Managed security service providers (MSSPs) are facing relentless pressure. Attack surfaces keep growing, cybercriminals are exploiting automation and supply‑chain gaps, and new competitors are flooding the market. Benchmarking against top-performing MSSPs can provide valuable insight into what’s working across the industry. This article explores how leading MSSPs are measuring performance, harnessing data, and making strategic decisions to stay competitive.
Why benchmarking matters for MSSPs
Kevin Nikkhoo
For top managed security service providers, benchmarking is one of the most important ways to measure operational maturity, profitability, service quality, and long-term competitiveness. Reports like the MSSP Alert Top 250 offer a valuable look at how leading providers are responding to industry trends and market pressures.
Kevin Nikkhoo, founder and CEO of XeneX, a Los Angeles, CA-headquartered security provider recognized in the 2025 MSSP Alert 250 List, said the value of the annual report goes far beyond recognition. “It validates us as a leading MSSP and helps us differentiate XeneX from other companies,” he said.
Nikkhoo added that applying to participate in industry research like the MSSP Alert Top 250 is important because it forces self-reflection. It helped XeneX better understand how its competitors position themselves in the market, including “what services they offer, what problems they solve, and what market segment they serve.”
That benchmarking data matters more than ever as the industry becomes increasingly crowded and competitive. The 2025 Top 250 report revealed that participating MSSPs grew revenues from $8.95 billion in 2024 to $14.5 billion in 2025, representing roughly 25% average year-over-year growth per provider. At the same time, 91% of surveyed MSSPs expected to be profitable in 2025, an increase over 2024. Those numbers give providers important context for evaluating their own performance.
In an industry full of marketing claims and crowded messaging, benchmarking gives MSSPs something valuable: objective performance data that supports smarter business decisions.
Just as important, sharing this data helps the industry improve collectively at a time when cybercrime is growing exponentially. Benchmarking creates a way for providers to learn from one another, identify operational best practices, and raise the overall maturity of the managed security market.
Key data points to watch in the Top 250 report
The Top 250 MSSPs Report is an essential benchmarking tool because it provides a clear view of high‑level trends and granular service‑mix data. Several data points stand out:
- Service portfolio trends: In 2025, vulnerability assessment and managed vulnerability services were offered in‑house by 91% of MSSPs and outsourced by another 8%. Security awareness training also remained prevalent, with 76% offering it in‑house and 21% partnering. The report highlights growth in virtual/fractional CISO services, compliance reporting, SOC‑as‑a‑service, cloud security posture management, and breach‑and‑attack simulation.
- Threat landscape: The survey asks respondents which attack types they mitigated. Email phishing, vulnerabilities, and ransomware remained the top three attack vectors. The report notes that cyberattacks in 2025 featured sophisticated AI‑driven phishing, supply‑chain ransomware, and high‑profile breaches exploiting patching gaps. MSSPs can use this data to prioritize investments in anti‑phishing technology, vulnerability management, and ransomware readiness.
- Vendor influence: Each year, MSSP Alert asks survey respondents about the vendors that enable their success. The 2025 survey revealed a diverse vendor ecosystem. Respondents mentioned hundreds of hardware, software, cloud, and distribution vendors. Still, Microsoft, Stellar Cyber, and SentinelOne emerged as the most influential platforms supporting MSSP success. Stellar Cyber, in particular, saw significant growth over the years, jumping from 10% in 2023 to 24% in 2025. MSSPs can use this data to benchmark their own technology stack and evaluate the risks of overreliance on a single vendor versus managing too many disconnected tools.
- Delivery models: MSSP Alert tracks whether providers operate their own security operations centers (SOCs) or partner with third parties. In 2025, 78% ran SOCs entirely in-house, up from 72% the previous year. Only 4% completely outsourced their SOC in 2025—a number that declined from 8% in 2023. The data suggests that mature providers increasingly see SOC ownership as strategic, though smaller MSSPs continue to leverage SOC‑as‑a‑service offerings.
Raffaele Mautone, founder and CEO of Judy Security, a Detroit, Michigan-headquartered security provider that also made the Top 250 List, weighed in. “When it comes to industry reports, we look for efficiency and scalability signals such as revenue per technician, margin by service line, automation rates, retention, and growth velocity. The key question is whether growth is scaling through software leverage or linear headcount expansion,” he said.
KPIs MSSPs should focus on
Raffaele Mautone
Benchmarking only works if MSSPs are tracking the right KPIs. The strongest providers tend to focus on a few core areas: growth, operational efficiency, customer outcomes, and service maturity.
On the business side, recurring revenue growth, profitability, customer retention, and net revenue retention remain critical indicators of long-term health. With 9 out of 10 of Top 250 survey participants expecting to be profitable, strong margins are increasingly becoming a baseline expectation rather than a differentiator.
