It’s no surprise that the most popular managed service is security. Cybersecurity threats are a daily occurrence and continue to get more sophisticated, with identity-based attacks now the primary vector. For example, 2023 saw a 72% increase in data breaches since 2021, which held the previous record.

MSPs report that customers are requesting more information on cybersecurity and best practices. Companies of all sizes don’t have the in-house staff and resources to manage all their enterprise IT, identity security, and cloud requirements. Outsourcing IT and cybersecurity responsibilities to MSPs or MSSPs (managed security service providers) allows companies to focus on their primary business goals.

There is no better time for MSPs to invest in or expand Zero Trust security offerings by adding Privileged Access Management (PAM) to their security toolkit. For MSPs servicing highly regulated industries like healthcare, finance, and critical infrastructure, where data breaches can result in severe penalties or impact large communities, the value of securing and monitoring privileged credentials is undeniable.

4 Reasons PAM Can Help Your MSP Business

1. Enhance Your Zero Trust Offerings 

As more businesses embrace cloud computing and hybrid IT environments, traditional network security approaches fail to protect dynamic infrastructures. A Zero Trust security model—where every user and device is verified, and access is limited to “least privilege”—is necessary. PAM aligns perfectly with Zero Trust principles by securing the “keys to the kingdom“—the administrative credentials that attackers target most.

PAM enhances existing security stacks by adding granular control over who can access what. MSPs can help clients eliminate standing privileges and stop unauthorized access before it starts. This means that even if a user is compromised, the threat is contained because they lack the privileged credentials to move laterally or access critical assets.

2. Differentiates Your MSP Services & Creates New Revenue Streams 

The MSP market is highly competitive, with many providers offering similar services such as remote monitoring, IT support, and basic antivirus. To stand out, MSPs need to provide solutions that address the evolving needs of their customers. PAM helps differentiate MSPs from those that rely only on traditional firewalls and basic password managers.

According to Gartner, identity-first security is becoming a primary focus for enterprises adopting Zero Trust. Adding a PAM solution allows MSPs to help customers go beyond basic perimeter defense. This can be a significant selling point for enterprises looking for partners who can deliver the highest levels of security.

MSPs can create new revenue streams through value-added security offerings. PAM solutions are typically offered as a premium service with the opportunity to charge for initial assessments, implementation, and ongoing management—or bundle it with other security offerings, such as compliance management.

3. Simplify Compliance and Audit Readiness 

Many businesses, especially those in regulated industries, face stringent compliance requirements around data protection and access control. For example, cyber insurance policies now frequently mandate the use of Privileged Access Management and MFA for admins. PAM makes it easier for MSPs to help clients achieve compliance with regulatory standards such as GDPR, HIPAA, PCI-DSS, NIST SP 800-207, and others. By vaulting sensitive credentials and recording privileged sessions, MSPs can demonstrate that their clients have implemented robust security controls.

PAM also simplifies the process of generating audit reports. Because every privileged session is logged, recorded, and tied to a specific identity, it is easier to monitor and document who accessed what and when. This level of visibility helps clients provide evidence of compliance during audits, which is a significant selling point for MSPs targeting heavily regulated sectors.

4. Future-Proof MSP Services for Evolving Threats 

The cyber threat landscape is constantly evolving, with attackers shifting focus from “hacking in” to “logging in” using stolen credentials. PAM allows MSPs to future-proof their own security by providing granular control over administrative access, making it nearly impossible for attackers to use stolen credentials to deploy ransomware.

With 9 out of 10 managed service providers stating they have suffered a successful cyberattack, PAM adds a critical layer of internal protection. It supports the CISA’s recommendation for MSPs to strictly control access to client networks, group critical assets, and enforce MFA on all privileged accounts.

MSPs can ensure they are prepared to tackle emerging threats, providing clients with peace of mind. This is especially valuable as businesses adopt new technologies such as cloud, IoT, and AI. As these technologies increase the complexity of IT infrastructures, the need for sophisticated identity security measures like PAM becomes critical.

12Port PAM for MSPs – A Strategic Investment

MSPs looking to add Privileged Access Management to their portfolio need a solution that is easy to manage across diverse customer environments and built for multi-tenancy.

The 12Port Agentless PAM platform allows MSPs to secure and manage customer credentials—on-premises, hybrid, or in the cloud—while offering unmatched visibility, control, and ease of deployment. With a scalable, multi-tenant architecture, 12Port integrates with your existing security stack and makes deploying Zero Trust access controls effortless.

Ready to grow your business with a PAM solution that doesn’t increase your complexity? 

Contact us today to learn more and hear about our MSP pricing https://www.12port.com/contact-us/