After several notorious ransomware gangs were knocked out by law enforcement in 2023, ransomware attacks are on the rise again and soaring to all-time highs in 2024. Many gangs quickly reorganized and reformed, with leaders launching new platforms and expanding their web of bad actors. 

Ransomware attacks are bigger and bolder than ever this year, but even as attackers focus on new targets, small- and medium-sized enterprises (SMEs) remain under threat. With security breaches and ransom prices surging, it’s critical to stay on top of the latest attack tactics, gangs, and news. Let’s see who’s behind the most damaging ransomware attacks this year, and how you can protect your network, customers, and co-workers. 

Recent Ransomware Attacks In 2024

This year ransomware is on pace to cause over $40 billion in losses for organizations in the U.S. Ransoms, lost productivity, and system outages all factor in the equation. And large-scale breaches involving ransomware are not a phenomenon of 2024 at all. But even worse, people’s lives are increasingly put at risk by malicious attackers. These are some of the most alarming attacks of 2024.

September 2024

NHS London: Qilin ransom gang unleashed an attack that compromised the data of almost 1 million National Heathcare System patients in London hospitals. The attackers published personal information about patients with sensitive medical conditions like cancer and sexually transmitted diseases.

Stillwater Mining Company: In September, Stillwater company officials discovered the personal information of over 7,000 employees had been stolen using RansomHub RaaS (Ransomware as a Service). The attack first happened over the summer, but it took Stillwater months to catch on to the breach.

Kawasaki Motors Europe: RansomHub was also behind a major attack on Kawasaki’s European offices. Kawasaki swiftly shut its servers down to isolate the issue and perform recovery operations. RansomHub claims to have stolen almost 500 GB of data.

August 2024

City of Columbus, OH: Rhysida ransom group stole a massive 3TB of data from the City of Columbus, including sensitive employee records and data. After the city refused to meet Rhysida’s ransom price all the data was dumped onto the dark web.

Sumter County, FL Sheriff: Rhysida hit another government target, breaching the Sheriff’s Office systems and potentially compromising 150,000 citizens. Passports, SSNs, and other data was stolen. Rhysida demanded a payment of 7 bitcoin (worth almost half a million dollars).

Keytronic: Electronics manufacturing firm Keytronics reported losing over $17 million due to a ransomware attack by Black Basta, that disrupted production and office operations at its facilities in the U.S. and Mexico.

July 2024

Disney: NullBulge Group stole 1TB of data from Disney’s internal Slack platform and leaked it online. The breach included unreleased Disney projects, concepts, artwork, and code. The hackers asserted they were acting in the name of “artists’ rights.”

AT&T: Hacker group ShinyHunters stole metadata from all call logs and texts made by AT&T customers over a six-month period in 2022.

Rite Aid Pharmacy: Over 2.2 million patients were compromised by RansomHub attackers that posed as Rite Aid employees to steal their data. RansomHub threatened to leak personal information, ID numbers, and driver’s license information obtained from Rite Aid. 

June 2024

Panera Bread: An attack by an unknown group interrupted service on Panera’s website, app, phone systems, and POS systems. Thousands of employee social security numbers and other personal information was also stolen in a major data breach. Internal sources indicate Panera succumbed to the attackers’ demands, paying an undisclosed ransom.

Pandabuy: Giant Chinese shopping platform Pandabuy paid a ransom to prevent stolen customer data from being leaked — but then the hackers immediately demanded another ransom. The ongoing conflict resulted in 3 million rows of customer data being leaked onto BreachForums.

Cleveland, OH: An unknown hacking group forced Cleveland City Hall to temporarily shut down due to a ransomware attack that debilitated city computer systems.

CDK Global: BlackSuit ransomware caused a major IT outage that wreaked havoc on thousands of car dealerships in North America. CDK struggled to restore services to the dealers effectively or in a timely manner, forcing them to pay the ransom so auto dealers could get back online.

May 2024

Wichita, KS: Several government services were shut down to prevent a malware attack from spreading across its entire network. LockBit was responsible for the attack that disrupted payment systems and brought flight operations to a halt at the Wichita airport.

Ascension Health: An “honest mistake” led to a disruption of clinical operations at one of the largest Catholic health providers in the U.S. Black Basta was behind an attack that launched after an employee mistakenly downloaded a malicious file.

Ohio Lottery: 500,000 people were affected by an attack on the Ohio State Lottery. Hacker group DragonForce took credit, and said they gained access to employee and player data including contact information, birthdates, winnings, and social security numbers.

Ticketmaster: ShinyHunters stole credit card details, contact and personal information from over 550 million Ticketmaster/Live Nation customers. The group put the data up for sale on the dark web, priced at half a million dollars.

Aril 2024

Omni Hotels: Daixin ransomware launched an attack that took down Omni Hotels’ network nationwide and impacted reservations, hotel room locks, and POS systems. Daixin posted screenshots of sensitive stolen data from over 3.5 million Omni guests.

