MSPs critical for APAC businesses to grow securely: Barracuda report

85% of APAC organizations with 1,000 to 2,000 employees now depend on MSPs for security support, according to Barracuda Networks’ MSP Customer Insight Report.

According to Barracuda Networks’ MSP Customer Insight Report 2025, managed service providers (MSPs) are still vital growth partners in the APAC region for organizations that want to grow securely. The report revealed that 52% of the APAC organizations surveyed want MSPs to help them manage a spiraling number of disconnected security tools and vendors.

The report, undertaken by Barracuda with Vanson Bourne, which gathered insights from 2,000 IT and security decision makers across the Americas, Europe and Asia-Pacific (Australia, India, and Japan) also revealed that 51% of respondents turn to MSPs to evolve their security strategies as the business expands. 48% also say they rely on MSPs for around-the-clock security coverage. These figures underscore the indispensable role MSPs play in modern cybersecurity landscapes.

Specifically, the findings clearly indicate that MSPs have become critical for organizations of all sizes today. As organizations look to consolidate their cybersecurity solutions, MSPs are providing the capabilities needed to ensure businesses are still able to maximize their security protection despite consolidating some services.

Responders from the APAC region have also indicated that they want to partner (735) or partner with an MSP (96%) in cybersecurity. As such, MSPs are now witnessing their client base expanding significantly.

In APAC, 85% of APAC organizations 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. 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, is also expected to increase in the next two years.

“Many MSPs now operate, often together with security vendors, a managed security operations center (SOC) that provides such expert coverage. To get the most comprehensive security, this can be combined with a managed extended detection and response (XDR) solution that can cover the breadth of the attack surface, including endpoints, email, cloud, applications, and networks. For many of the organizations surveyed, engagement with MSPs is also closely tied to the lack of in-house cybersecurity professionals — cited as a reason by 48%. The skills shortage appears to be a universal challenge as the proportion remains consistent across all company sizes,” the report stated.

As such, customers in APAC are prepared to pay MSPs up to 25% more for the services and support they need. As many as 92% of APAC organizations are willing to pay a premium for advanced support in integrating their security tools.

Naturally, paying a premium price for MSPs would also mean that customers have higher expectations. In APACs will consider switching providers if their current MSP fails to meet key expectations. The general concerns on expectations of MSPs include the MSP’s ability to help them remediate and recover from a cyberattack, and the MSP’s own security resilience. 45% of customers would switch if their MSP cannot demonstrate the skills and expertise required to deliver 24/7 security support.

For Brian Downey, VP of Product Management at Barracuda, the findings highlight the pivotal role MSPs play in helping customers navigate the complexities of modern cybersecurity.

“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,” said Downey.

Meanwhile, Mark Lukie, Director of Solution Architects, APAC, Barracuda stated that more mid-sized organizations are turning to MSPs as they grapple with increasingly complex cybersecurity needs in the region.

“The truth is that most IT teams simply don’t have the time, budget or in-house expertise to manage the increasing complexity we are seeing. That’s why MSPs are becoming such critical partners, especially as demand for advanced services like AI integration and 24/7 monitoring continues to rise. Organizations aren’t just looking for support - they’re looking for MSPs who can lead and evolve with them,” explained Lukie.

The role of vendors

The report also highlighted the crucial role security vendors play in helping MSPs integrate management, response and reporting activities through centralized dashboards and product consolidation. The report also states that vendors can help MSPs meet the clear demand for 24/7 security monitoring with managed SOCs as well as support customers through compliance and regulations and with the implementation of AI and machine learning tools and applications.

“MSPs need to prepare customers wanting more proactive and predictive services, such as threat intelligence, incident response planning, risk management, and strategic consulting. As if that isn’t enough, MSPs also need to look to their own commercial viability and provide evidence of expertise and a robust business model — or risk losing customers to competitors. This requires a product portfolio that is advanced and innovative but also easy for customers to buy, deploy, and use. It also requires security vendors who are committed to partnering,” concluded the report.

For partners like Aura Technology, MSPs need to be more than just service providers. Richard Flanders, Commercial Director to the UK-based IT service provider, said MSPs 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,” added Flanders.

For Roy de Bruijin, Commercial Director at Tredion, the findings of the study 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 organizations seeking the assistance of MSPs to help them with specific and complex IT security challenges,” commented de Bruijin.