Security is the deciding factor for SMEs thinking about using an MSP, survey finds

“MSPs can definitely help businesses picking the right tools,” Antoine Jebara, GM of MSP business at JumpCloud, tells CRN

53 per cent of UK SMEs consider security the main reason to use MSPs, according to JumpCloud’s Q1 2025 SME IT Trends report.

The latest edition of the biannual survey gathered data from more than 900 respondents across the UK, Australia and the US, with 300 participants from the UK.

The survey also found that 31 per cent of UK SMEs are collaborating with MSPs in Q1 FY25 - relying on them to completely manage their IT programmes, including technology, process, and support, up from 24 per cent in Q3 FY24.

To understand more about how SMEs can increasingly work with MSPs and the broader cybersecurity issue, CRN spoke with Antoine Jebara, GM of MSP business at JumpCloud, about the latest survey.

The growing role of MSPs

According to the report, planned MSP investment in the next 12 months has gone up since the previous SME IT Trends report, from 67 per cent in Q3 FY24 to 79 per cent this new quarter.

The reasons for businesses to turn to an MSP are shifting. System security remains the primary reason, with a slight uptick from 52 per cent in Q3 FY24 to 53 per cent in Q1 this year.

Meanwhile, fewer UK SMEs are reported to use MSPs in order to support internal IT teams (44 per cent in Q1 FY25, compared to 51 per cent in Q3 FY24).

For those UK SMEs not using MSPs, nearly half (43 per cent) say that they do not do so because they prefer to handle IT themselves.

Security is also a key factor in deciding not to use a managed service provider - 42 per cent of UK SMEs have concerns about how MSPs manage security; a slight increase from the third quarter of 2024 (37 per cent).

The tool sprawl issue

The accumulation of tools for SMEs is another issue that can be solved by collaborating with MSPs.

“As a company grows it starts experiencing tools sprawl,” explains Jebara.

According to JumpCloud’s report, 83 per cent of respondents are calling for a unified platform to better manage devices, identities and access to simplify their increasingly fragmented environment.

“19 per cent of UK respondents are using 11 to 15 tools to manage employee life cycle.

“More and more companies are looking to reduce the number of these tools and unify their stack into a single user lifecycle management solution for identifying access and device management.

“MSPs can definitely help them in picking the right tool.”

But choosing the right tool is becoming increasingly complex in an ocean of choice, and SMEs are lost.

Given the amount and maybe limited capabilities of current cyber solutions, the lack in cybersecurity strategy might be due to the vendors providing unadapted tools.

“As AI has become more and more complex in the last couple of years,” security providers must “constantly adapt.”

“Lots of SMEs are not equipped enough and don't have experts at hand to understand all the different facets of cybersecurity, says Jebara.

“A lot of them are looking for additional ways to increase their understanding of cybersecurity and their protections against it, that's why they are going to MSPs.

“It's not just about protecting your device and passwords anymore, it's about protecting a lot more than that, which is leading to a tool sprawl.”

This is not only the source of confusion for the SMEs, but also a nuisance for user experience, according to JumpCloud’s research.

“If you're using a tool for multi-factor authentication, a tool for password management, a tool for single sign on, a tool that manages policies, a password for your device, a different password for your cloud applications, you can see how the user experience on a daily basis is degraded.

“The obvious concern is productivity and how these different tools are affecting it.

“70 per cent of tickets can sometimes be password reset tickets.

“User experience plays a big role when it comes to having an effective cybersecurity programme in place.

“41 per cent of UK SMEs in our report reported using between six and 15 passwords.”

But UK SMEs are also the champions of preparations when it comes to cyber defence, as they are “topping the list when it comes to companies who are expecting their IT budgets to increase.”

“80 per cent of UK SMEs are expecting their budgets to rise in 2025.

“That’s up from 68 per cent before.

“Out of the US and Australia, UK SMEs were planning the highest increase in IT budgets, and 52 per cent of this budget is planned to go into cybersecurity tools in the next six months.

“That makes UK SMEs more equipped or more prepared for these types of threats.”