iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
Miles Walker, Kaseya’s channel development manager, told managed service providers (MSPs) at The Channel Company’s XChange March conference in Orlando that they deserve higher profits. His comparison—10% margins for MSPs versus higher figures for other industries—was a statement reported by CRN, not an independently established industry benchmark. Kaseya’s own 2026 survey offers a more mixed picture: some providers are profitable, while others report smaller customer deals, rising costs and difficulty winning new business.
What did the Kaseya executive say?
CRN reported that Walker addressed MSPs at The Channel Company’s XChange March conference in Orlando. He argued that MSPs should earn more and linked that goal to Kaseya’s platform, its acquisition of email-security company Inky, pricing and policy changes, and investment in cybersecurity and AI-powered workflows.
Walker’s reported comparison was: “Legal firms average 40 percent margins. Financial firms, 37 percent. Marketing, 25 percent. MSPs? Ten percent.” He added: “We don’t think that’s good enough. You’re the superheroes of the global economy. You deserve more profit.” CRN’s report does not provide the methodology behind those figures, so they should be understood as Walker’s comparison—not as a verified, apples-to-apples measure of profitability across industries.
Walker also described Kaseya’s intended connection between its offerings and MSP margins: “We think your margins should be higher. That’s why we built this platform. That’s why we brought Inky in. And that’s why we’re investing so heavily in AI-powered workflows.” Those are the vendor’s claims about its strategy; the remarks do not establish that a particular platform or tool will raise an MSP’s margins.
What does Kaseya’s 2026 survey say about MSP profitability?
Kaseya’s April 14, 2026 announcement says its State of the MSP Report surveyed more than 1,000 MSPs worldwide. The findings point to varied conditions, rather than a single margin profile for the sector.
- 10% of respondents said their managed services business was not yet profitable, and 6% said it was breaking even.
- 41% said a typical customer spent at least $25,000 per year in 2025, down from 75% the previous year.
- 30% cited rising labor, tool and infrastructure expenses as a direct constraint on growth.
- 71% named acquiring new customers as their top challenge.
The percentages are findings from a survey published by Kaseya, a vendor to MSPs; they are not independently verified estimates of the entire MSP population. They do, however, illustrate why a broad claim such as “MSPs make 10%” needs context: respondents reported different business conditions, and the CRN article supplies no basis for treating Walker’s figure as a universal average.
Rank #2
- TURN YOUR IDEAS INTO REALITY: Unleash your creativity with this unique planning notebook, consisting of 224 pages divided into 112 Project Planner sheets. Each sheet is designed to step-by-step completion and management of your project.
- EMPOWER YOUR MANAGEMENT: This professional project organizer keeps all project-related information in one place. Stay on top of multiple projects with the convenient project tracker notebook feature, ensuring no detail is missed.
- ARCHIVE YOUR PROJECT GOALS: Stay focused on your projects with dedicated sections for objectives, tasks with deadline, essential supplies and tools notes, space for ideas and sketches illustration, and notes. Experience a simple yet powerful tool to ensure completion and accomplish more with ease.
- EFFICIENT BONUS STATIONARIES: You will receive either set of a ball pen and two cute sticky notes or a set of remind stick pads (randomly). The versatile design can be used for projects at home, work, school, or business to organize, manage a team, and to delegate tasks. This planner is a simple way to make sure you finish what you start and accomplish more.
- HANDLE SINGLE PROJECT IN HAND: Designed with tearable sheets allow you taking any single sheet for more convenient. 7x10 inch sheets are printed on 70 lb premium paper. With advanced printing technology and leather cover, our planner exudes a premium feel and long lasting.
What are MSP customers asking for, and where does AI fit?
In Kaseya’s 2026 survey, 48% of respondents ranked AI and automation among clients’ top needs for 2026, while 53% said they were already using AI to automate ticketing, patching and monitoring. Yet only 13% identified AI and automation as a meaningful source of revenue. The contrast matters: demand and operational use do not automatically translate into profitable new services.
Recommended Free Tools
For an MSP considering AI-enabled tools or services, the survey figures are a signal to assess a specific business case, not proof that adopting a tool will increase revenue. Relevant questions include whether it reduces labor or response time, fits the existing stack, creates a service clients will pay for, and produces outcomes that can be demonstrated. Kaseya executive vice president of channel Dan Tomaszewski said in the release that “the strongest MSPs are tightening their operations, prioritizing efficiency and using data to clearly prove their value to customers.”
Which security services did Walker point to?
Walker’s reported security roadmap included endpoint detection and response (EDR), patch management, managed detection and response (MDR), zero-day protection and advanced email security. These are categories to consider when reviewing client coverage, not a universal checklist that every MSP must adopt in the same configuration.
When evaluating any security platform or service, compare its coverage against client risks and existing tools, the integrations available, the operational workload it adds or removes, contract flexibility, total cost, and measurable client outcomes. Neither Walker’s comments nor the survey establish which vendor or platform is best for a given MSP.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How should MSPs interpret the margin comparison?
Kaseya has separately published a blog saying MSPs average 8% to 12% margins and that legal and financial services firms average 30% to 35%. That is another Kaseya-published comparison, not an independent benchmark, and its values differ from Walker’s figures reported by CRN. The sources do not establish that the comparisons use the same definitions, samples or methodology, so the figures should not be combined.
Do these 3 things before closing this tab:
1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesThe useful takeaway is narrower: Walker was making a vendor executive’s case that MSPs should improve profitability, while Kaseya’s survey identifies customer acquisition, smaller deals and operating expenses as pressures for some respondents. Neither source proves a single typical margin for every MSP or demonstrates that Kaseya’s products will solve those pressures.
Quick Recap
Best Value
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