Group Health Cooperative (Wisconsin): A BlackSuit data breach stole personal and medical documents from more than 500,000 patients. Systems were shut down for several hours as internal IT teams worked to contain the attack. 

United Nations Development Programme: UN systems were breached by 8Base, disrupting UN operations in Copenhagen. During the attack 8Base claimed to steal massive amounts of confidential information, including accounting records, contracts, invoices, and other official documents.

UnitedHealth Group: BlackCat ransom group, also known as ALPHV, stole 6TB of sensitive patient data. United Health stated the breach caused more than $800 million in financial damages — in addition to meeting BlackCat’s demands for a $22 million ransom.

March 2024

Duvel Brewery: Beer production was brought to a halt at one of Belgium’s largest breweries after a ransomware attack by Stormous.

Crinetics Pharmaceuticals: Internal IT teams uncovered suspicious activity in an employee account — but by the time they had isolated the threat, LockBit posted that they’d breached Crinetics systems and stolen major amounts of data. LockBit demanded a $4 million ransom.

MarineMax: Rhysida ransomware struck the world’s largest luxury yacht dealer, stealing financial information and company records as well as information from a database of the world’s wealthiest customers. Rhysida put the data up for sale for the price of 15 bitcoin.

February 2024

Lurie Children’s Hospital: The Chicago children’s hospital had to take IT systems offline and was forced to delay care for many of its patients. Rhysida set a price of $3.7 million for 600GB of data that may include as many as 200,000 patients. After Lurie refused to meet the price, the data was leaked online.

California SEIU 1000: A union that represents 100,000 California workers suffered network outages after an attack by LockBit. The ransomware gang stole employee SSNs, financial documents, and salary information.

Trans-Northern Pipelines: The Canadian petroleum pipeline operator was hit by a ALPHV ransomware attack. Trans-Northern said their security teams quickly isolated the incident without major issues, but ALPHV claims to have stolen almost 190GB of company data and documents.

January 2024

Fulton County, GA: A LockBit attack crippled Fulton County government systems for weeks, causing problems for utilities, court, and tax networks. Everything from marriage licenses to police operations were affected, and many offices had to resort back to using paper forms during the outage. LockBit claimed they gained access to “confidential documents” and threatened to leak them.

loanDepot: An unknown group disrupted payment systems that disrupted mortgage payments for millions of loanDepot customers. The hackers also stole the data of over 16 million customers, potentially including bank account information. 

Bucks County, PA: Hackers knocked out 911 terminals inside fire, police, and emergency vehicles in a Pennsylvania county home to 650,000 residents. The National Guard was brought in to assist with emergencies as the county attempted to resolve the issue.

Schneider Energy: Cactus ransomware stole terabytes of company data in a breach. The attack compromised over 2,000 enterprise clients including Walmart, PepsiCo, Hilton, and DuPont. It’s unknown whether ransom demands were met. 

Notable Ransomware Groups

Even after coordinated federal and international crackdowns, ransomware gangs are as powerful as ever. Groups that were previously broken up emerged under new criminal organizations, and newer gangs rose to prominence in some of the highest-profile attacks of the year. These are a few of the most dangerous names in ransomware. 

LockBit is a Russian gang with global reach that roared back with a vengeance in 2024 after suffering a defeat when law enforcement took down its platform. LockBit provides RaaS (Ransomware as a Service) and has been the most deployed ransomware since 2022. Because of LockBit’s popularity, attacks can vary greatly in tactics and techniques.

ALPHV/BlackCat was formed after a gang known as BlackMatter’s servers were taken down by a sting in 2021. ALPHV makes some of the most technically advanced ransomware out there, capable of evading even the top cybersecurity systems. They’re thought to have the most experienced and tech savvy network of affiliates, and attack both Windows and Linux systems. ALPHV is one of the only ransom gangs to use a “triple extortion” technique leveraging stolen data, encryption, and denial of service attacks.

Rhysida is a fast-rising, aggressive ransomware gang responsible for some of the most damaging attacks in 2024. Rhysida’s malware was initially considered to be novice, but it rapidly became more elaborate and difficult to detect. Rhysida has led the offensive against healthcare systems and government offices.

Hunters International, ShinyHunters, 8Base, and BlackSuit are other established ransomware gangs that thrived in 2024. DragonForce and RansomHub are newer names emerging as more formidable threats this year.

Latest Ransomware Trends

Several ransomware trends took hold this year, with attackers focusing on bigger targets and demanding bigger payouts to match. Attacks on infrastructure became more common — attackers went hard after healthcare systems, government offices, and supply chain vendors.

Like everyone else, hackers increasingly deployed AI to help them carry out attacks. AI allows malware to adapt in real time to evade security, or can be used to clone voices, email, or other communications to make phishing seem more legit.

Ransomware as a Service continued to grow in popularity, as ransomware providers made their platforms more accessible to bad actors with fewer technical skills. Ransomware also got more sophisticated across the board, taking advantage of zero-day vulnerabilities more frequently and utilizing remote access tools to improve the effectiveness of attacks.

