N-able's ADaaS: A Game-Changer in Cyber Resilience for MSPs and Midmarket

The cybersecurity landscape for managed service providers (MSPs) and midmarket businesses is undergoing a seismic shift. As cyber threats grow in sophistication and frequency, the demand for proactive, AI-driven security solutions is surging. N-able's Anomaly Detection as a Service (ADaaS), integrated into its Cove Data Protection platform, is emerging as a pivotal tool for MSPs seeking to dominate this $610 billion managed services market by 2025 N-able’s John Pagliuca on Key Trends Driving MSP Growth in 2025^[3]. With 90% of surveyed MSPs anticipating growth in cybersecurity managed services sales this year—up from 80% in 2024—N-able's ADaaS is not just a product but a strategic lever for competitive differentiation N-able’s Second Annual MSP Horizons Report Shows Significant Growth Opportunity for Global MSPs with Cybersecurity Leading the Way^[1].

The ADaaS Edge: Proactive Defense in a Reactive World

Traditional cybersecurity models rely on reactive measures, but N-able's ADaaS redefines the paradigm by embedding detection and response into the data protection lifecycle. Features like Honeypots—always-on mechanisms that mimic vulnerable systems to lure attackers—allow early identification of brute-force attacks and unauthorized access attempts before they compromise production systems or backups N-able’s Second Annual MSP Horizons Report Shows Significant Growth Opportunity for Global MSPs with Cybersecurity Leading the Way^[1]. This proactive approach transforms backup from a passive safety net into an active defense layer, offering midmarket organizations enterprise-grade protection without the overhead of dedicated security teams.

For MSPs, this translates to a unique value proposition: the ability to deliver cyber resiliency as a unified service. By integrating ADaaS with monitoring, management, and security operations, N-able enables MSPs to address threats across the entire attack lifecycle—protection, detection, response, and recovery N-able Wants MSPs to 'Pick Their Cybersecurity Journey'^[2]. This holistic strategy aligns with the industry's growing emphasis on compliance and risk management, positioning ADaaS as a revenue driver and a trust-building tool for clients N-able’s Second Annual MSP Horizons Report Shows Significant Growth Opportunity for Global MSPs with Cybersecurity Leading the Way^[1].

Strategic Competitive Advantage in a $610 Billion Market

The IT managed services market's projected 2025 size—$610 billion, with 98% of revenue generated by channel partners—underscores the urgency for MSPs to specialize in high-margin cybersecurity services N-able’s John Pagliuca on Key Trends Driving MSP Growth in 2025^[3]. N-able's ADaaS addresses this need by lowering the barrier to entry for advanced security capabilities. Smaller MSPs, which might lack the resources to invest in standalone security tools, can now offer enterprise-level protection through N-able's platform, leveling the playing field against larger competitors N-able Wants MSPs to 'Pick Their Cybersecurity Journey'^[2].

Moreover, AI adoption is accelerating this shift. With 94% of MSPs already leveraging generative AI for workflow automation and sales optimization MSP Industry Set for Major Growth through 2025: N-able^[4], N-able's ADaaS integrates seamlessly into AI-driven operations. For instance, AI-powered backup and recovery—a top future demand in managed services—are embedded into ADaaS, enabling MSPs to future-proof their offerings while reducing operational costs N-able Wants MSPs to 'Pick Their Cybersecurity Journey'^[2].

Market Validation and Future Outlook

N-able's Second Annual MSP Horizons Report, conducted with Canalys, highlights a clear trend: cybersecurity-related services will dominate revenue growth over the next three years, with third-party managed detection and response (MDR) services leading the charge N-able’s Second Annual MSP Horizons Report Shows Significant Growth Opportunity for Global MSPs with Cybersecurity Leading the Way^[1]. ADaaS's focus on MDR and threat mitigation positions it at the intersection of these trends.

Investors should also note the broader market dynamics. As cyber resilience becomes a boardroom priority, organizations are willing to pay a premium for solutions that simplify compliance and reduce downtime. N-able's ADaaS, with its emphasis on proactive threat detection and recovery, directly addresses these pain points. For MSPs, this means higher client retention and upsell opportunities—critical in a market where 90% of surveyed providers expect cybersecurity sales growth N-able’s Second Annual MSP Horizons Report Shows Significant Growth Opportunity for Global MSPs with Cybersecurity Leading the Way^[1].

Conclusion: A Strategic Bet on Cyber Resilience

N-able's ADaaS is more than a technical innovation—it's a strategic enabler for MSPs navigating a rapidly evolving threat landscape. By combining proactive defense, AI integration, and a scalable platform, ADaaS empowers MSPs to capture a larger share of the cybersecurity market while addressing midmarket businesses' most pressing needs. As the line between IT and security operations blurs, N-able's platform offers a clear path to differentiation, making it a compelling investment in a sector poised for explosive growth.