Business of Tech: Daily MSP News & IT Services Analysis

MSP Radio, Dave Sobel, Managed Service Provider (MSP) Industry Analyst
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Vendors are rewriting the rules on MSPs faster than anyone can track — pricing, partner programs, liability, and now AI. Business of Tech is the daily MSP news briefing that tells you what changed and what it means for your business. Every weekday, channel veteran Dave Sobel picks the MSP and IT services news that actually moves your margins, contracts, and risk, and answers the one question that matters: Why do we care? No vendor cheerleading and no press-release rewrites — independent analysis for managed service providers, IT services leaders, and the vendors who sell to them. Short daily episodes keep you current in about 15 minutes. Longer interviews go deep with MSP owners, investors, analysts, and channel executives on where the managed services market is heading. What this MSP podcast covers: • AI for MSPs — AI pricing and consumption billing, AI liability and governance, and AI agents in the service desk • MSP pricing and profitability — per-user vs. usage-based pricing, margins, service agreements, and vendor rebates • MSP M&A and private equity — acquisitions, roll-ups, valuations, and what consolidation means for independent MSPs • MSP vendors and partner programs — Microsoft, Kaseya, ConnectWise, N-able, Pax8, and how channel programs shift risk onto providers • MSP cybersecurity and liability — cyber insurance, compliance, regulation, and the security-stack decisions that expose a managed service provider • MSP operations — automation, PSA and RMM, hiring, and the operational maturity that separates growing MSPs from stalled ones Questions we answer: • How should an MSP price AI services when vendors move to consumption billing? • Who carries the liability when AI acts inside a client environment? • What does private equity consolidation mean for MSP valuations? • Which vendor partner program changes quietly cut MSP margins? • What do insurers and regulators now expect from managed service providers? Business of Tech is produced by MSP Radio, the independent media company for the managed services and IT channel community. Hosted by Dave Sobel, MSP industry analyst and longtime channel veteran. Written versions of every episode, with full source links, at businessof.tech.

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  1. 2d ago

    AI for MSPs: The Price You're Quoting Is Borrowed

    AI service pricing for managed IT services is increasingly unstable due to manufacturers’ ability to change subscription deliverables and costs unilaterally. OpenAI’s reduction of its $200 plan benefits and the shifting terms in leading AI offerings, noted by SemiAnalysis and Omdia’s analysts, exemplify how MSPs risk absorbing margin losses when vendor pricing changes are passed downstream with little notice or warning. SemiAnalysis found that leading AI subscription services are often subsidized, using more infrastructure than they generate in direct revenue, with Gartner projecting a $5 trillion gap between required AI infrastructure investment and realistic revenue through 2030. The sustainability of current AI pricing is questionable, and over 80% of smaller AI cloud providers are expected to lose independence in this period. These developments elevate margin and continuity risks throughout the services ecosystem. Market data from Omdia indicates only 20% of North American partners have the maturity to productively monetize AI services, while most AI work remains experimental or internally focused. Some MSPs have bundled AI into flat fees without contract triggers for cost changes, exacerbating the risk. Techaisle’s data shows buyers’ top frustration is “bill shock” as token-based AI pricing remains volatile and unpredictable. For MSPs and IT leaders, the implication is growing vendor dependency and contract risk. Flat-fee AI bundles expose service providers to sudden margin erosion if manufacturers alter price or service conditions. Practical risk mitigation includes writing re-opener clauses and escalation triggers into contracts, charging separately for data readiness, and avoiding open-ended pilots. The benchmark should focus on contractual flexibility and risk allocation, not initial price alone. 00:00 AI Services Grow, Prices Don’t Settle  03:38 Why Today’s AI Price Is Borrowed 06:43 Price It Now, Write It to Reopen 10:00 Why Do We Care? Supported by:  Guardz ScalePad  NinjaOne On-Demand Webinar: https://go.businessof.tech/p/ninjaone-pod   About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio. 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Firetail · HaloPSA · LogMeIn · Mailprotector · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI Supporting the IT services community through insights, analysis, and transparency. 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more. 👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story? 📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories? Every episode script — with full source links — is posted at: 🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily MSP News & IT Services Analysis 💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079 YouTube: https://youtube.com/mspradio Bluesky: https://bsky.app/profile/businessof.tech Instagram: https://www.instagram.com/mspradio TikTok: https://www.tiktok.com/@businessoftech Facebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

