations and maximize their potential returns. MSPs will see increasing opportunities in professional services and ecosystem engagements. This is particularly true for work involving artificial intelligence and ISV partners.”