As always, phishing attacks on individual employees were one of the most effective ways for ransomware gangs to exploit systems. Attackers often breached security through individuals in BYOD situations or on SaaS cloud platforms with fewer safeguards.

With ransomware becoming more accessible and sophisticated, it’s predicted that attacks will only get more frequent — and more disruptive — as we head into 2025.

Ransomware Prevention and Protection

Ransomware can be tough to defend against because it can infiltrate an entire network through just one user. The more you can do to protect your users and network, the better chance you’ll have to successfully fend off bad actors.

Best Practices for Preventing Ransomware

These are some tried-and-true methods to help prevent a ransomware attack and keep your network running securely.

• Use Zero Trust security policies following a “trust nothing, verify everything” principle.

• Secure your network with unique passwords and multi-factor authentication (MFA).

• Keep security patches up to date on all software and services like email, servers, and VPNs.

• Back up data frequently, on multiple different media formats and keep one off-site copy.

• Educate users about device safety and how to recognize the latest phishing scams.

• Utilize AI to fight malware or other malicious threats.

Choosing the Right Security Solutions

The most effective security solutions vary from organization to organization. By taking the time to analyze the specifics around the way your company uses technology, you’ll gain the insights to develop a rock-solid defense strategy.

• Map attack surfaces and be aware of the latest ransomware attack vectors to identify vulnerabilities and determine best defenses.

• Evaluate security risks of SaaS or other third-party platforms your organization is using.

• Evaluate vulnerabilities unique to remote work and BYOD.

• Consider access controls like single sign-on (SSO), conditional access, password management, or passwordless authentication to improve individual user security.

• Unify IT stacks to reduce exploitable security gaps.

Recovery and Response Strategies

No matter how good your defenses are, sometimes ransomware sneaks into your system. By having a response plan ready to go, you can mitigate attacks quickly and stave off major damage.

• Create an incident response plan with standardized protocols for identifying and managing breaches.

• Isolate the infected system to prevent ransomware from spreading.

• Remove ransomware with antivirus and antimalware software, then clean the infected system.

• Restore data from a clean backup source. Refrain from using backups that were made while the system was under attack as they could contain encrypted files that could relaunch the attack.

• Review your security response and make improvements where vulnerabilities are detected.

• Explore insurance coverage against ransomware and other cyberattacks.

If considering a ransom payment, be aware that meeting attackers’ demands usually encourages future attacks.

Secure Identities, Devices, and Access with JumpCloud

JumpCloud brings together a variety of services that bolster your defenses against all sorts of attacks, including ransomware attacks. Whether you leverage JumpCloud to manage your device fleet, end user identities, single sign-on access, or any combination thereof, JumpCloud has the capabilities to help you lock down and protect your organization and minimize your exposure to these types of attacks. 

Learn more about how JumpCloud reduces attack surfaces, makes authentication more reliable and efficient, protects against phishing attacks, and unifies platform and device management across your network.

For managed service providers (MSPs), competition can be stiff, which makes client retention critical. 

Recent findings from JumpCloud’s 2024 SME IT Trends report, however, revealed some indicators of downscaling in small- to medium-sized enterprises’ (SMEs’) MSP contracts: the percentage of SMEs outsourcing their entire IT management has dropped from 42% to 29%. Despite these drops, however, SMEs still seem invested in their MSP relationships: 76% of SMEs use MSPs for some level of IT support, and 67% plan to increase their investment over the next six months. So, how can you leverage SMEs’ continued interest in MSPs, prevent churn, and encourage deeper investments with your SME clients?

This blog will dive into the potential factors driving this downtick in full MSP investment and ideas for retention strategies you can implement to strengthen your client relationships.  

Note: all data cited in this blog is sourced from JumpCloud’s eBook, Your Route to Positive Client Interactions, unless otherwise cited. 

Understanding Churn Drivers

Understanding the factors that are likely contributing to churn and downscaling is the first step to implementing effective retention strategies to reverse the trend. The following are three common churn drivers among SMEs. 

1. Cost and Mismatched Services

One of the leading causes of client churn is cost. With 75% of SMEs reporting rising licensing and subscription fees from their vendors, it’s no wonder that 28% have decided to stop working with MSPs due to affordability concerns.

In addition to cost concerns, many SMEs feel that the services provided by their MSPs are no longer suitable for their evolving needs. For instance, the report reveals that 26% of SMEs believe they have outgrown their MSP’s offerings, 21% find that their MSPs offer more services than they require,and 16% of SMEs expressed that they felt too small to be a priority for their MSP.This mismatch can create frustration and drive customers to look elsewhere for an alternative MSP with offerings that better align with their requirements.

2. The Security Imperative

Security is a significant concern for SMEs, and it plays a critical role in client retention. In fact, 39% of SMEs (both those that use MSPs and those that don’t) express doubts about MSPs’ ability to manage security effectively. This highlights potential for churn for current customers as well as a barrier to entry for SMEs not yet using MSPs. 

