From Cost-Cutters to Consiglieres: SMEs Beg MSPs for Help Navigating Tech LandscapeFrom Cost-Cutters to Consiglieres: SMEs Beg MSPs for Help Navigating Tech Landscape

Small businesses increasingly view MSPs as trusted advisors to help navigate a rapidly changing tech and business landscape, rather than just a source of cost savings.

That's one of the findings of the new Q1 2025 SME IT Trends Report, "From Chaos to Control: Simplifying IT in the Fast Lane of Change" from JumpCloud. The research draws on insights from IT professionals in the U.S., U.K., and Australia.

The report contends that IT teams are struggling to keep up with rising costs, fragmented systems and new security threats. As such, more SMEs view MSPs as "consiglieres" rather than cost-cutters.

More than nine in 10 (93%) organizations surveyed use or are considering using an MSP. Elsewhere, 35% use an MSP to completely manage their IT program, up from 29% who said the same six months ago.

IT teams are struggling with AI, shadow IT and security threats, among other challenges, said the report.

“IT teams are operating in a high-stakes environment where complexity and speed are often at odds with security and control,” said Rajat Bhargava, co-founder and CEO, JumpCloud. “Eighty-five percent of admins are calling for a unified platform to manage devices, identities and access. Our findings show a need for proactive IT management. We must simplify operations while meeting the growing demands on IT teams.”

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JumpCloud's Rajat Bhargava

MSPs Delivering Broad Benefits to SMEs

MSPs are embracing the shift from being viewed as a value provider to those that deliver broader benefits, noted the report.

The U.S. relies on MSPs significantly more, with 43% using an MSP to completely manage their IT program, vs. 31% of U.K. and 31% of Australian organizations.

Increased IT effectiveness is the top reason IT admins use MSPs (54%), followed by MSPs making their jobs easier (43%). Forty-one percent believe they are cost-effective (down from 58% in the third quarter of 2024), and offer strong customer support (41%, up from 29% in Q3 2024). Forty percent think MSPs are up to date on the latest technologies (down from 56% in Q3 2024), and provide a better user experience (38%, down from 50% in Q3 2024).

There are opportunities for MSPs who can successfully demonstrate their value as a partner. More than three in four (76%) SMEs plan to increase MSP investment over the next 12 months, up from 67% who said the same six months ago.

Most commonly, SMEs find their MSP partners through recommendations (45%), followed by an online search (37%) and the MSP reaching out (17%).

But how MSPs manage security is a rising concern for those using or considering an MSP, with 44% reporting concerns, up from 39% six months ago.

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For those who don’t use an MSP, admins cite wanting to handle IT themselves as the biggest reason (38%, down from 47% in Q3 2024). Cost is the second reason (35%, down from 39% in the previous quarter).