Despite high enthusiasm for AI as a growth driver, an MIT study reveals a staggering 95% failure rate for deployments. The primary cause is not the technology itself, but the lack of proper security, compliance, and governance frameworks, presenting a critical service opportunity for MSPs.
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.
The MSP community operates on a "rising tide lifts all ships" principle. Instead of struggling with in-house skill gaps for new technologies like AI, MSPs are encouraged to find and outsource to other MSPs with the needed expertise, marking up the service for a profit without direct investment in hiring.
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.
The traditional MSP 2.0 model of reselling software seats is no longer profitable. The next evolution, MSP 3.0 or "BSP" (Business Solutions Provider), focuses on consulting and managed services to solve core business problems, shifting the revenue source from software margins to service-based value.