Fortunately, more than half (56%) of the SMEs already working with MSPs reported that their MSPs have improved their security posture.This indicates that many MSPs are delivering on their clients’ expectations of security — the problem may lie in their ability to communicate those services and benefits upfront. 

This situation presents a unique opportunity for you to differentiate your services. By making security a cornerstone of your offerings and including your security offerings clearly in your messaging, you can build trust and loyalty among your clients. Additionally, offering security-focused services or add-ons can enhance your value proposition, showing clients that you prioritize their safety.

3. Poor Client Experiences

The client experience is another vital factor in retention. Nearly a quarter (23%) of SMEs have terminated relationships with MSPs due to poor customer service. This statistic highlights the importance of prioritizing every interaction with your clients. Investing in training for your customer-facing staff will empower them to deliver exceptional service and promptly address any concerns.

Nearly a quarter of SMEs have terminated their relationship with MSPs due to poor customer service or a bad experience.

Strategies for Reducing Churn

To effectively combat churn and attract new customers, consider implementing the following strategies:

1. Diversify your service offerings: Develop flexible service packages that cater to various business sizes and requirements. This approach will help address the concerns of SMEs who may feel underserved or overwhelmed.
2. Foster open communication: Regularly check in with your clients to assess their satisfaction and evolving needs. Staying aligned with their expectations is critical to maintaining a positive relationship with them.
3. Implement feedback loops: Actively seek client feedback and respond to it. This will help you identify areas for improvement before they escalate into reasons for termination.
4. Highlight value beyond cost: Clearly communicate the value you provide — not just in services, but also through enhanced security, compliance support, and the peace of mind that comes with having a dedicated IT partner.

Looking Ahead: Building Lasting Partnerships

By understanding the factors that contribute to client churn, you can strengthen your relationships with SMEs as well as build your customer base. Addressing concerns related to cost, service fit, customer experience, and security will be key to differentiating yourself and communicating your value in a way that resonates with your SME customers.

To dive deeper into these stats and other related to SMEs and how they work with MSPs, check out JumpCloud’s free report, Your Route to Positive Client Interactions.

So many organizations these days just don’t need (or can’t financially justify) an investment in in-house IT departments managing services, devices, and security threats. But you also can’t function today as a business or organization without some technical expertise; the IT environment is complex and always changing. MSPs provide expert support with the ability to quickly scale, adapt, and respond to evolving compliance, cybersecurity needs, user demands, and technology.

Overview of Managed Service Provider Market

The current IT landscape requires expertise in an expanding range of services, and very few smaller organizations have the resources or personnel to handle it effectively. While size is not the only factor that determines use, it generally holds true that the smaller your organization is, the more likely it is to engage with an MSP to handle services you would otherwise be unable (or even unwise) to provide in house.

By outsourcing tasks like cloud and SaaS management, device and user controls, compliance, and security services to an MSP, businesses get the benefit of specialized knowledge, skills, and automated technology that can help fill in their tech gaps and maximize their IT spend.

Definition and Role of MSPs

Managed service providers act like an extension of an IT team — but there’s a big difference in how they operate. While traditional IT services are reactive, responding to user or network issues as they’re notified of them, MSPs are proactive with a focus on preventing issues from happening in the first place.

MSPs provide active network monitoring, data center and services management, security solutions, and keep up to date with the latest compliance regulations. With an MSP, your IT department will gain a lot more flexibility, reduced downtime, and confidence knowing that operations will run smoothly.

Importance of MSPs in Today’s Business Landscape

MSPs are becoming increasingly critical across all industries for organizations of all sizes. Large organizations with complex compliance and security needs like finance and healthcare benefit from an MSP’s active monitoring, advanced cybersecurity, and ability to adapt quickly to new regulations. Small- and medium-sized businesses (SMBs) can take advantage of top-tier IT services and support without the expense of hiring an in-house team.

As the working world continues migrating to the cloud, MSPs ensure that the transition is secure and provides more efficient technology solutions moving forward.

Key Market Statistics and Figures

Recent surveys show that use of MSPs is growing, with security at the top of the list for many organizations.

• Almost 90% of SMBs currently use an MSP to handle some of their IT needs or are considering it.
• 78% of organizations view MSPs as a solution for Internet of Things (IoT) management.
• Roughly 60% of large organizations across the globe use MSPs to streamline IT and cloud services.
• 60% of respondents said cybersecurity was the top challenge, which led them to partner with an MSP.
• 48% cited device management and migration to remote work as areas MSPs could handle better than traditional IT.

Managed Services Market and Growth Trends

The use of MSPs is growing due to cost benefits, more predictable budgeting, and scalability. The latest trends in technology are mirrored in the managed services market, with cybersecurity, AI tools, and cloud services leading the way.

Global Market Size and Projected Growth

The MSP market is growing in 2024 and shows no signs of slowing down anytime soon. The market is expected to reach almost $350 billion globally by the end of the year and soar to over $1 trillion by 2033, at a CAGR of 12.9%.

Key Trends Driving Market Expansion

Security, adoption of cloud technologies, and automation are areas where MSPs excel over traditional IT departments.

