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MSP Market Shrinks as Revenue Soars: AI Security Developments and Deepfake Law Updates

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Manage episode 504466737 series 2555839
Content provided by Big Pond Podcasts and MSP Radio. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Big Pond Podcasts and MSP Radio or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

The managed services provider (MSP) market is experiencing a paradoxical trend where revenue is increasing while the number of providers is decreasing. According to Canalys data, global managed services revenue surpassed half a trillion dollars in 2024, reflecting a year-over-year growth of 9.7%. However, the number of channel partners has slightly declined by 0.6%, with large MSPs rapidly acquiring smaller ones. This consolidation trend has led to a significant shift in the market dynamics, where smaller MSPs struggle to compete against larger firms that possess superior resources and pricing power.

To survive in this competitive landscape, smaller MSPs must adopt focused strategies, targeting specific customer segments or industries. By doing so, they can achieve higher profit margins, with specialized MSPs reporting EBITDA percentages between 15% to 30%, compared to just 7% for those lacking focus. The article emphasizes that smaller MSPs have several options: they can sell to larger firms, acquire smaller peers, focus on niche markets, or leverage partnerships to remain competitive. The reality is that the middle tier of MSPs is rapidly disappearing, and those who attempt to serve everyone may find themselves at a disadvantage.

In addition to the MSP market dynamics, the podcast discusses recent legislative developments, including Michigan's new laws addressing deepfakes, which make it illegal to create AI-generated sexual imagery without consent. This reflects a growing trend across the U.S. to combat nonconsensual abuse imagery, with most states now having similar laws. Furthermore, the U.S. Treasury has imposed sanctions on individuals and entities linked to North Korea's illicit IT worker schemes, highlighting the security risks posed by fraudulent practices in the tech industry.

The episode also covers the latest advancements in AI-powered security solutions from various vendors, including Thrive, Addigy, Arctic Wolf, and Acronis. These companies are rolling out new services and products designed to enhance security operations and protect data. The overarching theme is that as technology evolves, the risks associated with it are also increasing, and IT service providers must adapt to these changes by offering value-added services that help clients navigate the complexities of compliance and security in a rapidly changing environment.

Four things to know today

00:00 MSP Market Expands to $500B as Provider Count Shrinks Amid Rapid Consolidation

04:10 From Abuse Imagery to Supply Chain Threats, Regulation Struggles to Keep Up With Emerging Risks

07:45 AI Everywhere: Thrive, Security Vendors, OpenAI, and Microsoft Redefine Service Provider Playbook

12:39 D&H and Nutanix Growth Signals Services-Led Future as Distributors and Vendors Push Into MSP Territory

This is the Business of Tech.

Supported by: https://scalepad.com/dave/

https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

All our Sponsors: https://businessof.tech/sponsors/

Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/

Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/

Support the show on Patreon: https://patreon.com/mspradio/

Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech

Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com

Follow us on:

LinkedIn: https://www.linkedin.com/company/28908079/

YouTube: https://youtube.com/mspradio/

Facebook: https://www.facebook.com/mspradionews/

Instagram: https://www.instagram.com/mspradio/

TikTok: https://www.tiktok.com/@businessoftech

Bluesky: https://bsky.app/profile/businessof.tech

  continue reading

1744 episodes

Artwork
iconShare
 
Manage episode 504466737 series 2555839
Content provided by Big Pond Podcasts and MSP Radio. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Big Pond Podcasts and MSP Radio or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

The managed services provider (MSP) market is experiencing a paradoxical trend where revenue is increasing while the number of providers is decreasing. According to Canalys data, global managed services revenue surpassed half a trillion dollars in 2024, reflecting a year-over-year growth of 9.7%. However, the number of channel partners has slightly declined by 0.6%, with large MSPs rapidly acquiring smaller ones. This consolidation trend has led to a significant shift in the market dynamics, where smaller MSPs struggle to compete against larger firms that possess superior resources and pricing power.

To survive in this competitive landscape, smaller MSPs must adopt focused strategies, targeting specific customer segments or industries. By doing so, they can achieve higher profit margins, with specialized MSPs reporting EBITDA percentages between 15% to 30%, compared to just 7% for those lacking focus. The article emphasizes that smaller MSPs have several options: they can sell to larger firms, acquire smaller peers, focus on niche markets, or leverage partnerships to remain competitive. The reality is that the middle tier of MSPs is rapidly disappearing, and those who attempt to serve everyone may find themselves at a disadvantage.

In addition to the MSP market dynamics, the podcast discusses recent legislative developments, including Michigan's new laws addressing deepfakes, which make it illegal to create AI-generated sexual imagery without consent. This reflects a growing trend across the U.S. to combat nonconsensual abuse imagery, with most states now having similar laws. Furthermore, the U.S. Treasury has imposed sanctions on individuals and entities linked to North Korea's illicit IT worker schemes, highlighting the security risks posed by fraudulent practices in the tech industry.

The episode also covers the latest advancements in AI-powered security solutions from various vendors, including Thrive, Addigy, Arctic Wolf, and Acronis. These companies are rolling out new services and products designed to enhance security operations and protect data. The overarching theme is that as technology evolves, the risks associated with it are also increasing, and IT service providers must adapt to these changes by offering value-added services that help clients navigate the complexities of compliance and security in a rapidly changing environment.

Four things to know today

00:00 MSP Market Expands to $500B as Provider Count Shrinks Amid Rapid Consolidation

04:10 From Abuse Imagery to Supply Chain Threats, Regulation Struggles to Keep Up With Emerging Risks

07:45 AI Everywhere: Thrive, Security Vendors, OpenAI, and Microsoft Redefine Service Provider Playbook

12:39 D&H and Nutanix Growth Signals Services-Led Future as Distributors and Vendors Push Into MSP Territory

This is the Business of Tech.

Supported by: https://scalepad.com/dave/

https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

All our Sponsors: https://businessof.tech/sponsors/

Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/

Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/

Support the show on Patreon: https://patreon.com/mspradio/

Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech

Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com

Follow us on:

LinkedIn: https://www.linkedin.com/company/28908079/

YouTube: https://youtube.com/mspradio/

Facebook: https://www.facebook.com/mspradionews/

Instagram: https://www.instagram.com/mspradio/

TikTok: https://www.tiktok.com/@businessoftech

Bluesky: https://bsky.app/profile/businessof.tech

  continue reading

1744 episodes

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