Vendors often fail MSPs by offering a single, generic certification path for all partners. MSPs require practical, operational guidance beyond basic product knowledge. This includes runbooks for common scenarios and specific training on managing a platform at scale across multiple customer tenants, not just deploying it once.

To grow beyond common revenue plateaus, MSPs must shift focus from their technology stack—which customers don't care about—to professional and managed services. Growth and margin come from selling solutions like managed cybersecurity or AI deployments, not from the specific tools used to deliver them.

Specialized AI clouds (NeoClouds) like CoreWeave emerged because hyperscalers' strengths—such as custom networking and security for multi-tenancy—were detrimental to the performance of large-scale, single-tenant AI workloads. This performance gap created a significant market opening.

Providers like Lightning AI (NeoClouds) must build for unpredictable, diverse customer workloads. This is harder than building for a single, known purpose like OpenAI does for its own engineers. NeoClouds require more performance headroom and robust multi-tenancy architecture to handle any task a customer might run.

Don't try to compete with hyperscalers like AWS or GCP on their home turf. Instead, differentiate by focusing on areas they inherently neglect, such as multi-cloud management and hybrid on-premise integration. The winning strategy is to fit into and augment a customer's existing cloud strategy, not attempt to replace it.

Contrary to the push for single-vendor platforms or the chaos of unlimited tools, a Canalys study reveals a clear preference among MSPs. They want to manage a "sweet spot" of seven to ten vendors, balancing diversification and specialization without succumbing to overwhelming tool sprawl.

MSPs operate on thin margins and need solutions that improve their bottom line and increase their company's sale value. Instead of leading with tech specs, vendors should focus on how their partnership boosts Annual Recurring Revenue (ARR) and EBITDA, which directly multiplies an MSP's valuation.

Applying a traditional reseller model to MSPs fails because their economics differ. MSPs need predictable, aggregated volume-based pricing to operate with agility, rather than fluctuating per-deal costs. A fit-for-purpose program must also redesign support, billing, and legal frameworks around the MSP's business model.

While the market rushed to pure-cloud solutions, Egnyte offered a hybrid model. This wasn't a compromise but a strategic advantage for enterprises where physics, like network latency on a construction site, made pure-cloud impractical. The control plane remained in the cloud, while the data plane could be local.