Remember when backup and recovery were the leading service offerings of managed service providers (MSPs)? According to recent data, 86% of MSPs offered cloud backup solutions as reliable, foundational services that build client trust, deliver peace of mind, and position MSPs as top of mind when disaster strikes. For years, backup has been the backbone of the MSP business model — and for good reasons.
But if you’ve been paying attention to the shifting landscape, you already know something’s changing. A recent survey revealed that 39% of IT decision-makers reported their organizations needed to recover data from backups at least once a month, and nearly half (49%) cited cyberattacks as the top reason. This frequent need for data recovery underscores the persistent vulnerabilities IT professionals face.
Cyberthreats aren’t rare occurrences anymore — they’ve also become more sophisticated, targeted, and far more damaging than ever before. Gartner predicts 40% of social engineering attacks will target executives and the broader workforce by 2028. MSP clients feel this shift. They’re seeing the headlines, fielding questions from their boards, and increasingly looking to you not only for recovery solutions, but also for comprehensive protection and defense strategies. It’s time to rethink your MSP playbook.
Security-First: The New Standard for Modern MSPs
Human error is responsible for 74% of data breaches. Insider threats have evolved beyond disgruntled employees to include sophisticated social engineering, which turns unwitting staff into security liabilities by using counterfeit reality techniques, such as deepfake audio and video, to deceive employees during calls. Even accidental exposures have become more consequential as data privacy regulations tighten worldwide.
Today’s MSPs aren’t abandoning backup — they’re expanding beyond it, embracing a security-first approach. Disaster Recovery Journal reported that only 42% of organizations get all their data when they perform a restore, which leaves 58% with some unrecovered data. If recovery is MSP’s only defense, you’re already playing catch-up in a game where the stakes keep rising. Security-first means:
- Limiting user access. Excessive user access often stems from oversharing. Implementing user access controls can limit the extent of data affected in the event of a breach.
- Moving from reactive to proactive. Anticipate threats before they materialize rather than respond to incidents after they occur, through automation on access and configurations.
- Creating defense in depth. Build layered protection that safeguards data at every stage of its lifecycle — at rest, in transit, and in use.
- Providing visibility and governance. Help clients understand where their sensitive data resides, who has access to it, and how it might be exposed.
- Becoming a strategic advisor. Lead conversations about business risk and resilience, not just technical specifications and recovery times.
Why This Paradigm Shift Matters Right Now
Leading with security isn’t about simply adding another bullet to your service catalog or bundling in a new security tool. It’s about fundamentally reframing how you approach client relationships, assess risk, and demonstrate value in an increasingly complex environment.
Your clients’ environment is changing rapidly. They’re adopting more cloud services, supporting remote workforces, and integrating AI tools and more third-party applications. Each change expands their attack surface, and the leadership teams are asking tougher questions: How vulnerable are we? What would a breach actually cost us? Are we meeting our compliance obligations? How do we compare to industry standards?
These aren’t questions about backup frequencies or recovery point objectives (RPOs). They’re strategic concerns that require comprehensive security thinking — and they’re increasingly driving budget decisions.
The truth is stark but instructive: MSPs who remain entrenched exclusively in legacy, reactive models risk being gradually sidelined as clients look for partners who can address the full spectrum of their digital protection needs.
Backup Is Still Critical — But It’s No Longer the Headline
Let’s be clear: backup and recovery solutions remain absolutely essential. They provide a safety net that ensures business continuity when prevention measures fail — and no security strategy is 100% bulletproof.
But leading client conversations with backup capabilities in 2025 is like selling car insurance without discussing seatbelts, brakes, or anti-theft systems. The protection that matters most happens before the crash, not after.
Forward-thinking MSPs recognize that backup is now part of a broader, more strategic security and resilience strategy — not the entirety of it. The future of the MSP business belongs to those who prioritize security.
Time to Shift Gears: Be the Advisor, Not the Responder
This evolution in the market represents an enormous opportunity for MSPs willing to embrace it. By adopting and championing a security-first approach, you can:
- Elevate your strategic value. Move from tactical support provider to trusted business advisor.
- Differentiate in a crowded marketplace. Stand out among competitors still leading with commodity services.
- Develop higher-value relationships. Create stickier, more profitable client engagements built on strategic alignment.
- Future-proof your business model. Position yourself at the forefront of industry trends rather than reacting to them.
The most successful MSPs understand that this change doesn’t diminish the importance of their existing expertise — it amplifies it by placing it within a more comprehensive framework of client protection.
The Next Step Forward
As businesses adopt AI and cloud collaboration, MSPs must go beyond backup — they need to secure data before AI accesses it. With tools like risk monitoring and workspace management, MSPs can proactively detect threats, enforce security policies, and govern how AI tools like Microsoft 365 Copilot interact with data — ensuring only compliant, secure access methods are used.
This shift positions MSPs as strategic, AI-ready security partners — helping customers innovate safely while unlocking higher-value service opportunities. You’ve built your business on being there when clients need you most. Now’s the time to show them you can do even more — not only helping them recover, but also prevent, prepare, and truly protect what matters most.
Ready to lead the charge? Download eBook — Securing the Modern Workplace: A Guide for MSPs to Protect Client Data and Unlock New Revenue
