Key Takeaways
- Internal IT teams are overwhelmed by the speed, scale, and AI‑enhanced sophistication of modern cyber threats, creating a capacity gap rather than a pure skills shortage.
- 91 % of organizations fear AI‑driven attacks, and 75 % suffered at least one cyber incident in the past year.
- Over half (54 %) lack the ability to provide continuous 24/7 monitoring and response, while 67 % need extra help to meet rising compliance demands.
- Nearly half (48 %) already rely on managed service providers (MSPs) to supplement internal teams, signalling a shift toward MSPs as primary cybersecurity partners.
- Outcome‑based expectations are replacing traditional service metrics; 44 % are willing to pay a premium for AI‑powered detection and response that delivers measurable results.
- Although regional delivery models vary (e.g., higher MSP reliance in the U.S. and France, value‑added resellers in Mexico, consulting‑led approaches in Canada), global priorities are converging on 24/7 monitoring, faster response, AI capabilities, and compliance support.
- Cybersecurity budgets are expected to rise for 75 % of organizations over the next two years, reflecting its transition from a periodic expense to a continuous, mission‑critical operational requirement.
- The study, based on 842 IT and cybersecurity leaders across 20 countries, underscores a fundamental industry shift: security is moving from fragmented, reactive tools to integrated, always‑on services delivered by MSPs.
Overview of Research Findings
The WatchGuard Technologies survey of nearly 1,000 IT and cybersecurity professionals reveals a stark reality: despite confidence in staffing levels, most organizations feel outmatched by today’s threat landscape. The study shows that 91 % of respondents are concerned about AI‑driven cyberattacks, and three‑quarters experienced at least one security incident in the last twelve months. These figures highlight a growing sense of vulnerability that persists even as companies invest in personnel and tools.
The Capacity Gap Inside Internal Teams
Internal IT departments are hitting operational limits not because they lack awareness, but because the volume and velocity of threats exceed what they can sustainably manage. The research indicates that 54 % of organizations admit they cannot deliver true 24/7 monitoring and response, while 67 % say they need additional support to keep pace with evolving compliance requirements. This “capacity gap” forces businesses to look beyond their own walls for continuous protection.
Reliance on Managed Service Providers Grows
Nearly half (48 %) of surveyed organizations already engage MSPs to augment internal capabilities, a clear sign that MSPs are transitioning from ancillary support to central cybersecurity partners. Joe Smolarski, CEO of WatchGuard Technologies, characterizes this shift as a move from a skills shortage to a capacity shortage: firms understand the risks but lack the bandwidth to monitor, detect, and respond at the speed modern attacks demand.
AI’s Dual Role in Threats and Defense
Artificial intelligence is accelerating both sides of the cybersecurity equation. On the threat side, AI enables attackers to craft more convincing phishing lures, automate vulnerability discovery, and adapt malware in real time. On the defensive side, 44 % of respondents say they are willing to pay a premium for AI‑powered detection and response solutions that promise measurable outcomes. This willingness reflects an expectation that security providers must deliver not just alerts, but tangible risk reduction.
Outcome‑Based Evaluation of Security Partners
Traditional metrics such as uptime and ticket resolution are giving way to outcome‑focused criteria. Organizations now judge MSPs on their ability to reduce breach likelihood, shorten dwell time, and provide clear compliance evidence. Nearly half of the respondents view their provider as a strategic advisor or proactive partner, underscoring the evolving role of MSPs from reactive troubleshooters to trusted security strategists.
Regional Variations Converging on Common Priorities
While delivery models differ—U.S. and French firms lean heavily on MSPs, Mexican organizations often rely on value‑added resellers, and Canadian companies favor consulting‑led approaches—the underlying challenges are increasingly universal. Across all regions, priorities align around continuous monitoring, rapid incident response, AI‑enhanced capabilities, and robust compliance support. This convergence suggests a global market moving toward similar service expectations despite local nuances in how those services are sourced.
Cybersecurity Spending Accelerates Amid Uncertainty
Even amid broader economic headwinds, cybersecurity budgets are poised to grow. Seventy‑five percent of organizations anticipate increased spending over the next two years, with funds directed toward services that offer continuous protection and quantifiable results. This trend signals a shift from viewing security as a periodic project to treating it as an ongoing operational necessity, akin to utilities or payroll.
A Defining Shift for the Cybersecurity Industry
The collective findings point to a fundamental transformation: security is evolving from a collection of point‑tools and reactive tactics into integrated, always‑on services delivered by specialist partners. For MSPs, this presents a substantial opportunity to expand from general IT support to full‑scale cybersecurity providers capable of offering the speed, intelligence, and scale that modern enterprises require. Those who can bundle AI‑driven analytics, 24/7 SOC capabilities, and outcome‑based reporting will be best positioned to capture this growing demand.
Methodology
The data derive from an independent online survey of 842 IT and cybersecurity professionals at organizations employing between two and 2,499 staff members. Conducted in April 2026 across twenty countries—including the United States, Canada, Mexico, Germany, the United Kingdom, France, Australia, Colombia, and Argentina—the results were weighted to reflect global economic distribution, ensuring a balanced view of regional perspectives.
About WatchGuard Technologies
WatchGuard Technologies, Inc. is a global leader in unified cybersecurity purpose‑built for managed service providers. With over three decades of innovation, WatchGuard’s AI‑powered Unified Security Platform® delivers Zero Trust‑aligned network, endpoint, and identity protection in a single, integrated solution. Trusted by more than 25,000 MSPs safeguarding over 1.5 million customers worldwide, the company enables partners to reduce complexity, improve security outcomes, and scale their businesses efficiently. Further information is available at WatchGuard.com, on LinkedIn, or via the WatchGuard CyberSecurity Hub for real‑time threat intelligence.