Future of Managed Services (MSP): 7 Key Trends to Watch For 2025

The future of managed services is brighter than ever, driven by fast technological advancements, shifting business needs, and ongoing innovation.

As we look toward 2025, several key trends are reshaping the industry, helping managed service providers (MSPs) deliver enhanced value to their clients.

According to a report by Statista, the future of managed services is expected to generate revenue of £1.39 billion in the UK in 2024. It is projected to grow at a compound annual growth rate (CAGR) of 3.89% from 2024 to 2029, resulting in a market volume of £1.67 billion by 2029.

In this blog post, we will share the seven key trends of managed services identified by our IT experts to help businesses achieve their strategic goals in 2025.

Key Takeaways:

• According to Canalys, revenue is projected to grow by at least 12% for MSPs, driven by increasing customer demand for cybersecurity, cloud services, application development, AI solution consulting, and compliance services.

• In 2025, the key trends in managed services will include Gen-AI integration, multi-cloud strategies, innovations in cybersecurity, enhancements in business continuity and disaster recovery, advancements in hybrid work models, prioritisation of core business functions, and personalised customer experiences.

How Managed Services Align with Your 2025 Vision

Here are seven key trends in managed services that will drive your strategic success in 2025:

1. AI Integration: Pioneering the Future of Technology

In 2024, Generative Artificial Intelligence (GenAI) tools are becoming important for Managed Service Providers (MSPs) at a time when investments in managed services are growing.

MSPs are using AI for various tasks, including scripting in RMM, automating ticketing and billing, managing projects, and creating proposals.

In the future, providers will incorporate AI into their existing tools as well as into new tools they develop, improving software accuracy in data centres, IaaS, and cybersecurity.

Moreover, in 2025, AI-driven tools like Microsoft Copilot are set to empower managed service providers to enhance proactive monitoring and automation, improve data management, and automate repetitive tasks.

Also, Gen-AI enhances the ability to identify potential system failures, reducing downtime and ensuring optimal performance. Automation reduces the cost of routine operations, freeing resources for strategic investments.

2. Accelerated Adoption of Multi-Cloud Strategies

With the increasing complexity of business IT systems, Multi-Cloud strategies have emerged as a growing trend. Multi-cloud means using cloud services from multiple public cloud providers simultaneously. It can include private, public clouds, or a mix of both.

Nowadays, companies no longer rely on a single cloud infrastructure, instead opting for diverse cloud services to enhance flexibility and scalability.

The multi-cloud strategy provides flexibility for using the best cloud computing environment for each task. By distributing workloads across multi-cloud service providers, businesses enhance system resilience while optimising costs.

The future of managed services lies in enabling seamless multiple cloud integrations. The managed services provider should invest in talent and tools to support this shift, ensuring businesses can maximise the benefits of their cloud infrastructure investments.

3. Cybersecurity Innovations: Addressing Rising Data Risks

As seen in 2024, the need for advanced cybersecurity solutions has become more critical with advancing cyber threats. In this space, Cyber innovations are helping managed services providers protect sensitive data and ensure compliance with strict regulatory demands and requirements.

In 2025, MSPs will harness advanced security tools including zero-trust frameworks, passwordless authentication, AI-powered threat detection, blockchain-based data protection and enhanced security frameworks.

We will also see an increase in co-managed and co-partnering models with MDR (Managed Detection and Response) and XDR (Extended Detection and Response) benefiting from these models.

4. Strengthening Business Continuity and Disaster Recovery Plans

Unexpected challenges, from cyberattacks to natural disasters, highlight the importance of resilient business continuity and disaster recovery (BC/DR) strategies. Managed services are pivotal in helping companies prepare for and recover from disruptions.

In 2025, MSPs will offer more advanced BC/DR solutions to ensure minimal downtime and faster recovery times.

In addition, cloud-based disaster recovery as a service (DRaaS) will become a go-to solution for companies looking to secure their operations against unexpected disruptions.

• Data Backup: Reliable and efficient backup systems ensure critical data is always accessible.

• Cost Efficiency: Streamlined recovery plans to maintain compliance with regulatory requirements, minimise downtime and reduce potential losses.

• Proactive Approach: Regular testing and updates to disaster recovery plans keep systems robust and ready for any event.

5. Prioritising Core Business Functions for Strategic Growth

Nowadays, companies are outsourcing non-core activities to MSPs, allowing them to focus on strategic core operations. From IT support to infrastructure management, MSPs handle routine tasks, freeing up internal resources for strategic planning.

By 2025, this trend will intensify, with MSPs becoming integral partners in building a company’s future.

This growing trend reinforces the value of the managed services approach, enabling organisations to achieve their strategic goals with greater efficiency.

A smart move for organisations should be investing in managed services to align their IT strategy with broader business goals and long-term success.

6. Remote Work Optimisation: Advancing the Hybrid Work Model

The shift towards remote and hybrid work has transformed how businesses operate. Managed services are at the forefront of this transformation, enabling seamless transitions and enhancing productivity.

By 2025, managed services providers will prioritise tools and services that enhance remote work capabilities. This includes secure virtual desktops, cloud-based collaboration platforms, advanced endpoint management solutions, employee training and ongoing support.

Also, MSPs will address challenges like network latency, employee productivity tracking, and secure access to company resources, ensuring seamless operations regardless of location.

7. Rising Demand for Personalised Customer Experiences

The future of managed services is shifting from one-size-fits-all solutions to personalised services.

In 2025, delivering exceptional customer experiences will be a top priority for businesses. Therefore, managed services will integrate advanced analytics and AI delivering more personalised experiences. From customising IT solutions to offering on-demand support, MSPs will cater to specific client needs with precision.

Additionally, this personalisation extends to proactive service delivery, ensuring that businesses not only meet but exceed customer expectations.

This growing demand highlights the role of managed services providers in driving business success through customer-centric strategies.

How can Aztech help?

Aztech is an award-winning managed services provider in the UK with a head office in Milton Keynes, Buckinghamshire and other offices in London and Cape Town.

Aztech has expanded its support to businesses of all sizes, i.e. small, SMEs and large enterprises in Buckinghamshire, Hertfordshire, Berkshire, Bedfordshire, Oxfordshire, and London areas.

At Aztech, we make sure your IT infrastructure runs smoothly and securely, around the clock. From keeping an eye on things to fixing problems quickly, our dedicated IT team is here to help. We offer tailored IT solutions and personalised support, so you can focus on growing your business while we handle the tech.

Aztech’s core managed IT services include managed IT support, co-managed support, IT support help desk, onsite support, IT health check and IT cost calculator.

So, let's work together—choose Aztech as your reliable managed IT service provider to make your business operations smoother.

Conclusion

The future of managed services is no longer just about maintaining IT systems but empowering organisations to focus on what they do best while ensuring seamless customer service.

As we move towards 2025, businesses that utilise these five key trends of managed IT services - Generative AI, multi-cloud services, data security, business continuity and disaster recovery (BR/DR) strategies, and hybrid work models will lead their industries, capitalising on the benefits of a proactive approach to technology and operations.