The Hidden Struggle of MSPs and Tool Sprawl
As the demand for advanced security solutions increases, MSPs face a growing challenge: tool sprawl.
The Hidden Struggle of MSPs and Tool Sprawl
Introduction
Managed Service Providers (MSPs) play a critical role in the IT and cybersecurity landscape, managing and securing the IT environments of a diverse range of clients. However, as the demand for advanced security solutions increases, MSPs face a growing challenge: tool sprawl. Tool sprawl refers to the accumulation of an excessive number of tools within an organization’s infrastructure, often resulting in inefficiencies, increased costs, and operational challenges. This report delves into the hidden struggle of MSPs with tool sprawl, examining its causes, consequences, and potential solutions.
Understanding Tool Sprawl
Definition and Causes
Tool sprawl is the phenomenon where organizations accumulate numerous tools, often with overlapping functionalities, to address various IT and cybersecurity needs. For MSPs, this issue is exacerbated by their responsibility to manage diverse client environments, each with unique requirements. The primary causes of tool sprawl include:
- Rapid Technological Adoption: The cybersecurity market is flooded with "latest and greatest" tools, tempting MSPs to adopt new solutions without fully integrating them (Field Effect, 2024).
- Dispersed Decision-Making: Multiple stakeholders within an organization may independently adopt tools, leading to redundancy (EdgeDelta, 2024).
- Lack of Centralized Governance: Without a unified strategy for tool management, MSPs often end up with a fragmented toolkit (CheckRed, 2024).
The Scale of the Problem
A survey by Arctic Wolf revealed that 36% of MSPs/MSSPs use more than 10 cybersecurity tools, while 30% rely on four to five vendors to deliver services (Arctic Wolf, 2024). This highlights the widespread nature of tool sprawl and its impact on the industry.
Consequences of Tool Sprawl for MSPs
1. Operational Inefficiencies
Tool sprawl increases the complexity of IT environments, making it difficult for MSPs to manage and secure their clients’ systems effectively. Switching between multiple tools wastes valuable time and resources, slowing down threat detection and response (MSSP Alert, 2024).
2. Increased Costs
Maintaining a large number of tools comes with significant financial burdens, including licensing fees, training costs, and vendor management expenses. Redundant tools further inflate costs without adding value (Field Effect, 2024).
3. Security Risks
A fragmented toolkit can lead to inconsistent security policies across client environments, creating vulnerabilities and increasing the risk of cyberattacks. Additionally, the lack of integration between tools can result in missed alerts and delayed responses (CheckRed, 2024).
4. Talent Recruitment and Retention Challenges
The IT industry faces a shortage of skilled professionals, and tool sprawl exacerbates this issue by increasing the learning curve for new employees. MSPs must invest significant time and resources in training staff to use multiple tools, which can deter potential hires (Todyl, 2025).
5. Scalability Issues
As MSPs grow their client base, managing a fragmented security stack becomes increasingly difficult. Onboarding new clients and maintaining consistent security practices across all environments is challenging without a centralized platform (MSSP Alert, 2024).
Solutions to Address Tool Sprawl
1. Tool Consolidation
Consolidating tools into a single platform can streamline operations, reduce costs, and improve efficiency. A unified platform allows MSPs to enforce consistent security policies, simplify reporting, and enhance threat detection and response (MSSP Alert, 2024).
2. Centralized Management
Implementing a centralized system for tool monitoring and control can help MSPs maintain a cohesive and efficient toolkit. This approach reduces redundancies and ensures that all tools are effectively utilized (EdgeDelta, 2024).
3. Standardization and Governance
Establishing guidelines for tool adoption and management can prevent unnecessary acquisitions and promote a more strategic approach to tool usage. Governance frameworks ensure that all tools align with organizational goals and client needs (EdgeDelta, 2024).
4. Training and Support
Providing comprehensive training and ongoing support for tool users can enhance productivity and reduce the learning curve for new employees. This is particularly important for retaining top talent in a competitive job market (Todyl, 2025).
5. Continuous Monitoring and Improvement
Regularly reviewing and optimizing the functionality of tools ensures that they remain relevant and effective. Continuous improvement helps MSPs adapt to changing client needs and technological advancements (EdgeDelta, 2024).
The Role of Technology in Combating Tool Sprawl
Professional Services Automation (PSA)
PSA platforms can help MSPs streamline their operations by automating routine tasks, tracking client activities, and providing detailed reports. This reduces the need for multiple tools and enhances overall efficiency (Syncro, 2024).
Modular and Scalable Security Solutions
Adopting modular and scalable security solutions allows MSPs to customize their toolkits based on client needs without overloading their infrastructure. These solutions enable effortless scaling and reduce operational complexity (MSSP Alert, 2024).
Unifying Security Operations
Companies can leverage integrated suites like BestDefense—Maelstrom for high-fidelity load and stress testing, Vortex for automated web application and infrastructure vulnerability scanning, and Echo for continuous network threat intelligence—MSPs can replace disparate performance, scanning, and threat-feed tools with a single pane of glass. This consolidation not only simplifies licensing and vendor management but also ensures consistent policy enforcement, unified reporting, and streamlined alert workflows across all client environments. Their suite of products grows each year to address tool sprawl and alarm fatigue.
Conclusion
Tool sprawl is a significant challenge for MSPs, impacting their efficiency, costs, and ability to deliver effective security services. However, by adopting strategies such as tool consolidation, centralized management, and continuous improvement, MSPs can overcome this issue and enhance their operational performance. The key lies in shifting from a tool-focused mindset to an operations-focused approach, leveraging technology to streamline workflows and reduce complexity. As the global market for managed IT services is projected to reach $552 billion by 2032 (Syncro, 2024), addressing tool sprawl will be critical for MSPs to remain competitive and deliver value to their clients.
References
Arctic Wolf. (2024). How MSPs Can Solve Their ‘Too Many Tools’ Problem. https://arcticwolf.com/resources/msp-blog/how-msps-can-solve-their-too-many-tools-problem/
CheckRed. (2024). MSPs and MSSPs - Do too many security tools make you more vulnerable? https://checkred.com/resources/blog/msps-and-mssps-do-too-many-security-tools-make-you-more-vulnerable/
EdgeDelta. (2024). What is Tool Sprawl: Causes, Identification, and Management Strategies. https://edgedelta.com/company/blog/what-is-tool-sprawl
Field Effect. (2024). Tackling security tool sprawl: Tips for MSPs. https://fieldeffect.com/blog/tool-sprawl-tips-msps
MSSP Alert. (2024). Security Tool Consolidation and Platformization: The Benefits for MSPs. https://www.msspalert.com/native/security-tool-consolidation-and-platformization-the-benefits-for-msps
Syncro. (2024). Top MSP Challenges (and Solutions) for 2025. https://syncromsp.com/blog/top-msp-challenges-solutions-2025
Todyl. (2025). MSP Challenges Looking into 2025. https://www.todyl.com/blog/msp-challenges-2025
Best Defense. (2025). Who We Serve - MSP
