Sophos’ 2026 MSP Perspectives Report reveals how demand for cybersecurity leadership, maturing compliance offerings, and the battle for scale are all shaping the managed services market.
According to the new report, Managed Service Providers (MSPs) estimate that almost half of their customers (46%) look to them for CISO-level leadership. Most expect demand for CISO services to increase over the next 12 months.
The report also exposes the challenges facing MSPs as they respond to this demand. Compliance practices remain incomplete, service delivery is fragmented across different tools, and much of their reporting process still requires manual effort. These difficulties affect their ability to meet the needs of the organizations turning to them and other channel partners to help them understand risk, prioritize security investment, demonstrate compliance, and verify their security posture. Customers expect their partners to simplify this complexity, rather than grapple with the same fragmented tools, data, and processes. Providers that can streamline delivery and translate operational activity into strategic value will stand out from the competition.
MSPs are no longer just technology providers
The need for MSPs to deliver technology deployment and day-to-day support is now equaled by customer demand to provide a deeper subset of strategic consultancy services. From assessing the performance of controls to managing compliance programs, MSPs are now the de facto CISO for many of their customers, and demand is only expected to increase:
- On average, 46% of customers look to their MSP to act as CISO.
- 84% of MSPs expect demand for CISO services to increase over the next 12 months.
This expansion creates a potential route for MSPs to build more sophisticated, higher-value customer relationships. It also changes the basis of competition within the MSP market. As cybersecurity leadership and compliance consultancy become more widely available, differentiation will depend on the speed, depth, quality, and consistency of their deployment.
Customers will need to look beyond the number of services an MSP offers. The more useful consideration is whether those services create a clear and continuous view of cyber risk, tool effectiveness, and overall progress.
Compliance is an investment driver and a gateway to growth
Compliance is now embedded within the MSP value proposition. According to the report, nearly all MSPs offer at least one compliance service, with many managing their customers’ full compliance programs. Others plan to introduce full program management, suggesting that this capability is rapidly becoming mainstream.
Broad provision is not necessarily indicative of a complete compliance practice, however. Significant opportunity remains for MSPs to operationalize compliance, using it to deliver strategic value, as well as helping customers meet evolving regulatory requirements.
- 99% of MSPs provide some level of compliance service.
- Only 6% provide all seven of the services analyzed in the report.
With compliance influencing 50% of customer purchasing decisions, this maturity gap matters. Managed and scaled effectively, compliance services can become the starting point for deeper conversations around risk reduction, technology investment, and security program development.
Delivery remains the limiting factor
Across the board, MSPs are utilizing platforms, tools, and automation to provide CISO-style services and compliance for customers, yet their underlying delivery model remains fragmented. Without a single, unified system to consolidate activity, most rely on multiple technologies and incorporate manual processes even when utilizing automation.
- 53% of MSPs use multiple tools or platforms to centrally manage cybersecurity compliance or CISO-type activities.
- Just 31% can fully automate reports at speed.
- 55% still require some manual effort to consolidate activities.
This presents a practical challenge as demand grows. Each additional customer, framework, assessment, and reporting requirement necessitates more resources and more governance. MSPs that increase their service volume without addressing that complexity risk placing pressure on already stretched teams. It also creates a conundrum for MSPs: how will they help customers overcome fragmented security and compliance activity while contending with the same challenges within their own environments?
The untapped opportunity: unification and scale
Meeting the next phase of demand will depend on MSPs bringing benchmarking, assessment, reporting, and program development into a coherent, consolidated model that removes complexity and demonstrates value. AI will play an important role here, particularly across repeatable and data-intensive work, but only if it measurably simplifies delivery rather than just adding another disconnected control point.
81% of MSPs say they would save more than 30% of their team's time by using a single, unified platform to handle customer security posture, compliance management, and reporting activities. Across all respondents in the report, the average expected time saving is 53%.
The findings of the MSP Perspectives 2026 Report reinforce the need for a more unified approach to cyber program management. Sophos CISO Advantage was developed to address that need, bringing assessment, analysis, reporting, maturity benchmarking, and roadmapping into a single AI-native system. It helps customers understand risk, focus their spend, and demonstrate value, while giving MSPs a streamlined and scalable way to deliver and monetize the cybersecurity leadership they already provide. Each assessment identifies security gaps; each gap is an opportunity to demonstrate further value.
The cybersecurity market is at an important point in its evolution. MSPs have already stepped into the role of security leader. The question now is how they will meet rising demand and complexity without compromising efficiency, profitability, or the quality of service their customers need. Download the full 2026 MSP Perspectives Report to learn more.