N-able sees over the MSP horizon

N-able’s Second Annual MSP Horizons Report, released earlier this year, reveals a robust growth trajectory for managed service providers (MSPs) worldwide, with cybersecurity emerging as the sector’s most dynamic driver. As MSPs adapt to rising demand for advanced threat protection and compliance support, the report highlights both the scale of opportunity and the operational challenges ahead. We spoke with N-able CEO John Pagliuca to unpack the findings, explore what they mean for MSPs navigating global markets, and understand how strategic investment in cybersecurity is reshaping the future of service delivery.

How does N-able plan to use the insights from this report for its future strategies?

A central theme of this year’s report was cyber resilience, and we’re helping IT service providers protect businesses from evolving cyberthreats and become more resilient by continuing to scale our cybersecurity offering, thanks to our acquisition of Adlumin late last year. We have a laser focus on small to medium enterprises and the mid-market, making sure their needs are met so they can be productive, collaborate effectively in this hybrid world, and, most importantly, that they do so in a secure fashion.

We also know from the report that M&A is firmly back on the agenda, with 90% of those surveyed interested in M&A with specific growth factors (acquiring new skills and/or regions) as the primary motivator—up from 44% last year. M&A, or MSP consolidation, can actually be a positive for the market. As these MSPs scale, they’re co-managing IT with some of the largest banks, hospitals, and retailers in the world. And part of that’s because they’ve grown up; it’s not your Granddad’s MSP. These are not folks that are doing break/fix—they are funded, experienced, and, as they grow at scale, that leaves plenty of room for the smaller MSPs to fill the gaps, so it’s effectively a net positive in the industry overall.

The report really confirmed what we are hearing from our network, that forward-looking businesses are focusing on specialisations that will not only provide the most value to their customers, but also help them to remain competitive. These specialisms include cybersecurity, cloud, AI, risk management, compliance monitoring, and vertical capability. In a crowded market, becoming a go-to expert in one of these defined areas builds trust, strengthens customer loyalty, and helps drive sustainable growth.

 With cybersecurity becoming a non-negotiable focus for MSPs, what investments or innovations is N-able offering to help partners stay ahead?

Cybersecurity remains a constant trend and a key revenue driver. For the small and medium enterprises and mid-market, they’re not necessarily going to have the scale to build a core competency when it comes to security—they often need to lean on the professional.

In response to this demand, we acquired Adlumin in November 2024 to continue our cyber resiliency story and help customers become the long-term security partners their clients are looking for—without them having to use resources building a SOC internally, which would cost an amount of pounds the majority don’t have.

Another key area that SMBs need help with is threat detection. We offer an Extended Threat Detection and Response (XDR) platform. This allows MSPs and those in the channel to actually address threat detection themselves, without that heavy price tag. MDR defends what XDR detects, so by having access to both, it’s your detective and defender rolled into one. The platform also leverages AI to assist teams in the identification of abnormal activity across endpoints, networks, and cloud environments, spotting threats that traditional tools might miss—transforming how cybersecurity is managed.

 How is N-able addressing the knowledge gap for MSPs unexpectedly transitioning into cyber ops? 

We know one thing that never changes in IT is that IT pros have to wear a million different hats. They are required to be experts on all things security, as well as keep up to date with compliance and regulatory changes, so that they can advise customers accurately and be that trusted advisor. The multitasking nature of IT operations primarily challenges the MSPs in the mid-market, simply because of lower capacity. In the morning, they act as the vulnerability and patching extraordinaire, next it’s sec ops, in the afternoon it’s data protection, and then these cycles repeat.

We give customers direct access to our N-able experts to help solve the challenges they are dealing with every day. We also provide workshops and table-top exercises to make sure they have an effective game plan that can be rolled out when, not if, a cybersecurity incident takes place. We encourage MSPs, whether they are our customer or not, to attend our Empower events, online bootcamps, and “office hours”where business owners can not only talk to our experts but also learn from their peers in the industry.

Do you foresee cyber insurance driving the creation of new tools, services, or partnerships for N-able?

The cybersecurity piece of the puzzle will only continue to grow. The report clearly highlights that many of us have been able to go out and build a piece of business out of it, and I don’t see that changing. I see it increasing.

In fact, when we recently spoke to one of our partners, John Joyce of CRS Technology Consultants, he declared, “Cyber insurance is helping to move all MSPs (big and small) closer to cybersecurity. I always say the insurance industry is the best salesperson we’ve ever had. I can go into a meeting with a customer or prospect and tell them 100 times why a tool, service or layer of protection has value, and they’re going to listen to me, and many of them will even hear what I’m saying. But when an insurance provider tells them they have to do this, suddenly it’s no longer ‘John came and tried to sell me something’, it’s ‘John had a solution to solve the problem that the insurance company just created’.”

 How is N-able preparing to support partners in meeting industry regulations and standards?

If they haven’t already, IT service providers should be investing in building Compliance-as-a-Service, not only providing another potential revenue stream, but helping build that trusted advisor status. The goal is to help keep their customers up to date with obligations set out in cyber insurance policies and to adhere to requirements such as maintaining up-to-date patches and protecting software on devices—easing stress and “outsourcing” compliance in a similar way to data protection or endpoint protection.

It’s a significant tailwind for IT services providers – as I mentioned above, some of our partners claim cyber insurance is the “best salesperson” they have, driving their customers (current and new) to approach them to adopt reliable security solutions and best practices. Cyber resiliency is a pivotal part of the value these businesses deliver, and it’s hard to name an industry that isn’t currently impacted by growing regulatory demands. More than ever, IT services providers can own the security conversation with the mature technologies, know-how, and services to back it up, while hooking into compliance.

We continue to collaborate with relevant industry organisations and provide resources that help MSPs navigate the evolving compliance landscape. For example, we work with the MSPAlliance and its Cyber Verify programme, which is available to our customers globally. This initiative assists MSPs in identifying compliance gaps and helps our customers understand how to potentially utilise our solutions in their tech stack to strengthen their compliance initiatives.

The report highlights a crowded marketplace. How is N-able helping MSPs stand out and capitalise on opportunities?

I believe what sets us apart is proactive enablement, combined with best-in-class solutions and the flexibility to build the tech stack customers need through our open Ecoverse model. We don’t just deliver tools, we work side by side with customers to help them meet rising demands for cyber resilience. By providing hands-on support, expert knowledge, aligning with customer needs, and investing in strategic innovations like XDR and MDR capabilities, our mission is to give customers the power to stay competitive, secure more contracts, and grow faster.

My main recommendation for MSPs is to focus on the three verbs that matter most as foundational growth drivers—to standardise, which enables the ability to more smartly automate, with the need also to augment new services. It’s important for MSPs to automate and standardise their tech stacks to avoid inefficiencies and drive profitability.

Making the most out of AI is another area where MSPs can effectively outsource administrative tasks, freeing up valuable time for new product and strategy development that sets them apart. It can also be added to marketing and sales products for smaller MSPs who don’t have the people or resources. At N-able, we’re using AI in two ways. To make our teams more efficient, letting it take over the repetitive, mundane tasks, and to help keep our business and our customers secure, for example, automating threat detection, response, and prevention. By integrating AI into their operations, MSPs can improve efficiency, reduce response times, and offer stronger, more proactive security for themselves and their customers.