MSPs enhance security through continuous network and data monitoring, password management and passwordless login technologies, device management, and improved compliance. Many MSPs provide advanced data backup and disaster recovery solutions that significantly shorten recovery time in the event of a breach.

MSPs utilize automation to streamline operations and manage resources better. They make repetitive tasks more efficient and remove the risk of human error that can lead to security holes or extended outages.

With cloud operations expanding and many organizations relying on multi-cloud environments, MSPs consolidate management and provide infrastructure to deploy multiple services efficiently.

Regional Market Analysis and Differences

These are the key statistics as organizations implement MSPs across the globe:

• With the U.S. driving demand, North America makes up the largest share of the MSP market, expected to grow at a CAGR of 12.2% by 2033.
• Europe is the second-largest region, with a CAGR of 12.5% by 2030.
• Asia is the fastest growing region for MSPs.

Economic Impact of MSPs

Most organizations using MSPs feel a major economic impact.

MSPs increase productivity by making IT operations more efficient and secure, allowing businesses to apply funds that would be spent on internal IT teams to other needs. Advanced single sign-on (SSO) and device management technologies improve the experience for all users and make it more likely that protocols will be followed.

The advanced cybersecurity features of MSPs prevent breaches and can potentially save millions in legal fees, fines, and ransoms.

Cost Savings and Efficiency Improvements

By teaming up with an MSP, organizations can contract for the specific services they need rather than having to hire, build, and train an entire in-house IT team. With technology and compliance changing faster than ever, the use of an MSP makes it much easier to keep up, without the cost of additional personnel or certifications.

The tools used by MSPs are leveraged across their client base, making it more cost-effective to develop advanced technology that makes systems more efficient and secure.

Research shows that organizations using MSPs experienced significant savings.

• Organizations that contract MSPs can reduce overall IT costs by 20-30%.
• MSPs increase productivity by 15-25% through improved efficiency and reduced downtime.
• MSPs reduce the risk of cyberattacks by up to 50%.

Revenue Generation Areas for MSPs

MSPs create value by providing advanced technology solutions for business.

Many of the services they provide wouldn’t be financially or logistically feasible with an in-house IT team. With highly trained specialists dedicated to areas like network and user management, cloud services, data protection, and cybersecurity MSPs can devote more time and resources to developing technology that makes online environments more productive and secure.

Because MSPs work at scale they can partner with a wide variety of clients, opening up revenue streams to build and maintain their own services more efficiently than any individual in-house IT team.

Comparison of In-House IT vs. Managed Services

In-house IT teams and MSPs vary in a few key ways. By understanding the differences, you can see how to leverage both to get the most out of your IT services.

In-house IT teams tend to be better at daily operational tasks and supporting unique environments and requests. They can be faster to respond to some issues that are specific to the organization, but overall their response times are slower to systematic issues like breaches or misconfigurations. Generally, they’re also slower to adapt to emerging cyberthreats and compliance changes. Some of the biggest challenges in-house IT departments face are scaling, budgets, and skills shortages.

MSPs excel when it comes to security and scalability. Technologies like continuous monitoring save on salaries and unexpected costs like breaches or compliance management. They can also detect and manage misconfigurations faster. All of this reduces downtime and leads to faster fixes, for a more secure and productive work environment. Most MSPs offer flexible payment structures so that organizations can take advantage of advanced services without breaking their budgets. While MSPs do provide a lot of economic advantages, it can be more challenging for them to handle one-off projects or unique requests.

Market Segmentation and Services Offered

Some MSPs specialize in a specific service, while some offer a full range of combined services. Some MSPs offer a suite of services in a customized package to address specific client needs like compliance, network management, or device management.

Breakdown by Service Type

There are three main services that MSPs provide. Managed network services (MNS) focus on maintenance and management of network systems and hardware, as well as providing IT support to keep technology current and services operating steadily. Managed cloud services (MCS) manage and optimize cloud services, which could include user management and security, deployment, and unification. Managed security services (MSS) detect threats, manage firewalls, and handle endpoint security and data encryption. They also make sure systems are compliant with the latest regulations and privacy laws. Managed security is currently the most in-demand service due to increasing threats in the cybersecurity space.

Deployment Models: On-Premises vs. Cloud

When working with an MSP, you’ll need to know the best way to deploy services for your organization.

On-premises solutions give your organization the most control over your IT infrastructure. With this approach, sensitive data is stored and managed on-site at the company. This can be a great model for organizations that have strict security and compliance needs. However, on-premises deployment can take a lot of investment and can be costlier to update and maintain.

Cloud deployment is extremely flexible and scalable, providing your organization with a much greater degree of adaptability at a lower cost. Cloud providers host data and services remotely, which reduces the need for in-house staff, hardware, and maintenance. Some organizations might be hesitant to use cloud deployment due to their security needs.

