The earth is constantly shifting beneath an MSP\u2019s feet. Changing customer expectations, evolving security threats, technology innovation, talent scarcity, increased regulatory and compliance requirements; the list of things to keep on top of grows daily. It\u2019s hard to keep up! But if you don\u2019t, it won\u2019t be long before your profitability and relevance are at risk.<\/p>\n
Those who can adapt strategically, move nimbly and embrace MSP trends and challenges with an open mind will always have an edge on the competition, and Sherweb is committed to making that our partners\u2019 reality. Let\u2019s examine what some of these opportunities look like in today\u2019s landscape.<\/p>\n
Even though staying ahead of industry trends and challenges is a constant battle, the good news is that demand for managed services is on the up and up. Currently, the global MSP market is valued at over USD $400 billion<\/a>, and is projected to surpass USD $970 billion by 2035.<\/p>\n Market segments and factors driving this growth are no doubt familiar to most MSPs. Increased emphasis on cybersecurity; more businesses outsourcing IT needs; an ongoing transition of workloads from on-prem to the cloud; the rise of AI. Specific trends and challenges under the respective umbrellas of these growth drivers, however, do tend to fluctuate. Furthermore, harnessing individual market moments for your MSP\u2019s benefit is often easier said than done.<\/p>\n Skynet is live! The future is now! Our days are numbered!<\/p>\n Fortunately, not quite. But artificial intelligence is definitely changing the game, as about nine out of ten organizations<\/a> are now regularly using AI, and 60% of companies use generative AI to be more productive. On top of that, 72% of companies are actively dabbling with AI agents<\/a>.<\/p>\n This impacts MSPs both internally and externally. Internally, there\u2019s always pressure to work smarter, not harder, and to do more with less. Externally, MSPs have a role to play in both education and adoption, helping end-clients implement AI capabilities and maximize their return, acting as a trusted advisor throughout the process.<\/p>\n While undeniably useful in a variety of areas from customer service to infrastructure management, integrating AI internally can be a complex undertaking for MSPs. It\u2019s a bit of a catch 22: deploying AI can save an MSP significant time and money, and yet it requires both to put into action. Regardless, many MSPs are seeing success<\/a>, especially in using AI-powered automation to streamline repetitive tasks such as ticket triage, escalation and patching.<\/p>\n Then there\u2019s a separate challenge of capitalizing on AI as a revenue stream<\/a>. Many MSP customers are probably already using generative AI for any number of activities, which could turn into a real mess if no one is paying proper attention to relevant implications for collaboration, communication or cybersecurity. This doubles as an opportunity, however, for MSPs to position themselves as their clients\u2019 AI expert, just the same as they do for other areas of IT. Providing AI training and other educational resources in addition to say, Copilot licenses<\/a>, could therefore become both a revenue driver and value-added service for MSPs to include in their offering.<\/p>\n At Sherweb, we\u2019ve been helping our MSP partners make sense of the AI boom since Copilot was first released. We act as your strategic guide, clarifying the latest updates and SKU changes, making sense of the Microsoft roadmap and delivering educational resources. We\u2019ve built a whole MSP Masterclass<\/a> around AI readiness! Whether you\u2019re looking to implement AI internally or externally for clients, we have the expertise to ensure your success.<\/p>\n Although once considered a more niche offering, cybersecurity is now an expected service. Considering 85% of large businesses (1000-2000 employees) and 61% of smaller businesses (50-100 employees) rely on MSPs for security support<\/a>, it\u2019s safe to assume this particular trend is here to stay. The fact that a whopping 97% of MSPs<\/a> with annual earnings in excess of $10 million offer managed cybersecurity supports this.<\/p>\n If your customers aren\u2019t purchasing cybersecurity tools and services<\/a>\u2014threat monitoring, detection, response, compliance, you name it\u2014from you, they\u2019ll get it from someone else. That someone will then have an opening to steal the rest of that client\u2019s business away from your MSP.