For many MSPs, cybersecurity is tough to scale. Security assessments are often manual and client conversations are a struggle. Many are still trying to determine how security fits into broader AI initiatives.
CloudCapsule was built to address those issues. Founded by channel veterans, CloudCapsule offers an automated security assessment and Microsoft 365 management platform for MSPs.
“What we really provide is insight into gaps in security posture that they simply don’t see right now,” Daniel Johnson, global channel chief of CloudCapsule, told ChannelPro. “It becomes their north star of where to take that engagement with clients. That makes it very clear what needs to be addressed, what the business outcomes are and what kind of growth it can really unlock.”
The company’s origins were sparked by firsthand experience. Before launching CloudCapsule, Ross was conducting Microsoft security assessments manually while helping an MSP scale its operations. That process proved difficult to manage.
“We had around 2,000 customers that we were trying to scale security and compliance out to,” CloudCapsule CEO and co-founder Nick Ross told ChannelPro. “It was a nonlinear process. We looked at that and said, ‘I can automate the entire assessment process and give MSPs a management platform.’”
Helping MSPs scale security
Many MSPs still struggle to perform security assessments or build a repeatable strategy.
“A lot of where the pain exists today is around how you scale your practice with Microsoft management in mind,” Ross said. “They are either doing this manually, looking for third-party tools or not doing it at all. They’re underserving their customers, to a certain degree.”
Identifying security gaps is only part of the challenge. MSPs also need a way to explain those risks to customers in business terms.
One of CloudCapsule’s biggest surprises was discovering that its reports became a sales and consulting tool.
Nick Ross
“We actually demystify that lexicon of Microsoft-speak and security-speak down to what business owners and stakeholders would actually care about out of the box,” explained Ross, who also runs the popular YouTube channel T-Minus365. “By creating this client-facing reporting, we actually created a whole sales enablement arm for the businesses and drove a lot of powerful conversations.”
The company also sees an opportunity to help MSPs mature their security practices and compete for larger customers. Ross said many partners want to align with established frameworks such as CIS Controls but often find them difficult to implement. Making those frameworks easier to adopt can help MSPs elevate their service offerings and pursue bigger clients.
CloudCapsule maps security findings to established frameworks. This helps simplify Microsoft security management for MSPs that may lack deep internal expertise. The company also sees a large opportunity among partners that have not yet adopted formal security frameworks.
“We underestimated the number of MSPs who weren’t doing this yet in their practice,” Ross admitted. “They are using it now to elevate their service offering as a whole and move upmarket accordingly as well.”
Turning security into customer conversations
According to the CloudCapsule executives, AI is giving MSPs a new opportunity to engage customers on cybersecurity.
Daniel Johnson
As businesses rush to evaluate tools like Microsoft Copilot, many are discovering that they first must address security and governance gaps. That creates an opening for MSPs to move beyond technical support to become strategic advisers.
“Everybody’s kind of trying to figure out what their AI strategy is, but at some point it starts with security,” Johnson emphasized.
Organizations that want to take advantage of AI first need to understand and secure their data environments, he added. That conversation can help MSPs connect security investments to business growth rather than simply risk reduction.
As MSPs take on more advisory responsibilities, CloudCapsule is evolving its platform to help partners guide customers through security, governance and AI readiness discussions. Ross said providers should avoid acting like an AI gatekeeper.
“Let [your clients] use it freely, but be there to guide them through that journey. Do it securely as well,” Ross said. “Give them the guardrails even if they’re not using Copilot, but Claude or ChatGPT.”
That focus is shaping the company’s product roadmap. CloudCapsule recently expanded beyond assessments into policy management and remediation. It is also developing capabilities focused on data governance, shadow AI and AI readiness as MSPs help customers prepare for broader AI adoption.
More than a software vendor
CloudCapsule aims to distinguish itself through partner enablement. Johnson said the company works with MSPs on customer review processes, sales motions and security best practices, rather than simply providing another software subscription.
“Wherever they are in their journey, we try to help them take that next step,” Johnson said. “That partner enablement piece can really be a big differentiator from just selling a subscription to a tool.”
Anjali Fluker is managing editor of The ChannelPro Network, where she covers news, trends, and best practices for the MSP community. She specializes in telling the stories that matter to IT providers serving the SMB market. When she’s not reporting on the latest in managed services, she’s connecting with channel pros at industry events across the country.
Images: Anjali Fluker/ChannelPro, CloudCapsule
