Why Compliance as a Service (CaaS) is the Next Big Opportunity for MSPs

This blog is taken from the Beyond the Horizon Podcast, MSP’s Guide to Getting Started with Compliance as a Service (CaaS).

The IT landscape is always evolving, and MSPs that fail to adapt risk being left behind. Years ago, the big shift was from break-fix to managed services. More recently, it’s been about strengthening security offerings to keep up with the growing threat landscape. Now, there’s a new shift happening, one that combines security, risk management, and operational efficiency into a single package: Compliance as a Service (CaaS).

Businesses are facing increasing regulatory pressures, and they’re looking for partners who can help them navigate compliance requirements while also improving their overall security posture. For MSPs, this isn’t just a challenge, it’s a massive opportunity. Those who embrace compliance now will not only future-proof their business but also differentiate themselves in an increasingly crowded market.

Why Compliance is Becoming Critical for MSPs

MSPs have long played a crucial role in managing their customers’ IT infrastructure, ensuring systems stay up and running while minimizing downtime. But in today’s world, that’s no longer enough. Businesses aren’t just looking for IT support – they need help meeting regulatory requirements, mitigating cybersecurity risks, and proving they are compliant with industry standards.

And with over 338,000 companies globally offering IT managed services (according to industry analyst firm Canalys who helped produce the 2025 MSP Horizons Report), competition is fierce. Customers have options, and if an MSP isn’t offering compliance-focused services, another provider will.

CaaS isn’t just about meeting regulatory or legal requirements, it’s about helping customers build stronger, more resilient businesses. A well-implemented compliance strategy improves security, streamlines operations, and reduces risks. This makes it a high-value service that goes beyond simple IT management.

How Compliance Can Drive Growth for MSPs

Shifting into compliance services isn’t just a defensive move to stay relevant—it’s an offensive strategy that can drive significant growth.

1. Expanding into New Industries

Many regulated industries – healthcare, finance, government contracting, legal services – require strict compliance with data protection laws. MSPs that develop expertise in these areas can unlock new revenue streams and long-term customer relationships.

2. Upselling to Existing Customers

Many MSPs already work with customers who need compliance support but may not realize it. By adding CaaS, MSPs can offer higher-value services and increase customer retention.

3. Moving from Service Provider to Trusted Advisor

Compliance discussions go beyond IT. They involve legal, financial, and operational considerations, which elevates an MSP’s role in a customer’s business. Instead of just fixing issues, MSPs offering CaaS become key strategic partners.

The real game-changer? CaaS isn’t just about meeting regulations, it’s about making businesses stronger, more secure, and more efficient.

Security and Compliance: The Next Evolution for MSPs

Many MSPs have already built strong security offerings, but compliance takes this a step further. The difference? Security is about maintaining confidentiality, integrity, and availability of data as well as reducing risks from threats; compliance is about proving through documentation, evidence, processes, and security controls that the necessary adherence to industry regulations, legal requirements, and established best practices are in place and auditable.

A customer may have firewalls, endpoint protection, and a disaster recovery plan, but if those systems aren’t being properly documented, tested, or aligned with regulatory requirements, they could still fail an audit – or worse, face legal consequences after a breach.

By integrating compliance into security services, MSPs can provide a more complete solution that meets both regulatory and operational needs.

Pro Tip: Compliance frameworks like NIST, CMMC, and ISO 27001 are designed to provide structured security guidance. Aligning security offerings with these frameworks can help MSPs deliver compliance-ready solutions.

The Time to Act is Now

The shift to compliance services isn’t something that MSPs can afford to ignore. Businesses are looking for partners who can help them meet compliance standards, reduce risk, and stay ahead of regulatory changes.

If an MSP continues operating the same way they did five years ago, they will struggle to compete with providers that have embraced compliance as a core service. The businesses that thrive will be those that recognize the shift early and position themselves as compliance leaders.

MSPs should stop being passengers just along for the ride, and begin taking an active role in steering where the journey goes for them and their customers – or risk being left behind when someone else takes the wheel.

Next Steps: How to Get Started with Compliance as a Service

For MSPs looking to take the next step, understanding how to implement and scale CaaS is key. From conducting internal assessments to choosing the right compliance frameworks, there are clear steps MSPs can take to build a sustainable and profitable compliance practice. I will be publishing a blog on this very soon!

For a deeper dive into this topic, watch the full Podcast interview, Beyond the Horizon: MSP’s Guide to Getting Started with Compliance as a Service (CaaS). The discussion  covers real-world strategies, insights, and practical advice to help MSPs make the transition successfully.

Also check out my next blog How MSPs Can Successfully Launch and Deliver Compliance as a Service (CaaS)

Lewis Pope is the Head Security Nerd at Nable. You can follow him on

LinkedIn: thesecuritypope