<\/p>\n Cybersecurity has become a critical service offering for good reason: threats and attacks are upping the ante all the time. They\u2019re also increasingly diverse, as AI-powered cyberattacks become more commonplace. To give just two short examples<\/a>, reports of AI-enabled cyberattacks increased 47% in 2025, and phishing attacks increased by 1,265% with the help of generative AI tools. In response to this, end-customers expect proactive protection, not reactive responses that might come too late.<\/p>\n Greater security threats also have an impact on compliance and regulatory frameworks<\/a> that MSPs are required to adhere to. Compliance monitoring on its own is now a valuable service MSPs can add to their portfolio. But navigating various compliance measures and staying ahead of cyberthreats both existing and emerging is no small task.<\/p>\n Sherweb has been shouting the importance of cybersecurity from the hilltops for years. We\u2019re continually adding in-demand security vendors and tools to our cloud marketplace<\/a> so that partners can support a wide array of client needs. We also champion spaces<\/a> for education and collaboration so that our MSP partners can learn from one another and expand their capabilities.<\/p>\n Mature MSPs might think we sound like a broken with this trend, but facilitating customers\u2019 digital transformation and supporting their cloud journey is still worthy of the spotlight. Demand for managed cloud services is projected to grow 38%<\/a> over the next decade, and they currently account for 18% of the total MSP market<\/a>. Additionally, 64% of MSP customers employ them to manage hybrid cloud resources, and global IaaS spending is projected to increase by more than 35%<\/a> from 2025 to 2026 alone.<\/p>\n Of course, cloud services can take many forms. Examples include:<\/p>\n Offering any combination of these types of services can be a significant revenue driver for MSPs. However, increasing complexity associated with hybrid and multi-cloud environments in addition to tool sprawl and changing customer expectations can complicate service delivery.<\/p>\n As cloud adoption accelerates\u2014fuelled by the trends we\u2019ve already discussed here like AI proliferation and increasingly sophisticated security threats\u2014MSPs must evolve from basic infrastructure management to advanced security, governance and continuous optimization. However, tool sprawl, skills shortages, and the speed of cloud innovation make scaling these services easier said than done.<\/p>\n Sherweb strives to cut through cloud complexity so that MSP partners can streamline day-to-day management and realize efficiencies where possible. Our platform<\/a> consolidates billing, provisioning and support and simplifies MSP workflows with a number of leading integrations<\/a> they already work with to make service delivery as seamless as possible. Our growing cloud marketplace<\/a> helps reduce tool sprawl, so MSPs can provision a range of solutions based on client needs.<\/p>\n Sherweb partners also have access to technical experts, partner enablement resources and professional services like white\u2011label helpdesk support and infrastructure management to scale their cloud practice without overextending internal teams. In a landscape that seems to get more convoluted year over year, Sherweb acts as a stabilizing force, helping MSPs deliver consistent, secure and profitable cloud services with far less friction.<\/p>\n Taking all of this on board, if there\u2019s one thing for certain, it\u2019s that there are immeasurable opportunities for MSPs to rack up wins and drive profitability while simultaneously delivering excellent service for customers. The future belongs to MSPs who embrace automation, deepen their security expertise, and leverage strategic partnerships. Speaking of partnerships, having a value-added cloud partner in your corner rooting for your success can help you push the envelope even further.<\/p>\n Sherweb is here to help you meet current trends head on, simplify complexity, and grow your business the way you want. Book a discovery call<\/a> to learn more about how we go beyond distribution to help your MSP achieve more.<\/p>\nTrend #1: AI is everywhere<\/h2>\n
Challenge: Leveraging AI for both internal operational effectiveness and external revenue growth<\/h3>\n
How Sherweb can help<\/h3>\n
Trend #2: Security is table stakes<\/h2>\n
Challenge: Security threats are consistently bigger, badder and more damaging<\/h3>\n
How Sherweb can help<\/h3>\n
Trend #3: Cloud adoption is no longer optional<\/h2>\n
\n
Challenge: Cloud complexity is on the rise<\/h3>\n
How Sherweb can help<\/h3>\n
Ready to turn MSP trends and challenges into growth opportunities?<\/h2>\n