‘The market is massive, and the opportunities for MSPs are vast,’ says ConnectWise CEO Manny Rivelo. ‘Over 44 percent of the managed services market will go to SMBs, and it’s MSPs who provide the value that keeps these businesses running smoothly.’
That’s the message portrayed by Manny Rivelo as he spoke to a room full of MSPs at ConnectWise IT Nation EMEA in London on Monday.
“This is a community that helps each other and drives the success as you tell each other your best secrets and how to increase your profitability,” said Rivelo, CEO of the Tampa, Fla.-based vendor. “We’re not just selling technology, we’re empowering each other to drive revenue and grow businesses together.”
The convergence of AI and managed services promises to revolutionize the way businesses operate, according to Rivelo, and the ongoing digital transformation will soon ripple down to the SMB market.
[Related: ConnectWise CISO: 30 Percent Of All Ransomware Attacks Impact Europe]
“Imagine not having to manually handle hundreds or even thousands of endpoints,” he said. “AI agents will assist you in ways that were previously unimaginable, helping MSPs focus on higher-value tasks and driving profitability.”
With technology changing how companies operate, the MSP market itself is growing rapidly. Last year, the global managed services sector was valued at over $5 billion, representing nearly 5 percent of the global GDP (gross domestic product), with SMBs driving much of the demand.
“The market is massive, and the opportunities for MSPs are vast,” he said. “Over 44 percent of the managed services market will go to SMBs, and it’s MSPs who provide the value that keeps these businesses running smoothly.”
With every “major season of technology innovation,” there are people who predict that IT services will shrink but the market has always grown, said Peter Melby, CEO of Denver-based New Charter Technologies.
“When there is new innovation for our clients to adopt there will always been need for guidance, support and advisory,” Melby told CRN. “As long as we are innovating, we will be needed. We do not expect the industry to grow evenly across the market. Innovative companies and those providing deep, highly strategic services will win out. MSPs hoping to ride the wave of yesterday’s services are in for a rude awakening. There are more headwinds than we have seen in recent years, so the growth may not feel as easy as it has in the past, but it is there for those who are ready.”
Despite the market’s growth, MSPs still face significant challenges. According to Rivelo, about 3,000 ConnectWise partners revealed the top challenges faced by the industry are talent acquisition, operational efficiency, pricing strategies and cybersecurity concerns.
“The reality is MSPs often struggle to find the talent they need, and they need to figure out how to scale their businesses without increasing complexity,” he said. “It’s all about running a profitable business first and then figuring out how to grow.”
And the role of AI and automation in MSP operations is becoming crucial. AI-powered solutions, including security and cyber services, will be pivotal in supporting businesses and ensuring their protection against increasing threats.
“AI isn’t about solving everything with one tool, it’s about integrating multiple helper agents that assist MSPs in running their business more efficiently,” he said. “We’re moving into a new era, and it’s exciting to be part of a market that’s both evolving and expanding at such a rapid pace.”
