AI Drives MSP Success, U.S. AI Governance Changes, and Broadcom's VMware Partner Strategy Shift

Business of Tech: Daily 10-Minute IT Services Insights

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New data reveals a significant divide in the managed service provider (MSP) landscape, with AI and infrastructure maturity emerging as key factors distinguishing high-growth MSPs from their lower-growth counterparts. A report from JumpCloud indicates that while 89% of MSPs saw revenue growth in 2024, only 22% achieved high growth, defined as an increase of over 20%. Successful providers are characterized by their willingness to adopt new technologies and integrate artificial intelligence into their operations, which enhances efficiency and customer support. The managed services market is experiencing a surge, driven by advancements in AI and a wave of mergers and acquisitions, with over 100 deals surpassing $1 billion in disclosed value in the first quarter of 2025.

The U.S. Department of Commerce has renamed its AI Safety Institute to the Center for AI Standards and Innovation, shifting its focus towards national security and international AI standards. This change reflects a broader strategy to accelerate the growth of American AI companies while addressing risks such as cybersecurity and foreign influence. Meanwhile, the FDA has launched a generative AI tool named ELSA to streamline its regulatory processes, marking a significant step in integrating AI into government operations. Additionally, Texas is poised to join other states in implementing right to repair laws, promoting sustainability in electronics by mandating manufacturers to provide spare parts and manuals.

OpenAI has announced updates to ChatGPT, enhancing its functionality for professionals with features that allow integration with tools like email and cloud storage. These updates position ChatGPT as a more versatile option in a competitive landscape, while Anthropic has open-sourced a circuit tracing tool to improve understanding and control of large language models. Coro, a cybersecurity platform, has launched a new partner program aimed at enhancing partner profitability and growth, emphasizing a streamlined experience for small and medium-sized businesses.

Broadcom has made significant changes to its VMware Partner Program, reducing the number of authorized partners and restructuring tiers to focus on monetization and control rather than modernization. This shift raises concerns for partners who may find themselves at risk of being sidelined as Broadcom consolidates its market control. The evolving landscape underscores the importance for IT service providers to adapt to these changes, prioritize AI integration, and ensure that their offerings align with emerging regulatory frameworks and market demands.

Four things to know today

00:00 What Sets Top MSPs Apart in 2025? It’s Not Just Tools—It’s AI, Smarts, and Speed

05:13 AI Regulation Fractures Across U.S. as Federal, Agency, and State Agendas Diverge

08:28 ChatGPT, Anthropic, and Coro Show How AI Is Growing Up

11:25 Broadcom’s New VMware Plan? Fewer Partners, More Control

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