What is NIS2 and why does it matter for MSPs?

NIS2 is the EU Network and Information Systems Directive, an update to the original 2016 legislation. Its goal is to strengthen Europe’s collective cybersecurity resilience by setting out minimum security and reporting standards for “essential” and “important” entities.

Managed service providers are explicitly mentioned under NIS2 as part of the supply chain that can impact essential services. This means that even if your MSP isn’t directly regulated, your clients (particularly those in sectors like healthcare, energy, transport, finance or digital infrastructure) will expect you to align with NIS2 best practices.

By getting ahead of NIS2, MSPs not only reduce risk but also gain a competitive advantage: you become the partner who already understands compliance and can prove it.

Who does NIS2 apply to and what’s changing?

NIS2 applies to:

• Essential entities: energy, transport, health, water and digital infrastructure providers – including large MSPs.

• Important entities: manufacturing, food, postal and digital service providers – including medium sized MSPs.

MSPs are included under “digital service providers”, meaning your internal security, reporting and risk management processes can be audited.

Key changes from the original NIS Directive include:

• Broader scope: covers more sectors and suppliers.

• Stronger penalties: fines up to €10 million or 2% of global turnover.

• Accountability: senior management can be held liable for non-compliance.

• Mandatory reporting: incidents must be reported within 24 hours.

For MSPs, these requirements mean elevating cybersecurity from best-effort service delivery to auditable governance, and clients will expect evidence.

Why should MSPs view NIS2 as a business opportunity?

Rather than treating NIS2 as a compliance burden, progressive MSPs see it as a growth driver.

Your SMB and mid-market clients are under growing pressure to prove cyber accountability to insurers, auditors and regulators. They’re asking questions like:

• “How do we show evidence of risk management?”

• “Who monitors our security controls?”

• “Can you help us report incidents properly?”

By building NIS2-aligned services, MSPs can:

• Offer premium compliance-ready security bundles.

• Win clients in regulated industries.

• Reduce churn by proving measurable security outcomes.

• Build trusted-advisor status that moves beyond basic IT support.

With enhanced.io’s platform, you can easily create client-ready reports that demonstrate continuous security improvement, a crucial part of NIS2’s evidence requirements.

Step-by-step: How can MSPs align with NIS2 today?

Step 1: Understand your obligations and client expectations

Start by mapping your services against NIS2’s key domains:

• Risk management

• Incident reporting

• Business continuity

• Supply chain security

• Network and system security

• Access control

• Governance and accountability

This helps identify where your MSP already meets NIS2 standards and where gaps exist.

Step 2: Establish clear security governance

NIS2 requires evidence that cybersecurity is managed at a senior level. For MSPs, this means defining who owns:

• Security policies

• Incident response procedures

• Partner and supplier risk management

Using enhanced.io’s Fractional Security Director model, MSPs can show structured oversight and deliver board-level insights without needing to hire full-time staff.

Step 3: Implement continuous monitoring and detection

Continuous, cross-client visibility is at the heart of NIS2 – and enhanced.io’s Open XDR capabilities aggregate alerts across your clients’ environments, detect threats early and maintain the logs needed for compliance reviews.

Continuous monitoring demonstrates proactive risk management, not just reactive protection.

With enhanced.io’s managed Open XDR approach, MSPs can demonstrate measurable risk reduction, not just reactive detection.

Step 4: Define your incident reporting workflow

Under NIS2, major incidents must be reported within 24 hours.

Create a clear internal process that covers:

1. Who triages and validates incidents

2. How clients are notified

3. What information is recorded for post-incident review

This is simplified by enhanced.io – with audit-ready incident summaries that can be exported for regulators or clients instantly.

Step 5: Prove compliance with evidence and reporting

Auditors and clients will expect proof that security controls are active and effective so enhanced.io’s reporting tools are designed to automatically compile:

• Threat detections and response timelines

• Vulnerability management progress

• Patch and remediation status

• Policy compliance metrics

These audit-ready reports eliminate manual data gathering and prove your compliance posture at any point in time, helping MSPs demonstrate measurable progress against NIS2 expectations without manual data gathering.

Instead of static spreadsheets, MSPs can give clients live compliance dashboards, a visible sign of progress that differentiates them from generic IT providers.

Step 6: Build a culture of shared security responsibility

NIS2 shifts accountability to leadership, but success depends on every team member.

MSPs should:

• Train staff on security awareness and reporting obligations.

• Test incident response plans quarterly.

• Involve clients in regular security reviews.

This not only strengthens your own readiness but also reinforces client trust.

Quick NIS2 compliance checklist for MSPs

Here’s a fast, actionable list you can use internally or share with clients:

Using enhanced.io, MSPs can automate much of this process, from data collection to compliance evidence.

What are the biggest NIS2 challenges for MSPs?

Many MSPs struggle with:

• Understanding which NIS2 requirements apply to them

• Translating compliance language into actionable processes

• Providing evidence across multiple clients

That’s where a managed security platform like enhanced.io helps. By centralising compliance reporting, threat detection and vulnerability management, MSPs can focus on growth instead of chasing paperwork.

How does enhanced.io make NIS2 reporting easy?

enhanced.io provides:

• Unified visibility: aggregate all client environments into one pane of glass.

• Automated evidence: collect and export compliance data instantly.

• Fractional expertise: access guidance from security directors familiar with NIS2.

• Client-ready dashboards: show measurable security improvements over time.

Each report aligns directly to NIS2 control areas, letting MSPs demonstrate exactly how they meet regulator expectations and client SLAs. This approach turns compliance from an administrative headache into a sales enabler, helping MSPs prove value, win contracts and retain clients in regulated sectors.

Key takeaways

NIS2 isn’t just another compliance hurdle, it’s a framework for better security and stronger client relationships. MSPs who embrace it early can lead the market, simplify audits and build trust in every engagement.

With enhanced.io’s audit-ready reporting and managed SOC capabilities, you can deliver measurable compliance outcomes without adding complexity, turning regulation into a catalyst for growth.