Acronis presdient Gaidar Magdanurov offers five overlooked MSP challenges and three top tips for success this year.

Many MSP leaders may wonder what they should focus on in 2025. Given the growing complexity of IT environments, persistent talent shortages and evolving cyberthreats, service providers today are expected to face both familiar and new challenges. So, what should they anticipate this year? 

We frequently receive this question from partners who are interested in developing a sustainable business strategy and seeking best practices for preparing for upcoming challenges. 

In this article, let’s look at the major challenges MSPs experienced in 2024 that we expect to continue well into 2025.

5 challenges MSPs often overlook

Over the years, I have spoken with hundreds of MSP leaders who found themselves in a tricky situation: clients leaving, staff feeling overwhelmed, issues piling up and margins shrinking. Luckily, a pattern here can be broken with proactive intervention. 

1. Technician burnout

The 40-hour workweek is becoming unheard of in the IT industry. Longer workdays are commonplace because MSPs are typically understaffed and face mounting pressure to close tickets. When technicians are overloaded, they begin to burn out, which can cause service-level agreements (SLAs) to slide, service quality to decline and client retention to peter out.   

2. Poorly defined processes

Technicians especially get overwhelmed when processes are unclear. Frustrated, they do one of three things: endlessly search for the proper procedures, follow outdated ones, or ignore best practices altogether. Technicians waste time and make mistakes when this information is not readily available or is difficult to understand. 

3. Too many tools

Many MSPs are guilty of having too many tools. It is a familiar story: For instance, the typical MSP is drowning in tools for Microsoft 365 alone, from cybersecurity and email protection to backup and archiving. When technicians are juggling more than they can handle, it is difficult and more costly to manage their services.

4. Failure to communicate successes to clients

The MSP landscape is one of the most competitive spaces, and it is increasingly more complex to differentiate services against the competition. A common mistake many MSPs make is neglecting to report performance metrics to clients. Overlooking the ability to show clients the impact of services, MSPs miss out on one of the most valuable discussions they can have with their clients. Like any business, clients will want to see a healthy return on investment and strengthen their relationship with their provider.

5. Compliance and insurance denials

More and more businesses are experiencing insurance denials and compliance failures because the requirements are becoming stricter. The sad reality is that MSP clients often miss the mark because they require security tools and procedures, and so they rely on MSPs to help them meet these requirements. Yet, if MSPs build service offerings that do not cover all their clients’ bases, providers risk losing these clients to competition that may be better equipped to meet their insurance and compliance needs.

How MSPs can prepare for 2025 

MSP owners, however, do not need to feel stuck. Naturally, it is easy to get into the habit of worrying about the past. But to move forward, MSPs need to be willing to embrace new changes. 

Here are three things they should consider in preparation for this coming year:

1. Automation is your friend

Automation is essential for MSPs and technicians who spend too much time on mundane tasks. From customer communication and security management to ticketing and reporting, we encourage MSPs to assess the processes in their operations that can be improved with automation. Automating where it makes sense can significantly reduce the strain on technicians and save them lots of time. Automating some of these processes can reduce the number of tickets that technicians create and help alleviate their burden.

2. Tech stack consolidation is essential

MSPs should also consider that tool consolidation has several benefits and is not limited to simplifying management. Many MSPs choose one integrated platform and a single console to deliver their services. Why? This enables them to train technicians faster, minimize the risk of human error and reduce costs. Conversely, MSPs that use tools that are not integrated use more time and resources to maintain these products and train staff. By consolidating tools, MSPs can improve their overall efficiency and service quality.

3. Client relationships are not always made to last

When talking to MSPs, many fall into the trap of purely focusing on retention. They make the mistake of trying to win over clients who are about to leave, wasting a lot of time and effort. While retention is essential, it is not a reliable long-term strategy. Sometimes, clients go for a lower price, face new regulatory requirements or change priorities, and you can do nothing to win them back. MSPs need to know when it is time to let clients go so they can focus on the future and create opportunities that will scale. 

Conclusion

Unfortunately, we cannot predict the future, yet we can prepare for it. By constantly evaluating and expanding services, staying on top of trends, and delivering consistent services to existing clients, MSPs can position themselves for success — even when confronted with unexpected changes. Remember that setbacks are just temporary and can serve as valuable learning experiences. So, MSPs should keep their eyes forward and continue to grow their business, one opportunity at a time.