For some organizations, hybrid models are the most effective model of deployment. In a hybrid environment, sensitive data is administered on-site, while less critical functions like SaaS management are handled by the MSP remotely. Though hybrids can provide the best of both worlds, they’re more complex to manage and require specialized IT skills.

Industry-Specific Solutions and Verticals Served

There are MSPs for every type of organization. Fields like finance, government, and healthcare benefit from MSPs that focus on cybersecurity, compliance, automation, and monitoring. Retail and manufacturing use MSPs to optimize supply chain management, IoT integration, and analytics.

Future Outlook for Managed Service Providers

MSPs will continue to play a major part in IT moving forward. As technology evolves, regulators issue new laws to protect consumers, and cybercriminals deploy AI and advanced tools, MSPs will be critical to ensuring organizations maintain their systems and data. MSPs will develop new ways to maximize efficiency and safety that influence IT protocols across the industry — and to do that they’ll also need to find new ways to support their own business.

Emerging Trends and Technologies

MSPs have already started to expand into new technologies like AI, blockchain, and IoT to enhance the services they provide.

AI automates processes that help tighten security by detecting threats faster and making fixes more effectively. MSPs also improve predictive analytics to identify issues earlier and reduce downtime.

MSPs are exploring blockchain technologies to enhance cybersecurity and data integrity. Using decentralized technology like blockchain can make networks more secure against attacks by eliminating single breach points.

MSPs help integrate IoT devices across existing networks, and are using AI to find new ways to manage and analyze the data created by the influx of devices.

Now that hybrid and remote work models are the new normal, MSPs will need to keep building new tools that support remote environments. Cloud integration, unification, Zero Trust frameworks, and device management are all areas we can expect to see continued advances. Shadow IT is becoming a persistent threat and is often difficult for in-house teams to get in check.

Hyperconverged infrastructure (HCI) is a new development that uses intelligent software to bring storage, computing, and networking together under one umbrella and replaces legacy data management systems.

Challenges and Opportunities in the MSP Market

While MSPs continue to grow rapidly, there are a few challenges on the road ahead. As the market grows, the field will get more crowded with new players. This will create more competition among MSPs but could drive further innovations, but it also means MSPs will need to increase marketing efforts to stand out.

With cybercriminals using new technologies MSPs need to move fast to stay ahead of emerging threats to their clients and their own networks. Investing in cyberinsurance, new security tools, and hiring experts could drive up costs for MSPs.

Supplying new technologies like AI and blockchain will also require more investment and resources from MSPs. But with both SMBs and large organizations facing many of these same challenges, plenty of opportunities remain for MSPs to take on the increasingly complex tasks that other organizations can’t handle. As MSPs bring on additional clients, managing all of them together could pose its own challenge.

Strategic Recommendations for MSPs

If you’re an MSP, it’s all about filling in the technology gaps that other organizations don’t have the time or the resources for.

Identifying industry needs hones focus on the areas organizations are concerned about taking on. Cybersecurity is a huge concern for organizations across the board right now, and many are counting on MSPs to provide a solution. Monitoring and automation technologies are areas that can give businesses a big boost in efficiency. Migration to cloud services is an area that creates a lot of challenges for in-house IT teams.

MSPs can build stronger relationships with clients by providing solutions to the problems traditional IT can’t deal with effectively.

By partnering with cloud-based platforms or other providers, MSPs can expand their services and streamline their own operations to provide cost-friendly options for all of their clients.

By keeping current to take advantage of trends and staying ahead of emerging cyberthreats, MSPs will continue to be a valued component of every organization’s IT infrastructure.

Learn More About JumpCloud for MSPs

See how JumpCloud for MSPs enables you to give your customers a seamless, secure IT experience from a single open directory platform.

So many organizations these days just don’t need (or can’t financially justify) an investment in in-house IT departments managing services, devices, and security threats. But you also can’t function today as a business or organization without some technical expertise; the IT environment is complex and always changing. MSPs provide expert support with the ability to quickly scale, adapt, and respond to evolving compliance, cybersecurity needs, user demands, and technology.

Overview of Managed Service Provider Market

The current IT landscape requires expertise in an expanding range of services, and very few smaller organizations have the resources or personnel to handle it effectively. While size is not the only factor that determines use, it generally holds true that the smaller your organization is, the more likely it is to engage with an MSP to handle services you would otherwise be unable (or even unwise) to provide in house.

By outsourcing tasks like cloud and SaaS management, device and user controls, compliance, and security services to an MSP, businesses get the benefit of specialized knowledge, skills, and automated technology that can help fill in their tech gaps and maximize their IT spend.

Definition and Role of MSPs

Managed service providers act like an extension of an IT team — but there’s a big difference in how they operate. While traditional IT services are reactive, responding to user or network issues as they’re notified of them, MSPs are proactive with a focus on preventing issues from happening in the first place.

MSPs provide active network monitoring, data center and services management, security solutions, and keep up to date with the latest compliance regulations. With an MSP, your IT department will gain a lot more flexibility, reduced downtime, and confidence knowing that operations will run smoothly.

