In 2025, Microsoft Teams is far more than just a collaboration and communications tool; it’s a mission-critical platform used by over 320 million monthly active users.
Over 93 percent of Fortune 100 companies rely on Teams, and its widespread adoption outlines a massive opportunity for MSPs. As more businesses integrate Teams into their workflows, MSPs have a prime opportunity to build high-value, subscription-based services around Microsoft’s flagship platform. From premium support to proactive monitoring, these solutions can help MSPs generate sustainable ARR.
In this article, Martello explores three key strategies MSPs can adopt to propel ARR growth: expanding service offerings, maximizing client retention, and investing in scalable business growth.
Expand Service Offerings: Unlock New Revenue Streams
The widespread adoption of Microsoft Teams represents a colossal opportunity for MSPs to add high-value, subscription-based services. While many MSPs have traditionally viewed Teams as an implementation or migration project, reframing it as an ongoing service can elevate Microsoft’s flagship UC platform into an invaluable, predictable revenue stream.
MSPs are fundamentally addressing a critical business need by offering Teams monitoring, premium support, and performance experience management services. Organizations depend on Teams for seamless comms, and any downtime or performance issues can culminate in severe operational disruptions. Teams has recorded over 330 billion meeting minutes in a single day, underscoring just how essential it has become to enterprise operations in 2025.
MSPs that include proactive monitoring and premium support can appeal to customers by offering optimal performance, palatable reductions in troubleshooting time, and tangible boosts to business user satisfaction.
Another compelling strategy is bundling Teams-related services, such as endpoint management and UC solutions. This not only reaffirms the value proposition but also accelerates the revenue potential. Crafting premium services around Teams Phone and Microsoft Teams Rooms—both of which have driven immense user growth, reaching 20 million and 1 million users, respectively—can signal high-margin opportunities.
By building these kinds of services onto existing Microsoft 365 offerings, MSPs can cultivate a thorough and compelling solution for customers, driving more sustainable long-term revenue.
Maximize Client Retention: Strengthen Relationships for Long-Term Success
Recurring revenue is not just about acquiring new customers—it’s about retaining current ones. MSPs who persistently and consistently deliver value to their existing clients through ongoing capabilities like proactive monitoring and performance optimization can limit churn and build stronger, long-lasting relationships.
A game-changing differentiator for every MSP is the capacity (and ambition) to deliver a superior service experience. By going above and beyond standard Microsoft tools and turning to advanced monitoring and user experience management offerings, MSPs can craft a level of sophisticated service that competitors cannot compete with.
The result of this advanced feature set is both customer service quality improvements and bolstered efficiency for the MSP, culminating in higher margins and a thoroughly satisfied client.
Moreover, expanding upon the foundations of an existing service can elevate its general value. For example, MSPs traditionally offering Teams implementation or migration services can evolve these into long-term monitoring and management contracts.
With over 8 million companies in the US, 1.9 million in the UK, and 855,000 in Canada using Teams, ample opportunity exists to tie down long-term customers. Meanwhile, transforming one-off projects into predictable, recurring revenue also solidifies the MSP as a valuable long-term partner.
By illustrating constant value—whether via proactive issue resolution, SLA tracking, or personalized performance optimizations—MSPs can be confident that customers remain engaged and satisfied with the service delivered, fortifying their ARR base.
Invest in Scalable Growth: Drive ARR with Smart Strategies
Expanded offerings are one strategy, and client retention is another. Investment in scalable business strategies and full use of automation and data-driven insights to optimize service delivery are just as critical to sustainable ARR growth for MSPs.
Automation can play a major role in MSPs’ scaling operations while preserving service quality. Introducing automated monitoring tools for Teams can support MSPs in detecting and resolving issues before they adversely impact end users.
Correspondingly, AI-powered analytics can grant MSPs quicker and more meaningful insights, resulting in optimized performance for clients and minimized support costs for MSPs.
Consolidation of tools and correlation across data sources can greatly accelerate and scale service support workflows and ensure the end-to-end visibility needed to manage clients’ Teams environments most efficiently and effectively.
Conclusion
Enterprise demand for Microsoft Teams services continues to grow apace, creating openings for MSPs to buttress their revenue streams. MSPs can build a sustainable business model with predictable ARR by adding high-value subscription services, reinforcing and refining client retention strategies, and shrewdly investing in scalable growth.
With Teams now generating billions in revenue annually and serving millions of businesses around the globe, MSPs who seize this opportunity can transform Teams’ services into invaluable revenue drivers.
Discover how Martello can support your revenue growth journey with partner-focused resources—including a must-read eBook: How to Make Money Managing Microsoft Teams and practical blueprints—to help you monetize Microsoft Teams, maximize margins, and deliver standout customer experiences.
This post originally appeared on Service Management - Enterprise - Channel News - UC Today.