SMBs are generally considered the sweet spot for MSPs because smaller companies often lack the resources and expertise to handle all of their IT functions. However, a recent report from identity and access management vendor JumpCloud shows that larger companies are also increasingly turning to MSPs.

JumpCloud’s Q1 2025 SME IT Trends Report, "From Chaos to Control: Simplifying IT in the Fast Lane of Change" released last week showed more organizations relying on MSPs than in previous reports. The Q1 report said 35% of SMEs (up to 2,500 employees) surveyed use MSPs to fully manage IT -- up from 29% just six months ago. JumpCloud surveyed 900 IT decision-makers in the US, UK, and Australia including managers, directors, vice presidents, and executives in a variety of industries. Of US SMEs, 43% said MSPs fully managed their IT, which outpaced the global rate. SMEs in the UK and Australia each said 31% are fully managed by MSPs.

As JumpCloud put it, MSPs are moving from “Cost-Cutters to Consiglieres” in the eyes of SMEs. Remarkably, 93% of SME organizations surveyed use or are considering using an MSP.

Increased IT effectiveness was the top reason IT admins use MSPs (54%), compared to 41% (down from 58% two quarters ago) who cited cost effectiveness as a reason. Other reasons included strong customer support (41%), they stay up to date with the latest technologies (40%) and provide a better user experience (38%).

The upward trend is likely to continue, as 76% said they plan to increase MSP investment in the next year. Reputation is a key driver -- 45% said they find their MSP partners through recommendations compared to 37% through online search and 17% by MSPs reaching out to them.

Brad Lassiter, CEO of New York-based MSP LastTech, said companies of all sizes want “certainty, clarity and peace of mind” from the MSPs.

“They want technology that works seamlessly so they can focus on what they do best, whether that’s brokering deals, developing properties, or managing investments,” Lassiter said. “The critical outcomes they seek include increased efficiency, predictable operations, enhanced security, and the ability to scale without disruptions. Above all, they want a partner who understands their business challenges and provides proactive solutions that align with their goals, not just someone who reacts when things go wrong.”

Other interesting findings from the JumpCloud report:

46% of organizations have experienced a cyberattack, 33% of which were due to AI-generated attacks. 55% of IT teams are more concerned about their security posture than they were six months ago. Still, only 30% of admins patch critical systems within hours of them being released.

Artificial intelligence remains a two-edge sword, as 77% admins plan to implement AI-related IT tools within the next year and 42% within six months. Yet 67% of admins say AI is outpacing their ability to secure it, while 37% worry it will take their jobs.