Sydney, Australia – 17 July, 2025 — Barracuda Networks, Inc., a leading cybersecurity company providing complete protection against complex threats for all sized businesses, today published the MSP Customer Insight Report 2025. The report details the findings of an international survey showing how managed service providers (MSPs) have become critical partners for businesses that want to grow securely.

The survey, undertaken by Barracuda with Vanson Bourne, gathered insights from 2,000 IT and security decision makers across the Americas, Europe and Asia-Pacific. The findings highlight a universal need for MSPs’ security expertise and managed solutions – extending well beyond their traditional SMB customer base.

The Research Shows

• MSPs are vital growth partners. 54% of the Australian organisations surveyed want MSPs to help them manage a spiraling number of disconnected security tools and vendors, and 55% turn to MSPs to evolve their security strategies as the business expands. 39% of Australian organisations say they rely on MSPs for around-the-clock security coverage. These figures underscore the indispensable role MSPs play in modern cybersecurity landscapes.
• Most organisations partner or want to partner with an MSP. 77% of Australian respondents say they already work with an MSP – and this figure rises to 99% if you add those evaluating or considering collaboration.
• The MSP client base has expanded significantly. MSPs have traditionally been seen as a resource for smaller businesses, but the survey found that 85% of organisations globally (with 1,000 to 2,000 employees) now depend on MSPs for security support, compared to 61% of smaller companies with 50 to 100 employees.
• Over the next two years, there will be high demand for MSP expertise in AI and machine learning applications, as well as for network security measures such as zero trust and managed security operations.
• Customers are prepared to pay MSPs up to 25% more for the services and support they need. As many as 92% of organisations globally are willing to pay a premium for advanced support in integrating their security tools.
• In return, customer expectations are high. Customers will consider switching providers if their current MSP fails to meet key expectations. Concerns include the MSP’s ability to help them remediate and recover from a cyberattack, and the MSP’s own security resilience. 48% of Australian customers would switch if their MSP cannot demonstrate the skills and expertise required to deliver 24/7 security support.

“Across Australia, organisations are contending with a level of security complexity that simply didn’t exist a few years ago. This includes multiple tools, multiple vendors, and rising pressure to adopt AI and advanced threat strategies. What we’re seeing is a shift in how organisations approach this challenge and they’re looking to their MSPs and channel partners not just for technical expertise, but for strategic guidance and long-term resilience. The channel has always been close to the customer, but the role it plays now is more consultative, more embedded, and more critical than ever. This is especially true for organisations navigating hybrid environments with constrained internal resources. The opportunity for channel partners in this moment isn’t just to sell security solutions, it’s to solve systemic complexity,” said Dan McLean, Country Manager Australia and New Zealand at Barracuda.

“These findings highlight the pivotal role MSPs play in helping customers navigate the complexities of modern cybersecurity,” said Brian Downey, VP of Product Management at Barracuda. “From addressing disconnected security tools to meeting high customer expectations for resilience and advanced support, MSPs face both unprecedented opportunities and significant challenges. At Barracuda, we are committed to empowering MSPs with the integrated security platform, 24/7 expert monitoring and support and product innovations they need to not only meet these demands but also thrive in an evolving landscape.”

What Partners Say

“As the research shows, MSPs are going through a period of transition. Today’s MSPs need to be more than just service providers; they need to be strategic partners, able to address customer demand for deep, multi-layered protection and provide both technical and business support. We’re seeing companies with 1,000 plus users looking for ‘co-managed’ services and skills to provide an effective protective shield 24/7. This can be a great starting point for additional business opportunities. MSPs that can’t adapt to this new reality will struggle to survive.” Richard Flanders, Commercial Director, Aura Technology.

“The findings underscore the importance of AI and advanced security measures for both MSPs and their customers. MSPs need these capabilities to remain relevant and provide unparalleled value to clients. We are seeing ever larger organisations seeking the assistance of MSPs to help them with specific and complex IT security challenges.” Roy de Bruijn, Commercial Director, Tredion.

Methodology

Barracuda commissioned independent market research company Vanson Bourne to

conduct a global survey of 2,000 senior security decision-makers in IT and business roles in organisations with between 50 and 2,000 employees from a broad range of industries in the U.S., UK, France, DACH (Germany, Austria, Switzerland), Benelux (Belgium, the Netherlands, Luxembourg), the Nordics (Denmark, Finland, Norway, Sweden), Australia, India, and Japan. The fieldwork was conducted in April and May 2025.

About Barracuda

Barracuda is a leading global cybersecurity company providing complete protection against complex threats for all sized businesses. Our AI-powered platform secures email, data, applications, and networks with innovative solutions, managed XDR and a centralised dashboard to maximise protection and strengthen cyber resilience. Trusted by hundreds of thousands of IT professionals and managed service providers worldwide, Barracuda delivers powerful defenses that are easy to buy, deploy and use.

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