Importance of MSPs in Today’s Business Landscape

MSPs are becoming increasingly critical across all industries for organizations of all sizes. Large organizations with complex compliance and security needs like finance and healthcare benefit from an MSP’s active monitoring, advanced cybersecurity, and ability to adapt quickly to new regulations. Small- and medium-sized businesses (SMBs) can take advantage of top-tier IT services and support without the expense of hiring an in-house team.

As the working world continues migrating to the cloud, MSPs ensure that the transition is secure and provides more efficient technology solutions moving forward.

Key Market Statistics and Figures

Recent surveys show that use of MSPs is growing, with security at the top of the list for many organizations.

• Almost 90% of SMBs currently use an MSP to handle some of their IT needs or are considering it.
• 78% of organizations view MSPs as a solution for Internet of Things (IoT) management.
• Roughly 60% of large organizations across the globe use MSPs to streamline IT and cloud services.
• 60% of respondents said cybersecurity was the top challenge, which led them to partner with an MSP.
• 48% cited device management and migration to remote work as areas MSPs could handle better than traditional IT.

Managed Services Market and Growth Trends

The use of MSPs is growing due to cost benefits, more predictable budgeting, and scalability. The latest trends in technology are mirrored in the managed services market, with cybersecurity, AI tools, and cloud services leading the way.

Global Market Size and Projected Growth

The MSP market is growing in 2024 and shows no signs of slowing down anytime soon. The market is expected to reach almost $350 billion globally by the end of the year and soar to over $1 trillion by 2033, at a CAGR of 12.9%.

Key Trends Driving Market Expansion

Security, adoption of cloud technologies, and automation are areas where MSPs excel over traditional IT departments.

MSPs enhance security through continuous network and data monitoring, password management and passwordless login technologies, device management, and improved compliance. Many MSPs provide advanced data backup and disaster recovery solutions that significantly shorten recovery time in the event of a breach.

MSPs utilize automation to streamline operations and manage resources better. They make repetitive tasks more efficient and remove the risk of human error that can lead to security holes or extended outages.

With cloud operations expanding and many organizations relying on multi-cloud environments, MSPs consolidate management and provide infrastructure to deploy multiple services efficiently.

Regional Market Analysis and Differences

These are the key statistics as organizations implement MSPs across the globe:

• With the U.S. driving demand, North America makes up the largest share of the MSP market, expected to grow at a CAGR of 12.2% by 2033.
• Europe is the second-largest region, with a CAGR of 12.5% by 2030.
• Asia is the fastest growing region for MSPs.

Economic Impact of MSPs

Most organizations using MSPs feel a major economic impact.

MSPs increase productivity by making IT operations more efficient and secure, allowing businesses to apply funds that would be spent on internal IT teams to other needs. Advanced single sign-on (SSO) and device management technologies improve the experience for all users and make it more likely that protocols will be followed.

The advanced cybersecurity features of MSPs prevent breaches and can potentially save millions in legal fees, fines, and ransoms.

Cost Savings and Efficiency Improvements

By teaming up with an MSP, organizations can contract for the specific services they need rather than having to hire, build, and train an entire in-house IT team. With technology and compliance changing faster than ever, the use of an MSP makes it much easier to keep up, without the cost of additional personnel or certifications.

The tools used by MSPs are leveraged across their client base, making it more cost-effective to develop advanced technology that makes systems more efficient and secure.

Research shows that organizations using MSPs experienced significant savings.

• Organizations that contract MSPs can reduce overall IT costs by 20-30%.
• MSPs increase productivity by 15-25% through improved efficiency and reduced downtime.
• MSPs reduce the risk of cyberattacks by up to 50%.

Revenue Generation Areas for MSPs

MSPs create value by providing advanced technology solutions for business.

Many of the services they provide wouldn’t be financially or logistically feasible with an in-house IT team. With highly trained specialists dedicated to areas like network and user management, cloud services, data protection, and cybersecurity MSPs can devote more time and resources to developing technology that makes online environments more productive and secure.

Because MSPs work at scale they can partner with a wide variety of clients, opening up revenue streams to build and maintain their own services more efficiently than any individual in-house IT team.

Comparison of In-House IT vs. Managed Services

In-house IT teams and MSPs vary in a few key ways. By understanding the differences, you can see how to leverage both to get the most out of your IT services.

In-house IT teams tend to be better at daily operational tasks and supporting unique environments and requests. They can be faster to respond to some issues that are specific to the organization, but overall their response times are slower to systematic issues like breaches or misconfigurations. Generally, they’re also slower to adapt to emerging cyberthreats and compliance changes. Some of the biggest challenges in-house IT departments face are scaling, budgets, and skills shortages.

MSPs excel when it comes to security and scalability. Technologies like continuous monitoring save on salaries and unexpected costs like breaches or compliance management. They can also detect and manage misconfigurations faster. All of this reduces downtime and leads to faster fixes, for a more secure and productive work environment. Most MSPs offer flexible payment structures so that organizations can take advantage of advanced services without breaking their budgets. While MSPs do provide a lot of economic advantages, it can be more challenging for them to handle one-off projects or unique requests.

