Tool sprawl doesn’t just clutter dashboards and add complexity — it quietly erodes MSP margins. Today, 59% of security leaders cited tool maintenance as their primary source of inefficiency, while 78% said their security tools were dispersed and disconnected, according to the “Cisco Global State of Security Report 2025.” For MSPs operating on tight SLAs, that inefficiency manifests as unbillable labor, slower client onboarding and increased operational friction — exactly the sort of hidden costs that build up faster than revenue can keep up.
Why tool sprawl is a margin problem
In managed services, every extra tool increases cost-to-deliver faster than contract. This happens for several reasons: First, managing that extra complexity increases operational costs. Second, complexity often translates into heightened security risk — showcased by the majority of attacks (60%) being identity-based. And third, managing multiple vendors, rather than consolidating as much of your tech stack as possible, can increase licensing costs and procurement overhead.
“We’re seeing globally increasing cost and price pressure as a result of new technology solutions MSPs are offering,” said Ryan Franks, senior director, Americas and global strategic security partners at Cisco. “You always want to provide the best outcomes for your customers, but as you keep adding new tools, you end up with increased training costs and inefficient workflows, and you have a bunch of different bills coming in from different vendors.”
Operational drag shows up across onboarding, policy management, monthly billing and client support. But perhaps the greatest risk to revenue is the increased security risk: Excessive tool sprawl can lead to increased risk exposure because of gaps emerging between systems. And as cyber-related insurance claims continue to rise — 31% year over year from 2024 to 2025 — so do premiums.
Furthermore, using several identity-management tools can lead to fragmented visibility, inconsistent security policies and a higher risk of human error. In the last year alone, 81% of U.S. small businesses faced a security breach, and they’re counting on their MSPs to help them manage that risk, according to the “Identity Theft Resource Center 2025 Business Impact Report.” And if they can’t, the risk of churn and reputational damage can skyrocket.
Strategy matters as much as the product
MSP profitability isn’t just about features — it’s about how frictionless critical business operations are. “The strategy you have matters just as much as the product you offer,” Franks said. “MSPs need to be able to deploy at will, while getting a predictable bill at the end of the month, and that’s why flexible license scaling is key to any partner program. And then, it has to be easy — easy to sign contracts, easy to access the management console and easy to provide an incredible customer experience through the life of their contract.”
This need is why Cisco designed the Secure MSP Center program specifically for MSPs, making it easy for partners to order and deploy SaaS security products.
The goal is to continue delivering the outcomes customers expect, at a competitive price, but in a way that’s profitable. For instance, usage-based billing allows MSPs to deploy as needed, true-up at month end, and reduce license anxiety and the risk of overprovisioning. Moreover, this helps MSPs price their services confidently.
For that to happen, tool consolidation should become a top priority. “If you can narrow the number of vendors you work with, you can greatly enhance operational efficiency,” Franks said. “That requires delivering integrated solutions that span all critical functions like observability and identity security. By simplifying operations, you reduce operational costs and enhance customer value.”
Turning rollout into a repeatable, one-hour process
The most effective security stack is also the one that’s easiest to deploy, manage and use. While ease of use might not sound like a priority for something as important as security, it increases the effectiveness of the whole system in several ways. With repeatable steps, templates and guardrails, MSPs can simplify deployment, eliminate blind spots and reduce the risk of end users seeking risky workarounds.
“MSPs need a unified, cloud-native identity-security platform. This has to have automated onboarding, role-based access and preconfigured best practices,” Franks said. “And then, post-rollout, they need access to a centralized management console and automated, repeatable tasks so they can scale with a unified customer view. That’s what allows MSPs to deliver great outcomes, while increasing customer lifetime value.”
After all, identity-security challenges rarely live in one place. For example, a single login problem might force support teams to bounce between tools, turning an otherwise five-minute fix into a half-hour investigation. Those minutes add up fast when you’re managing security across dozens or hundreds of clients and fragmented technology stacks. The result is more support tickets and increased operational drag that threatens profitability.
That’s where the “one-hour rollout” idea becomes mission-critical. With the right infrastructure, MSPs can turn identity security into a repeatable process that eases the burden on support teams by reducing ticket volume without requiring an increase in head count. This also means happier customers, thanks to faster onboarding and improved support quality and responsiveness.
As identity becomes a top vector for attacks and MSPs tackle so many blind spots across their identity-security stacks, it’s never been more important to consolidate and automate, instead of endlessly adding more tech. That’s not just better for security — but also for revenue.
Experience better protection in just one hour with the Secure MSP Center program. Secure MSP Center offers scalable, easy-to-manage security with quick setup, flexible pay-as-you-go pricing and a low total cost of ownership — helping organizations protect their clients efficiently while maximizing ROI. Experience better protection in just one hour with Cisco’s Secure MSP Center program.
