The beginning of 2025 has been wild so far, and there’s no sign of it slowing down. We’re back with more predictions for what 2025 will look like for MSPs, with an eye towards 2026 and beyond.
Whether it’s integrating cutting-edge technologies, adapting to regulatory shake-ups, or capitalizing on emerging markets, MSPs and IT leaders must stay ahead of the curve. That’s why ChannelPro turned to some of the sharpest minds in the channel and asked them to deliver an unfiltered forecast for the rest of 2025.
If you’re looking to enhance your service offerings or master shifting market dynamics, these predictions and insights will help you stay ahead in an unpredictable year.
Tarun Desikan
Desikan is executive vice president, cloud secure edge for SonicWall.
“In the Mission Impossible movie franchise, Tom Cruise and team make use of advanced techniques – latex 3D face masks, voice modulators, adaptive contact lenses and more – to impersonate people, enter restricted areas and save the world from destruction. In 2025, new AI capabilities will make what was only possible in the realm of movies available to the mainstream. And, as with all such new technologies, the bad guys will be amongst the first to take advantage. Unfortunately, the bad guys won’t be using impersonation to save the world; instead, they will launch more sophisticated spoofing and phishing techniques to launch cyberattacks against unsuspecting civilian organizations.”
Jim Elder
Elder is VP of global pathways at Blancco.
“The proliferation of AI will continue to increase demand for greater processing speeds and more scalable data operations in 2025. Hyperscalers will forge ahead with their buildout and focus on facilitating AI applications and supporting AI initiatives at large and medium enterprises. Meanwhile, the cloud migration “gold rush” will continue to cool off and balance out, leading CIOs to shift budget into their own enterprise data center operations. This will further increase spend and demand for partner services that include helping enterprises optimize their cloud environments.”
Tim Erlin
Erlin is VP of product at Wallarm.
“In 2025, Managed IT will be all about reducing the burden for customers. As security incidents continue to gain more visibility with businesses and their boards, I predict that the dividing line between MSPs and MSSPs will blur. MSPs who are looking to expand their ability to help customers are likely to expand into security.
Also, a backup is only as good as the business’ ability to recover. So, the opportunity isn’t around “SaaS backups,” but around SaaS recovery.
MSPs looking to expand their “data loss” offerings in 2025 should focus more on business continuity. The real value to customers is gained by examining the threats that might disrupt their operations, including their SaaS tools, and providing a fast, reliable path to recovery.”
Terry Hedden
Hedden is the CEO of Marketopia.
“I believe the Managed IT Industry will continue the transformation it began in 2024. Security risks are becoming more complex. MSPs will elevate the services they offer far beyond user support to become both providers of very robust security. I also see increased regulation and industry requirements that MSPs will be required to provide. The market opportunity for businesses in general is great in 2025. That means a very bright future for MSPs that are able to demonstrate value and increase income and profit as a result.”
J.J. Kardwell
Kardwellis the CEO of Vultr.
“In 2025, agentic AI will leap from imaginary to necessary, quickly redefining enterprise automation. Self-directed AI applications will allow organizations to make real-time, data-driven decisions, particularly in sectors already making use of sovereign and private clouds. Expect early enterprise-level adopters to crop up in places where CapEx isn’t an issue, deploying high-performance GPU and CPU clusters for mission-critical applications. Simultaneously, lighter agentic AI solutions will flourish through alternative cloud providers, enabling serverless inference at the edge, slashing costs and complexity.
By outsourcing infrastructure management, businesses will be able to focus on optimizing the AI application layer, unlocking unparalleled productivity and customer engagement. To support the massive scale of AI inference required, organizations will increasingly deploy specialized models paired with vector databases and RAG at edge locations. This edge-focused architecture will deliver the ultra-low latency needed for AI agents to effectively support the volume of AI interactions needed for agentic AI at scale.”
Denny LeCompte
LeCompte is the CEO of Portnox Security.