Market Segmentation and Services Offered

Some MSPs specialize in a specific service, while some offer a full range of combined services. Some MSPs offer a suite of services in a customized package to address specific client needs like compliance, network management, or device management.

Breakdown by Service Type

There are three main services that MSPs provide. Managed network services (MNS) focus on maintenance and management of network systems and hardware, as well as providing IT support to keep technology current and services operating steadily. Managed cloud services (MCS) manage and optimize cloud services, which could include user management and security, deployment, and unification. Managed security services (MSS) detect threats, manage firewalls, and handle endpoint security and data encryption. They also make sure systems are compliant with the latest regulations and privacy laws. Managed security is currently the most in-demand service due to increasing threats in the cybersecurity space.

Deployment Models: On-Premises vs. Cloud

When working with an MSP, you’ll need to know the best way to deploy services for your organization.

On-premises solutions give your organization the most control over your IT infrastructure. With this approach, sensitive data is stored and managed on-site at the company. This can be a great model for organizations that have strict security and compliance needs. However, on-premises deployment can take a lot of investment and can be costlier to update and maintain.

Cloud deployment is extremely flexible and scalable, providing your organization with a much greater degree of adaptability at a lower cost. Cloud providers host data and services remotely, which reduces the need for in-house staff, hardware, and maintenance. Some organizations might be hesitant to use cloud deployment due to their security needs.

For some organizations, hybrid models are the most effective model of deployment. In a hybrid environment, sensitive data is administered on-site, while less critical functions like SaaS management are handled by the MSP remotely. Though hybrids can provide the best of both worlds, they’re more complex to manage and require specialized IT skills.

Industry-Specific Solutions and Verticals Served

There are MSPs for every type of organization. Fields like finance, government, and healthcare benefit from MSPs that focus on cybersecurity, compliance, automation, and monitoring. Retail and manufacturing use MSPs to optimize supply chain management, IoT integration, and analytics.

Future Outlook for Managed Service Providers

MSPs will continue to play a major part in IT moving forward. As technology evolves, regulators issue new laws to protect consumers, and cybercriminals deploy AI and advanced tools, MSPs will be critical to ensuring organizations maintain their systems and data. MSPs will develop new ways to maximize efficiency and safety that influence IT protocols across the industry — and to do that they’ll also need to find new ways to support their own business.

Emerging Trends and Technologies

MSPs have already started to expand into new technologies like AI, blockchain, and IoT to enhance the services they provide.

AI automates processes that help tighten security by detecting threats faster and making fixes more effectively. MSPs also improve predictive analytics to identify issues earlier and reduce downtime.

MSPs are exploring blockchain technologies to enhance cybersecurity and data integrity. Using decentralized technology like blockchain can make networks more secure against attacks by eliminating single breach points.

MSPs help integrate IoT devices across existing networks, and are using AI to find new ways to manage and analyze the data created by the influx of devices.

Now that hybrid and remote work models are the new normal, MSPs will need to keep building new tools that support remote environments. Cloud integration, unification, Zero Trust frameworks, and device management are all areas we can expect to see continued advances. Shadow IT is becoming a persistent threat and is often difficult for in-house teams to get in check.

Hyperconverged infrastructure (HCI) is a new development that uses intelligent software to bring storage, computing, and networking together under one umbrella and replaces legacy data management systems.

Challenges and Opportunities in the MSP Market

While MSPs continue to grow rapidly, there are a few challenges on the road ahead. As the market grows, the field will get more crowded with new players. This will create more competition among MSPs but could drive further innovations, but it also means MSPs will need to increase marketing efforts to stand out.

With cybercriminals using new technologies MSPs need to move fast to stay ahead of emerging threats to their clients and their own networks. Investing in cyberinsurance, new security tools, and hiring experts could drive up costs for MSPs.

Supplying new technologies like AI and blockchain will also require more investment and resources from MSPs. But with both SMBs and large organizations facing many of these same challenges, plenty of opportunities remain for MSPs to take on the increasingly complex tasks that other organizations can’t handle. As MSPs bring on additional clients, managing all of them together could pose its own challenge.

Strategic Recommendations for MSPs

If you’re an MSP, it’s all about filling in the technology gaps that other organizations don’t have the time or the resources for.

Identifying industry needs hones focus on the areas organizations are concerned about taking on. Cybersecurity is a huge concern for organizations across the board right now, and many are counting on MSPs to provide a solution. Monitoring and automation technologies are areas that can give businesses a big boost in efficiency. Migration to cloud services is an area that creates a lot of challenges for in-house IT teams.

MSPs can build stronger relationships with clients by providing solutions to the problems traditional IT can’t deal with effectively.

By partnering with cloud-based platforms or other providers, MSPs can expand their services and streamline their own operations to provide cost-friendly options for all of their clients.

By keeping current to take advantage of trends and staying ahead of emerging cyberthreats, MSPs will continue to be a valued component of every organization’s IT infrastructure.

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