The State of the MSP Industry: Growth, Compliance, and AI Threats in 2025

A recent report from Kaseya reveals that 91% of MSPs are prioritizing profitability, with a significant portion expecting revenue growth despite challenges in customer acquisition. The competitive landscape sees smaller MSPs leveraging niche expertise, while the rise of AI-driven threats poses new challenges, with over two-thirds of providers reporting increased attacks. Sobel highlights the findings from a Fiverr survey of U.S. small business owners, which indicates a strong sense of optimism for the year ahead, especially in sectors like education, finance, and retail. Despite concerns about rising costs and potential recession, nearly 90% of respondents remain hopeful, with women-led firms exhibiting even greater optimism. As small businesses prepare for 2025, their focus is on hiring talent, marketing investments, and adopting new technologies to enhance efficiency. The episode also touches on the varied revenue growth performance of the Big Four consulting firms, with Deloitte leading at an 8% increase, while others like Ernst & Young reported declines. This landscape presents opportunities for smaller, agile providers to fill gaps in digital transformation and tailored IT solutions, particularly in compliance services, which have seen significant growth. Sobel emphasizes the importance of understanding regional opportunities and risks as providers navigate the evolving market. In regulatory news, a U.S. appeals court ruling has significant implications for net neutrality, allowing states to maintain their own rules while limiting federal authority. Additionally, new laws in California regulating artificial intelligence and deepfakes are set to reshape the landscape. Sobel warns that the power consumption of AI data centers could strain electricity supplies, urging tech providers to prioritize energy efficiency and sustainability as they plan for the future. The episode concludes with a somber note, remembering two influential figures in the IT services community who recently passed away. Three things to know today 00:00 2025 Optimism Abounds: MSPs and Small Businesses Double Down on Growth, Tech, and Staying Ahead of AI Threats05:10 Net Neutrality Is Out, AI Rules Are In07:34 Watch Out for Those Data Centers Burning the Grid    💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Guardz · HaloPSA · LogMeIn · OpenText · Pax8 · Proofpoint · Rythmz · ScalePad · TimeZest · Transit AI · USecureSupporting the IT services community through insights, analysis, and transparency. 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more.👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story?📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories?Every episode script — with full source links — is posted at:🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079YouTube: https://youtube.com/mspradioBluesky: https://bsky.app/profile/businessof.techInstagram: https://www.instagram.com/mspradioTikTok: https://www.tiktok.com/@businessoftechFacebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.