For years, MSPs have been selling Compliance as a Service (CaaS) as a golden opportunity. Regulations were tightening. Clients were scared. And compliance frameworks seemed like the perfect way to get businesses to take security seriously. 

But here’s the reality: Compliance isn’t what you think it is. And if you don’t adapt, your CaaS program could be a dead-end revenue stream that takes your business down with it. 

The Government Just Pulled the Plug on Enforcement 

What happens when compliance is no longer enforced? Your clients stop caring. And that’s exactly what we’re heading toward in 2025. 

Here’s what’s happening right now: 

  • DoD Budget Cuts: Defense Secretary Pete Hegseth has ordered massive reductions, reportedly twice as severe as the 2013 sequestration. That means fewer resources to enforce cybersecurity mandates.
  • CISA Layoffs: Over 130 employees at the Cybersecurity and Infrastructure Security Agency (CISA) have been dismissed—including those focused on protecting critical infrastructure and elections.
  • Federal Workforce Reductions: Over 100,000 federal workers have been let go. Former NSA cybersecurity director Rob Joyce has warned that these cuts will weaken national security and cybersecurity efforts across the board.

If you’re pitching compliance right now, you’re about to run into a big problem: Your clients are going to stop caring. 

They’ll look at you and say, “Why invest in compliance if no one is enforcing it?” 

And they’ll be right. Because compliance isn’t about enforcement—it’s about liability. 

The Real Reason Compliance Matters 

Compliance is about protecting your business when the breach happens—not about satisfying auditors. 

When the lawyers show up after a breach, they don’t care if you had a CMMC certification. They don’t care if you passed an FTC Safeguards checklist. They care about one thing: Can you prove you took the right steps to protect client data? 

Because when your client gets sued (and they will), they’re going to turn around and blame you. 

So stop selling Compliance as a Service. Start selling Cyber Liability Guard. 

Why MSPs Need to Pivot—Right Now 

MSPs that are relying on compliance to win federal contracts or regulated clients need to wake up. 

Big budget cuts don’t just mean fewer workers. They mean fewer contracts. They mean businesses that can’t afford to spend more money. They are going to be focused on holding on to every nickel they have. 

And that means MSPs banking on CMMC as their next big revenue driver are about to get burned. 

Here’s What to Do Right Now 

  1. Change Your Messaging: Compliance isn’t about enforcement. It’s about cyber liability. Start talking about risk protection, evidence collection, and legal defense—not just checklists and frameworks.
  2. Rename Your Offering: Compliance as a Service is dead. Sell Cyber Liability Guard instead. This shifts the conversation from “checking boxes” to protecting your client from financial ruin.
  3. Educate Your Clients: Show them that without documented security efforts, their cyber insurance claims will get denied, their vendors will cut ties, and they’ll be left holding the bag after a breach.
  4. Shift Your Focus Away from Government Contracts: If you’ve been targeting clients with federal ties, now is the time to rethink your strategy. When the money dries up, so does the demand for compliance.

Compliance Won’t Save You. Cyber Liability Will. 

The MSPs who pivot now will come out on top. The ones who stick with CaaS will be left scrambling when their clients stop buying. 

If you’re serious about protecting your MSP from what’s coming, it’s time to rethink your strategy. Let’s talk about how to operationalize Cyber Liability Guard.