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Small- to medium-sized enterprises (SMEs) have long relied on managed service providers (MSPs) to handle their IT security. But here’s the catch—according to the latest JumpCloud 2025 SME IT Trends Report, 44% of SMEs (up from 39% just six months ago) are now questioning whether their MSPs are actually keeping them safe.
So, what’s behind this growing doubt? From security roadblocks to outdated tech, businesses have plenty of reasons to feel uneasy. Let’s dive into the key cybersecurity struggles MSPs are facing in 2025—and what they can do to step up their game.
2025 MSP Report: Data From SME Clients
Read on to learn how small to medium-sized enterprises (SMEs) feel about their MSPs, why they invest in them, how they want to grow with them, and why they leave.
The Growing Cyber Threats SMEs Face
The tech world is evolving at lightning speed, and SMEs are feeling the heat. 60% of businesses list cybersecurity as a top concern, alongside juggling new apps, managing multiple security tools, and keeping track of their devices.
Top cyber threats according to IT admins this year:
⚡ Software vulnerabilities
⚡ Network attacks
⚡ Unsecured networks
⚡ Ransomware
⚡ Shadow IT (aka employees using unauthorized apps & devices)
One IT pro summed up the struggle in JumpCloud’s recent survey: “What keeps me up at night is the lack of cohesive information and reliable data on what is actually occurring.”
With cyber threats mounting, nearly half of SMEs are now setting aside 10-25% of their budget for cybersecurity—and 75% expect this spending to increase over the next year. But that also means they’re scrutinizing their MSPs more than ever.
Why Are SMEs Losing Trust in MSPs?
MSPs have had a rocky security journey over the past few years. Back in 2023, 46.2% of SMEs didn’t fully trust MSPs with their security. That number jumped to 50% before dropping to 39% in late 2024—only to rise again to 44% in 2025.
Why the hesitation? Here’s what SMEs are saying:
🚨 MSPs aren’t keeping up with the latest security tech
🚨 Security measures disrupt user experience
🚨 Too many unnecessary service offerings
🚨 Incompatibility with existing tech stacks
🚨 Bad past experiences with MSPs
So, what can MSPs do to win back SME trust? Let’s break it down.
How Can Your MSP Step Up Its Cybersecurity Game?
The good news? SMEs are still looking to MSPs for security expertise. 72% of businesses now have an in-house cybersecurity expert, while 17% rely on their MSP for security support. But just having a security team isn’t enough—MSPs need to go the extra mile.
✅ Offer Scalable, Flexible Security Packages
Every SME is different, so one-size-fits-all solutions don’t cut it. MSPs should tailor their services to fit each client’s needs while showing the real return on investment (ROI).
✅ Prioritize User Experience
Security shouldn’t slow down employees. MSPs should provide smooth, efficient security measures and offer training to help staff adjust to new protocols seamlessly. Regular client feedback is key!
✅ Provide Cybersecurity Training for SMEs
Knowledge is power! MSPs can assign security specialists to clients and offer cybersecurity awareness training. It also helps if MSPs keep their own teams sharp with advanced certifications like CISSP, CISA, and Security+.
Final Thoughts
Cyber threats aren’t going anywhere, and SMEs need MSPs they can fully trust.
Want to dive deeper into the latest MSP security trends? Download the JumpCloud 2025 MSP Special Edition Report for free!
