from compliance to profit: how MSPs can monetize sustainability services in the MSP 3.0 era 

Not long ago, compliance was viewed as a necessary evil: an endless checklist to be ticked off, filed away, and forgotten until the next audit rolled around. Fast-forward to 2025, and the industry has undergone significant transformation. Today, compliance isn’t just a box to check; it’s a powerful driver of revenue and a key differentiator for managed service providers (MSPs) aiming to stay ahead. 

The numbers are compelling: compliance services for MSPs are projected to grow by a remarkable 28% this year, far outpacing the broader managed services market. This surge is fueled by a wave of new regulations and a growing expectation from clients who want their MSPs to be more than just IT troubleshooters—they want trusted advisors who can guide them through the complex terrain of security, privacy, and sustainability. 

But it’s not just about keeping regulators happy. Sustainability has moved from the periphery to the heart of business strategy. With regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) now in effect and sustainability criteria embedded in most enterprise procurement processes, MSPs are uniquely positioned to help clients meet these new demands—and unlock new sources of value in the process. 

In this article, we’ll explore how compliance and sustainability are reshaping the MSP business model, and how forward-thinking providers can leverage these challenges to generate recurring revenue, build stronger client relationships, and gain a lasting competitive edge. 

compliance: no longer optional, now a revenue driver 

The numbers tell the story. According to Canalys, compliance services are set to grow by 28% for MSPs in 2025, outpacing even the strong overall managed services market, which is forecast to expand by 13% to $595 billion globally. This surge is driven by a wave of new regulations, such as the EU’s Digital Operational Resilience Act (DORA), and by clients who increasingly expect their MSP to be a trusted advisor on security, privacy, and regulatory matters. 

For small and medium businesses, compliance is becoming an imperative, and many are turning to their MSPs for ongoing guidance, monitoring, and reporting. This shift means MSPs can (and should) move beyond one-off compliance projects to offer recurring, value-added compliance and sustainability services. 

the sustainability imperative 

Sustainability is now a core business driver for MSPs and their clients in 2025. Regulatory pressure is at an all-time high: the EU’s Corporate Sustainability Reporting Directive (CSRD) is now in effect, requiring tens of thousands of companies to produce audit-ready ESG data, and similar requirements are being adopted globally. This regulatory momentum is matched by business demand: according to recent industry analysis, sustainability is no longer a checklist item but a lever for winning deals, reducing risk, and driving operational efficiency. Spending on ESG data platforms is expected to exceed $5 billion by the end of 2025, as companies invest in systems to meet these new standards and respond to rising expectations from customers and investors. 

While earlier forecasts suggested that 75% of digital infrastructure RFPs would require ESG proof by 2024, the 2025 landscape has evolved even further: sustainability criteria are now embedded in most enterprise procurement processes, and companies that treat ESG as a strategic priority are seeing direct links to ROI, access to sustainability-linked finance, and competitive advantage. For MSPs, this means clients increasingly expect help not only with compliance, but also with implementing circular IT, tracking carbon, and integrating sustainability into core IT operations. 

monetizing compliance and sustainability: practical steps 

1. package compliance & sustainability as a service 

Move beyond ad hoc projects. Offer bundled, ongoing services—compliance frameworks, ESG reporting, secure asset lifecycle management, and circular IT solutions—under a single, recurring revenue model. Automation and monitoring tools can streamline delivery and reporting, making it easier to scale. 

2. educate and acculturate clients 

Clients, especially SMBs, often find regulations complex and sustainability goals abstract. MSPs can add value by simplifying compliance, translating sustainability into business ROI, and providing clear roadmaps for achieving both. Educational content, workshops, and consulting can open up new budget lines and deepen client relationships. 

3. differentiate with circular IT 

Circular IT—refurbished hardware, lifecycle extension, ethical disposal—directly supports both compliance and sustainability goals. These services reduce costs, cut environmental impact, and help clients meet regulatory requirements for e-waste and carbon reporting. MSPs that offer certified, secure circular IT solutions can command premium pricing and stand out in a crowded market. 

4. build recurring revenue models 

Recurring revenue is the holy grail for MSPs. By integrating compliance and sustainability into managed services contracts, MSPs create predictable, long-term income streams. After helping clients achieve certification readiness (ISO 27001, SOC 2, etc.), MSPs can layer in recurring monitoring and audits. This guarantees ongoing compliance, as certifications requirements evolve over time, while creating long-term stickiness, as switching providers would mean disruptive re-onboarding and complex documentation processes. 

5. quantify and communicate value 

Clients want to know the impact of their investments. Use data and KPIs to demonstrate cost savings, risk reduction, and environmental benefits. Advanced customer research and value quantification can help MSPs set optimal pricing and position their services as essential, rather than optional. 

Some clients may be skeptical about the ROI of sustainability or balk at the perceived cost of compliance. The key is transparency: provide clear, data-backed metrics and avoid greenwashing. Show how operational efficiencies, risk reduction, and brand enhancement more than offset any additional costs. 

the bottom line: compliance and sustainability as profit centers 

The MSP landscape is changing fast, and those who view compliance and sustainability as mere obligations risk missing the bigger opportunity. In today’s market, these aren’t just boxes to tick—they’re powerful levers for growth, deeper client relationships, and real differentiation. 

The most successful MSPs are already moving beyond the basics, packaging compliance and sustainability as value-added services, and helping clients turn challenges into measurable wins. 

Today is your moment to lead. By embracing circular IT, providing clear guidance, and quantifying the impact of your services, you can position your business as an indispensable partner in a rapidly evolving world. The future belongs to those who turn regulatory pressure into recurring profit—and who help their clients do the same. 

Ready to take your compliance and sustainability offerings to the next level? Connect with us today for expert advice and innovative circular IT infrastructure solutions. Let’s shape a smarter and more sustainable future together!