MSPs Are Drowning in Cyber Demand. Cynet’s New Report Shows Why It’s Not Just a Tech Problem

As ransomware grows more ruthless and threat actors become more automated than the defenders trying to stop them, managed service providers (MSPs) are caught in the crossfire. A new industry survey from Cynet paints a revealing picture of the modern MSP: overworked, under-automated, and racing to keep up with spiraling demand for cybersecurity services.

The research, compiled in Cynet’s just-released “Managed Security Snapshot: 2025 Growth, Gaps & Game Plans,” surveyed 200 cybersecurity leaders across U.S.-based MSPs. The results are both unsurprising and alarming: cybersecurity services are boosting business, but operational cracks are beginning to show.

“Managed cybersecurity services are in record demand as cyberattacks increase in volume and sophistication,” said Jason Magee, CEO of Cynet. “The MSP Survey findings reinforce why scalable breach protection is mission-critical to maximizing growth in the channel.”

The Growth Paradox

At first glance, things look promising. MSPs are averaging 50 clients and nearly 1,730 endpoints under management. Their cybersecurity offerings are cementing client loyalty—96% of respondents said security services were a key driver of retention.

But this success has come at a cost. The average MSP handles over 100 security incidents per year. That’s a heavy lift for companies where only 8–20% of staff are dedicated to security. Adding to the chaos, most MSPs cobble together four or more security tools from different vendors, creating a Frankenstein's monster of fragmented platforms, overlapping alerts, and inconsistent data.

This tool sprawl doesn’t just drain efficiency—it erodes profitability.

Automation: The Bottleneck

The single biggest barrier to scaling, according to half of all respondents? A lack of automation.

While enterprise security teams are rapidly deploying AI-based defenses, MSPs—often leaner and less resourced—lag behind. Many are still reliant on manual playbooks, unable to triage alerts or remediate threats without hands-on involvement. It’s no surprise then that 94% of surveyed MSPs say they’re actively hunting for a unified cybersecurity platform to consolidate their stack and streamline operations.

“Operational efficiency, total visibility and automated protection” are the next evolution, Magee said, noting that Cynet plans to act on the study’s findings with new partner-focused offerings.

A Shift in Vendor Trust

In a market crowded with flashy dashboards and inflated promises, MSPs are leaning on more credible signals when choosing cybersecurity vendors. The report shows that 42% of MSPs now turn to MITRE ATT&CK Evaluations as their top benchmark for assessing tool effectiveness—a clear shift toward data-driven scrutiny over marketing hype.

The Industry Crossroads

The Cynet report arrives at a pivotal moment. As MSPs become de facto security teams for small and midsize businesses, their ability to scale securely and sustainably is no longer optional—it’s existential.

While the pressure to expand services is mounting, the means to do so—automation, staffing, and platform consolidation—remain frustratingly out of reach for many. Cynet’s findings highlight that the future of MSP-led security hinges not on more clients or fancier tech, but on operational clarity, automation, and trusted partnerships.

Until then, MSPs will continue to battle the very chaos they’re hired to contain.

You can download the full report, “Managed Security Snapshot: 2025 Growth, Gaps & Game Plans,” on Cynet’s website.