Staying Competitive: Why MDR Is Now Essential for MSPs

In today’s cybersecurity industry, Managed Service Providers (MSPs) who do not adapt risk falling behind.

In the recent episode of The Security Strategist podcast, host Richard Stiennon, Chief Research Analyst at IT-Harvest, talks with Stefanie Hammond, Head Nerd at N-able, and Jim Waggoner, Vice President of Product Management at N-able. They discuss how MSPs can tackle rising threats, bridge the talent gap, and maintain profitability in a quickly evolving market.

The speakers particularly explore the critical need for MSPs to adopt Managed Detection and Response (MDR) services, the importance of internal security investments, and how AI can enhance efficiency. The conversation also touches on compliance challenges and future trends in pricing strategies for MSPs, emphasising the need for continuous adaptation in a rapidly changing threat environment.

When Stiennon asked, “How quickly must an MSP change their entire model to a managed detection and response offering to stay competitive?” Hammond's answer was straightforward: “If an MSP hasn’t done that yet, I don’t know how much longer they can wait.”

This sets the stage for the podcast.

MDR Is No Longer Optional but Critical for MSPs

For MSPs serving clients in tightly regulated fields like finance, healthcare, government, or education, Managed Detection and Response (MDR) is a necessity.

“Organisations in those sectors face a greater risk,” says Hammond. “Managed Service Providers (MSPs) need to incorporate MDR into their security offerings and make it standard for their customers to stay competitive.”

However, Hammond cautions against selling MDR as a standalone solution.“We shouldn’t sell any security tools as a separate service.” Instead, she suggests packaging MDR with other prevention, detection, and recovery options—like backup and data protection—to create a layered cybersecurity package.

Agreeing, Waggoner steps in and describes this as a natural growth process for MSPs: “It becomes a maturity lifecycle. You start by managing hardware and software, move on to daily security, and eventually cover full detection and response. If MSPs don’t want to develop that in-house, N-able can assist—we can co-manage it or handle it for them as they grow.”

MSPs for Smarter Security and AI-Backed Efficiency

The speakers also talked about howtalked how AI and automation are changing cybersecurity, not just for spotting threats but also for improving operations and driving sales. “We automatically handle 90 per cent of security alerts using AI,” expressed Waggoner.

“If you’re not automating, you’re falling behind,” the Vice President of Product Management at N-able added.

For Hammond, AI is equally beneficial in marketing and communication. She recommends MSPs not to manage sales and marketing on their own but to use AI to support themselves.

Both experts agree that compliance, identity protection, and education are essential parts of a resilient security framework. “It always comes down to identity,” Waggoner emphasises. “Use unique logins, change passwords regularly, and set up MFA—those basics prevent most attacks.”

As for the future of MSPs, Hammond envisions a shift beyond just technology.

“Don’t stick with the status quo. The market keeps evolving, and if you fail to update your pricing, services, and messaging, you’ll risk becoming obsolete within five years.”

Listen to the full episode to discover how N-able’s experts are assisting MSPs in reshaping their business models, adopting MDR, and turning security challenges into new opportunities.

Stream now on your favourite podcast platform or visit n-able.com.