5 predictions channel partners need to know for 2025

Barracuda’s Partner Success Program is designed around the concept of shared success, so we want to help our channel partners set themselves up for a successful 2025. One way we’re doing this is by looking ahead to the key developments and trends channel partners need to be aware of this year.

To help our partners prepare for 2025, we recently spoke to Greg Saenz, VP of Channels at Barracuda, to get his insights on what channel partners and MSPs should be thinking about to succeed in the year ahead.

Prediction #1: AI will create opportunities for MSPs to monetize services around cyber hygiene.

Organizations that don’t maintain effective cyber hygiene when protecting applications and securing their data will face significant risks when utilizing AI-enabled applications. MSPs play a crucial role in educating their customers about these risks.

As MSPs look to monetize their AI offerings, they will find new opportunities to grow their businesses by providing services focused on cyber hygiene and cyber readiness. First, though, MSPS must ensure their own house is in order. They must strengthen their internal processes and implement governance and compliance measures. This not only protects their own business but also helps to safeguard their customers. As cyber hygiene becomes increasingly important, the automation available through managed extended detection and response (XDR) and 24/7 security operations center (SOC) solutions can help MSPs protect themselves and their customers, while reducing the impact on their internal resources.

Cyber insurance is also an essential component of any go-to-market strategy around AI, as qualification is closely tied to meeting certain compliance with governance requirements, which can help MSPs determine if their customers are prepared to adopt and secure AI-enabled applications.

Prediction #2: MSPs must adopt a “resilience” mindset.

AI and quantum computing can strengthen an organization’s defenses, yet at the same time, malicious actors will continue to exploit these technologies for their own gain. The rapid emergence of AI has revealed new vulnerabilities, presenting ongoing challenges for cybersecurity professionals.

As the landscape continues to evolve, organizations must shift from a prevention-focused mindset to one prioritizing resilience. This means implementing strong preventive measures while preparing for potential breaches through investments in response and recovery strategies. Resilient enterprises create detailed response plans, conduct regular drills, and ensure their systems are “secure by design.” Building a strong cybersecurity culture and promoting cyber resiliency also requires ongoing preparation for potential cyberattacks while implementing clear communication protocols.

In the coming year, MSPs will play an increasingly important role in enhancing their customers' cyber resilience. By leveraging resources like the National Institute of Standards and Technology (NIST) 2.0 Cybersecurity Framework (CSF), MSPs can guide their customers through multiple facets of cybersecurity, including risk management, privacy, artificial intelligence (AI), and secure software design, empowering them to be better prepared to address cyberthreats and recover more quickly following a cyberattack.

Prediction #3: MSPs will continue to reduce the number of vendors in their solution stacks.

Vendor consolidation will continue in 2025, with more MSPs intentionally reducing the number of vendors they partner with. We will see MSPs focusing on going deeper with a smaller subset of partners, necessitating selling a more comprehensive range of offerings from each vendor. This approach also requires more technical expertise and the ability to deliver services across a limited selection of vendors. By utilizing the resources provided by their vendor partners, MSPs can gain the knowledge and expertise needed to grow their businesses and effectively support their customers while working with fewer vendor partners.

Prediction #4: Digital channels and local engagement will play an important role in generating leads.

Heightened competition from startups and new entrants in the MSP sector, the expansion of public cloud marketplaces, and the growing influence of private equity, leading to the creation of larger MSPs, are driving MSPs to implement more proactive lead generation strategies.

Traditional marketing methods, such as relying on vendor support and routine email campaigns, are becoming less impactful, resulting in fewer qualified leads for the MSP. This has prompted MSPs to explore innovative strategies and adopt a more structured approach to lead generation, which relies less on external MDF funding and more on internal business development resources. Notably, recent research from Barracuda has found that 3 out of 10 partners are investing in hiring more business development representatives (BDRs). These expanded BDR teams to take on more responsibility for lead generation, facilitating a transition towards more self-sufficient practices that prioritize digital channels and local engagement.

Prediction #5: Technical enablement will become more important to partner success.

In a technology landscape characterized by increasing complexity and a rising number of bad actors targeting resource-constrained businesses, MSPs are seeking new tools and automation solutions to enhance their productivity. As such, there is a growing emphasis on partner technical enablement. Barracuda is embracing this trend by significantly simplifying access to essential tools, recognition, and rewards for partners worldwide. In October 2024, we launched the Barracuda Partner Sales Engineering Community and strategically invested in empowering our partners to expand their sales of our platform and solutions, particularly in the rapidly evolving area of extended detection and response (XDR).

As a testament to Barracuda’s commitment to partner enablement, we will continue refreshing our certifications, making it easier for partners to access the tools and resources they need to protect their customers and grow their businesses. These investments underscore our dedication to partner success, especially as MSPs continue to broaden their offerings to include managed and co-managed services. Furthermore, our collaborations with AWS and recent integration with the Infinigate Cloud Marketplace provide partners with essential resources to meet market demand. Building capacity within our security operations center (SOC) and XDR solutions will remain a top priority, as this area presents significant opportunities for investment and growth in the coming year.