The managed services industry is experiencing a seismic shift as new European Union regulations fundamentally change how MSPs operate. With NIS2 already in effect and DORA launching this month, service providers can no longer treat compliance as an afterthought. The question isn’t whether these regulations will impact your MSP—it’s whether you’ll emerge stronger or struggle to survive.
The New Regulatory Reality
The EU is introducing new cybersecurity regulations in late 2024 and 2025. The Network and Information Security Directive (NIS2) takes effect in October 2024, requiring businesses to strengthen threat management and incident reporting, while the Digital Operational Resilience Act (DORA), starting January 2025, will look to enhance IT security for financial firms.
But here’s what many MSPs are missing: these aren’t just regulatory checkboxes to tick. They represent a fundamental evolution toward what industry experts are calling “MSP 3.0″—a co-managed, cloud-first approach that includes not only technology and integrated cybersecurity but also requires profound knowledge of compliance, regulations, and sector-specific expertise.
Beyond Minimum Compliance: The Strategic Advantage
While these regulations are necessary, there’s a risk of managed service providers (MSPs) treating compliance as a mere formality. Meeting minimum requirements is easy, but MSPs should avoid this approach. The winners in 2025 will be those who view compliance as a competitive differentiator rather than a burden.
Consider this: while your competitors scramble to meet basic requirements, forward-thinking MSPs are positioning themselves as compliance experts for specific verticals. Financial services clients need DORA expertise. Healthcare organizations require HIPAA alignment. Critical infrastructure companies need NIS2 compliance.