“There will be an even greater financial opportunity for MSPs to offer SaaS data backups in 2025. As organizations increasingly migrate to cloud-native solutions, the need for comprehensive data protection has never been higher. MSPs can capitalize on this demand by providing reliable SaaS backup services, thereby expanding their service portfolio and generating new revenue streams. By addressing a critical need, MSPs can enhance their value proposition and strengthen customer relationships.”
Dror Liwer
Liwer is the co-founder of Coro.
“In 2025, AI can either be a powerful ally or an unseen double agent. On one hand, it will help MSPs and their clients boost productivity; on the other, it introduces significant risks. In the rush to improve efficiency, security often takes a back seat, and sharing sensitive data with AI tools can result in severe consequences.
In addition, expect more AI-driven attacks as hackers further experiment with the technology and become more clever in their social engineering. For example, phishing emails are getting alarmingly good at mimicking people’s tone and even referencing past conversations. The usual security training is not cutting it anymore and MSPs will need to lean on advanced tooling like email address cross checking and behavioral tracking to plug those gaps. For SMBs, having an MSP who can stay ahead of these attacks will be a game-changer.”
Gary Pica
Pica is the president of TruMethods, a Kaseya company.
“Managed service providers (MSPs) are taking a more strategic role with their small to medium-sized business (SMB) customers as they invest more in technology and security. Lowering costs, adding value, and becoming more efficient is the top priority of every MSP. Automation and AI will play a critical role in this phase of the MSPs’ journey.
SMB decision-makers are now more educated about what a comprehensive IT and security offering looks like. For this reason, a more complete, automated solution will be more important than ever, and MSPs will need to be ready to offer it to their customers.”
Manny Rivelo
Manny Rivelo is the CEO of ConnectWise.
“The cybersecurity landscape is evolving rapidly, driven by technological advancements and increasingly sophisticated threats. This is pushing Managed Service Providers (MSPs) and Technology Solution Providers (TSPs) to adapt quickly. To stay secure in today’s digital world, businesses must simplify their infrastructure and operations. Looking ahead to 2025, there will be an intensified focus on cybersecurity and data protection from both MSPs and their SMB clients, with a growing emphasis on integrating innovative solutions into existing technology ecosystems.
Technologies like hyperautomation and AI will be key in transforming how services are delivered and managed. These advancements will enable MSPs to automate routine tasks, enhance operational efficiency, and strengthen their cybersecurity posture. As businesses prepare for the future, their priorities will include product innovation, improving the partner experience, and helping partners succeed in an AI-driven market. By leveraging AI tools and hyperautomation platforms, MSPs and TSPs can simplify operations, improve user experience, and provide stronger support. These innovations will not only drive operational efficiency but also offer more integrated, robust solutions, ensuring that providers are well-equipped to navigate the challenges of a rapidly changing business environment.”
Anton Shipulin
Shipulin is industrial cybersecurity evangelist for Nozomi Networks.
“In the coming months, we are likely to see an increase in AI/ML-enabled cyberattacks targeting critical infrastructure and new attacks on AI/ML-based OT/IoT cyber-physical systems. Smart city projects, particularly entertainment and sports facilities are increasingly recognizing the importance of securing their cyber-physical systems. Often overlooked, systems like building management and other connected devices can both be final targets and serve as potential entry points for cyberattacks.”
Pravin Vazirani
Vazirani is assistant vice president of growth at Chetu.
“Data loss will continue to create havoc for businesses, often bringing its operations to a standstill. A Marriott data breach affected 300-500 million guests and cost the hotel chain more than $23 million in fines, not including the damage it did to Marriott’s reputation.
Managed Service Providers can create a steady revenue stream by offering SaaS backups. MSPs can develop proprietary SaaS backup systems or partner with various SaaS backup applications. Whichever path MSPs take, the backup systems must protect the applications their clients use, host the data in reliable data centers with proven uptime guarantees, and provide comprehensive recovery features.”
Featured Image: iStock
