The unsung heroes: How MSPs can safeguard SMBs while boosting profitability
- Written by Daniel Garcia, Vice President and General Manager for APAC at Kaseya
In Australia, small-to-medium-sized businesses (SMBs) form the backbone of the economy, accounting for 95% of all businesses. Yet, they remain prime targets for cybercriminals. As cyber threats escalate, managed service providers (MSPs) are on the frontline, tasked with both an opportunity and a challenge to protect these businesses. However, MSPs are grappling with a challenging paradox: balancing their own financial sustainability with the demand for cutting-edge security solutions for their clients.
These compromises risk not only their profitability but also the safety of their clients, creating a ripple effect across the economy. This makes a strong case for MSPs to rethink their strategies, prioritising innovation and efficiency to ensure their own prosperity while delivering top-tier protection for their clients.
Unfortunately, the unit economics of the MSP industry have not yet caught up with the complex challenges and the value that MSPs provide. Despite being the unsung heroes who keep SMBs (and, by extension, the broader Australian economy) running smoothly, MSPs worldwide average profit margins of only 8% to 12%, while legal and financial services firms consistently achieve 30% to 35% profit margins.
Why toolset integration matters
To thrive in today’s competitive landscape, MSPs need to shift focus toward tightly integrated toolsets. A cohesive suite of tools streamlines operations, reduces overheads, and enhances security outcomes. By consolidating their tech stack, MSPs can eliminate inefficiencies and create a win-win scenario—boosting profitability while offering robust protection for SMBs.
Automation: The game-changer for MSPs
Looking ahead, automation promises to be a transformative force for the MSP industry. Automating repetitive tasks not only saves time but also mitigates the effects of the ongoing skills shortage in the tech sector. Intelligent automation enables MSPs to focus on delivering strategic value to their clients, rather than being overwhelmed with repetitive, administrative tasks.
The importance of community
Another underutilised resource for MSPs is the power of community. Platforms like Kaseya’s mentoring group, TruPeer fosters collaboration, allowing MSPs to share insights, best practices, and strategies for navigating industry challenges. By learning from their peers, MSPs can stay ahead of emerging threats and trends, creating a more resilient ecosystem.
Empowering the future of MSPs
At Kaseya, we understand that MSPs can’t do it alone, and it is our mission to change the unit economics for MSPs. Kaseya 365 User is an innovative new subscription designed to prevent, respond and recover from threats that target users in a single, affordable package.
By leveraging integrated tools and automation, we empower MSPs to deliver critical services without compromising their bottom line.
The stakes have never been higher. With cyber threats evolving and the SMB sector under constant attack, MSPs are more vital than ever. By embracing integrated tools, and leaning into innovation and automation, MSPs can secure not only their clients but also their own financial future in an increasingly complex digital landscape.
