Financially empowering the modern MSP

Endpoints remain a primary attack surface as threats evolve, with 32 per cent of ransomware attacks exploiting unpatched vulnerabilities and average recovery costs hitting $1.53m

Endpoints have become a primary battleground as cyber threats evolve and multiply, with attackers increasingly exploiting weaknesses at the edge. Sophos’ State of Ransomware 2025 report found that 32 per cent of attacks stem from unpatched vulnerabilities, highlighting the growing risk of basic security gaps.

At the same time, visibility is shrinking. With 99 per cent of web traffic now encrypted, much of today’s malicious activity can evade traditional network defences, leaving organisations exposed once the perimeter is breached.

The financial stakes are also rising, with the average cost to recover from a ransomware attack reaching $1.53m.

In the face of these threats, MSPs can no longer operate endpoint and network security in silos. They need a unified security posture that bridges the endpoint and network layer. For this to happen at scale, pricing models around critical security measures must catch up.

The strain of upfront costs

From AI being used to accelerate attacks to the growing professionalisation of cybercrime, the threat landscape is expanding. The need for next-generation firewalls has never been greater. And yet a major operational and financial blocker has historically stalled widespread adoption.

While MSPs build their business models around predictable, monthly recurring revenue, traditional firewall procurement has stubbornly remained payable in the form of large, upfront hardware costs.

This capital expenditure (CapEx) model puts MSPs under strain, with cash-flow pressure leading to considerable financial risk, and it is often a hard-sell to end customers with tight budgets. And so it is unsurprising that upfront hardware expenses are the number one reason firewall deals stall.

"The proof is in our own data: 3,800 existing MSP Flex partners, representing nearly 200,000 of our end customers, are not currently using Sophos Firewall. Why? Because upfront hardware charges simply do not align with how they manage their monthly portfolios. This same pattern will be true for our competitors."

There is a gap in our industry. Firewalls should be non-negotiable, so why are they not always accessible? That’s why we at Sophos are making a change.

Introducing Sophos Firewall Hardware-as-a-Service

To eliminate this friction and reshape how network security is delivered, Sophos is launching Sophos Firewall Hardware-as-a-Service (HWaaS) on July 1, 2026. Designed exclusively for MSP Flex programme members, this model shifts traditional, one-time hardware purchases into predictable, monthly recurring revenue.

Partners can now acquire and deploy Sophos Firewall hardware through their existing monthly Flex billing framework, with zero upfront hardware costs. By matching operational expenses directly to recurring revenue from end customers, the model alleviates cash-flow pressure and lowers financial barriers to entry.

Driving deals and expansion

By removing the need for MSPs to pitch intimidating upfront capital costs to price-sensitive clients, Sophos Firewall HWaaS significantly speeds up the pace at which new deals can be struck. This shift also plays a role in competitive renewals, giving our partners an advantage over MSPs still bound by upfront costs.

Moreover, the model unlocks entirely new customer segments, including companies that need next-generation protection but have, until now, been unable to commit to steep capital purchases.

Simplified lifecycle management

Sophos Firewall HWaaS also allows partners to standardise their entire client base on a consistent network security platform. Instead of managing a deluge of multi-vendor firewalls that drive up complexity and overheads, HWaaaS transforms hardware procurement into a predictable, monthly expense.

Moreover, when combined with the broader Sophos ecosystem, the model enables total vendor consolidation and eliminates tool sprawl. This unified approach unlocks Sophos Synchronized Security, directly neutralizing the threat of targeted endpoint attacks.

The path ahead

Ultimately, Sophos Firewall HWaaS represents a fundamental shift, meeting modern MSPs where they are and matching how they operate today. It replaces upfront capital risks with predictable margins, simplifies procurement through trusted distributor workflows, and enhances client security postures through a trusted security stack.

For growth-oriented MSPs looking to eliminate financial friction, accelerate deal velocity, and secure client environments from the endpoint to the perimeter, the path forward has never been clearer.

If you would like to know more about Sophos Firewall Hardware-as-a-Service, connect with your aligned Sophos Distribution Partner for more details on pricing, eligibility and available configurations.

This article is sponsored by Sophos.