“In my view, the most important KPIs are MTTD and MTTR, revenue per engineer, gross margin, customer retention, and automation coverage across alerting and remediation. High performing MSSPs optimize for speed, consistency, and leverage rather than just volume,” Mautone noted.
Top providers are also measuring security outcomes, not just service delivery. That includes vulnerability remediation timelines, phishing resilience improvements, and adoption of higher-value advisory services like virtual CISO and compliance support.
When asked which internal benchmarks the XeneX team tracks that can significantly change the way the business operates, Nikkhoo pointed to the quality of service delivery and metrics around incident detection and threat elimination. Clearly defining and tracking those numbers makes a world of difference, Nikkhoo said.
For security-focused IT providers, tracking these metrics can help validate investments in automation, SOC expansion, and advanced detection and response services while also identifying areas where operational improvements are needed.
Capabilities that distinguish top MSSPs
Standard services, like endpoint detection, are table stakes in today’s security environment. Clients expect, and are ready to pay for, more comprehensive security. The MSSPs pulling ahead are the ones building operational maturity and leaning into more advanced security technology.
One major trend is the move toward more advanced, in-house SOC operations. The report found that 78% of Top 250 MSSPs now operate fully in-house SOCs, up from 72% the previous year. But ownership alone is not the differentiator. Leading providers are investing heavily in automation, threat intelligence integration, behavior analytics, and AI-assisted detection to improve speed and reduce analyst fatigue.
But MSSPs should be careful not to treat tool expansion as a strategy, Mautone said. “More tooling often creates operational friction rather than better security outcomes. The winners are consolidating around intelligence layers that reduce noise and automate action,” he noted.
Top MSSPs are also expanding beyond traditional monitoring into broader security and advisory services. Vulnerability management, security awareness training, virtual CISO services, compliance support, and cloud security posture management are all becoming increasingly important as customers look for strategic guidance alongside threat detection.
Another differentiator is operational efficiency. The strongest providers closely track onboarding speed, alert reduction through automation, analyst workload, customer retention, and service adoption. For MSSPs, internal benchmarking around automation and onboarding can help improve response times, reduce operational overhead, and strengthen customer retention.
However, to improve operational efficiency, MSSPs shouldn’t ignore the human element, Nikkhoo said. “If an MSSP wants to separate itself, start with people. Build up industry and company certifications, offer continuous training that is documented by skillset, roles, and responsibilities.”
Best practices for benchmarking
The following practices can enable MSSPs to gather actionable data and compare their performance against peers:
- Develop a data dictionary and a single source of truth. Define key metrics and ensure that everyone on your team aligns around those definitions. Use centralized dashboards that pull from ticketing systems, billing platforms, and monitoring tools.
- Segment metrics by service, customer size, and industry. High churn in a particular vertical or slower growth in a new service line might be hard to pinpoint if you only have aggregate data. Segment data to identify targeted improvements.
- Automate data collection and reporting. Manual data aggregation is error‑prone. Invest in business intelligence tools that integrate with ticketing, SIEM, and billing systems. Automate the generation of KPI dashboards and trend reports. This ensures that benchmarking is not a once‑a‑year exercise but a continuous practice.
- Align benchmarks with strategic goals. Use benchmarks to drive strategic decisions. For example, if the report shows 78% of MSSPs have in‑house SOCs, evaluate whether SOC ownership aligns with your long‑term positioning. If not, focus on building strong partnerships and articulating the benefits of your model.
- Communicate benchmarks internally. Share benchmarking results with employees to create a culture of transparency and continuous improvement. Highlight achievements, identify opportunities, and set goals.
- Benchmark regularly against industry reports. Read industry reports like the MSSP Alert 250 as soon as they publish. Apply to participate in the MSSP Alert Top 250 List each year. Attend this year’s MSSP Alert Live Virtual Conference and similar events to get real-world insights and best practices.
“The strongest MSSPs benchmark themselves not only against peers but against their own ability to scale service delivery without increasing operational complexity. And more importantly, happy customers who find value in what you’re doing with and for them,” Mautone said.
The takeaway
The Top 250 MSSP report is a valuable benchmarking resource for the managed security industry. It helps security providers better understand market trends, profitability expectations, and evolving service offerings. By participating in industry surveys, tracking meaningful KPIs, and making strategic investments, MSSPs can position themselves for long-term growth and success.
Benchmarking is about taking a strategic approach to improving security and operations. Only the MSSPs that embrace rigorous benchmarking and strategic execution will thrive in the years ahead.
Jonathan Browning is executive director of content and engagement for The ChannelPro Network. He has been a leader in the IT channel for close to a decade. He’s an avid fan and early adopter of technology. He believes that the Managed Services industry is the most important driver of economic growth and human innovation in today’s world.
Images: GraphicsWorld — stock.adobe.com, Kevin Nikkhoo/LinkedIn
