Almost a third of managed service providers (MSPs) have suffered avoidable client data loss in Microsoft 365 due to inadequate backups, according to Syncro’s 2025 Industry Survey on Microsoft 365 Management.
The study says 60% of MSPs now run Microsoft 365 for more than 80% of their clients, yet many still grapple with fragmented tools and reactive security. Some 40% cited operational complexity as their biggest challenge, while 28% only review security baselines after incidents.
“Microsoft 365 is the backbone of business operations and MSPs are under enormous pressure to deliver protection that’s both effective and scalable,” said Syncro CEO Michael George. Matt Lee, senior director of security and compliance at Pax8, added that MSPs “have an opportunity to shift toward proactive, automated protection.”
The report urges MSPs to unify management platforms, close backup gaps and automate baseline security to strengthen protection and efficiency.
