Australian organisations increasingly expect managed service providers (MSPs) to deliver more than traditional technical support, with strategic cyber security guidance and the ability to communicate business risks emerging as key differentiators.
New research from Barracuda, based on a survey of 2,000 IT and security leaders globally, including 200 in Australia, found that 68 per cent of Australian organisations already work with an MSP, while another 28 per cent are considering or evaluating providers.
The findings point to significant growth opportunities for MSPs over the next 12 to 18 months, as organisations look for help addressing security capability gaps, improving incident response, and managing AI-related risks.
According to the research, demand for external support is not necessarily being driven by an increase in cyber attacks, but by concerns about organisations’ ability to detect and respond to incidents effectively.
Globally, just 29 per cent of prospective MSP customers said they could secure compromised accounts and restore operations within hours of an incident.
AI-related threats are also becoming a significant concern, with 59 per cent of MSP customers worried about risks such as AI-generated phishing, AI-powered social engineering, shadow AI, and AI-enabled insider threats.
The report also identified broader cyber resilience shortcomings, with nearly half of prospective MSP customers globally reporting that key capabilities such as security leadership, security culture, asset visibility, and third-party risk management were either at an early stage or only partially established.
However, technical capabilities alone are no longer enough to secure customer relationships.
In Australia, 39 per cent of existing MSP customers identified clear, plain-language explanations of risks, incidents, and recommended next steps as an important factor when selecting a provider.
“Australian organisations want more from an MSP than someone to watch the alerts,” Andy Cocking (pictured), director of MSP, Asia-Pacific region, at Barracuda Networks, said in a statement.
“Attackers are using AI to sharpen their methods, and businesses are adopting AI faster than many of them can secure it. What customers are asking for now is a trusted partner who can help them understand their risk, build resilience, bounce back quickly from an incident and make confident decisions.
“With 68 per cent of Australian organisations already working with an MSP and another 28 per cent looking for one, the opportunity is real. The MSPs that win it will pair technical excellence with the ability to protect their customers’ businesses, advise their leadership teams in plain language, and guide them through an increasingly AI-driven landscape.”
Barracuda commissioned independent research agency Arlington Research to survey 2,000 mid- to senior-level IT and security decision-makers at organisations with between 100 and 2,000 employees across Australia, the US, the UK, France, Germany, Austria, Switzerland, Benelux, the Nordics, India, and Japan.
You can read the full research here.
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