    AI for MSPs: The Price You're Quoting Is Borrowed

  2. 3d ago

    MSP profitability: Market splits as some MSPs stagnate — Jessica Davis, Omdia

    The episode highlights a structural split within the managed services market, defined by how different segments are responding to rising economic uncertainty, AI experimentation, and shifting revenue expectations. Omdia’s recent partner sentiment polls reveal a divergence: approximately 44% of channel partners expect their revenue to fall, while 41% anticipate growth—signaling a bifurcation rather than a broad recession. The episode identifies this as a period of market stress with implications similar to the post-2008 transition from break-fix to recurring revenue, but now driven by new pressures and emerging technologies such as AI. Key evidence centers on AI-related services, where Omdia reported around 60% growth, concentrated among a minority of advanced MSPs, compared to roughly 10% for managed services overall. This growth remains experimental, with most providers currently using AI to drive internal efficiencies rather than as client-facing offerings. The ongoing uncertainty around how AI capabilities will be priced and delivered through the MSP channel mirrors previous transitions—such as the shift to cloud licensing—where price-setting power and business models were contested between vendors and service providers. Supporting developments discussed include new funding models entering the acquisition market, such as E4N’s family office–backed approach, as well as ongoing activity among larger MSP roll-ups like Evergreen and Shield. These capital trends emphasize client relationships and patience over scale, according to public statements, countering assumptions that size alone drives value. There is increased focus on data ownership and operational analytics, including vendors requesting detailed operating data before acquisition or onboarding, and concerns that future automation may reduce the depth or accessibility of provider-held data. Operationally, MSPs are advised to focus on understanding and preserving the value of their client relationships and operational data. Uncertainty around AI implementation, pricing models, and data retention introduces new governance risks and requires providers to remain flexible. Smaller and mid-sized MSPs must critically assess their own business metrics and data while tracking how vendors might eventually control pricing and market direction, recognizing that decisions made during this period of experimentation may affect future operational autonomy and valuation. MSP Acquisitions Zero Private Equity What The 20 Already Knew Supported by:GoTo(LogMeIn)Pax8GuardzNinjaOne On-Demand Webinar: https://go.businessof.tech/p/ninjaone-pod About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio. 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Firetail · HaloPSA · LogMeIn · Mailprotector · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI Supporting the IT services community through insights, analysis, and transparency. 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more. 👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story? 📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories? Every episode script — with full source links — is posted at: 🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily MSP News & IT Services Analysis 💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079 YouTube: https://youtube.com/mspradio Bluesky: https://bsky.app/profile/businessof.tech Instagram: https://www.instagram.com/mspradio TikTok: https://www.tiktok.com/@businessoftech Facebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

    MSP profitability: Market splits as some MSPs stagnate — Jessica Davis, Omdia

  3. 4d ago

    MSP Hardware Refresh: Waiting Doesn't Cancel the Bill

    Rising component costs and shrinking PC shipments are driving a shift toward longer device lifecycles and complicating replacement planning for MSPs. According to Omdia and IDC, global shipments of desktops, notebooks, and workstations have dropped over 20% year over year, driven by higher average prices—especially for memory and storage, which now make up close to 40% of device component costs. Vendors like Gigabyte and AMD are reintroducing DDR4-era hardware to address cost pressures, while memory suppliers such as Micron report sharply increased revenues despite fewer units sold. The evidence shows a clear disconnect: as overall hardware purchases decline, memory and flash costs surge, and end clients keep older hardware in service longer, deferring refreshes. Texas’s Legislative Budget Board notes that supporting PCs beyond four years increases hidden costs and failure rates. At the same time, data from Buchanan Technologies reveals that most user problems aren’t reported—82% of employees have decided IT issues aren’t worth submitting as tickets. Automated resolution is increasing as well, with HPE reporting that up to 80% of network tickets are now closed without manual intervention. These developments reinforce the central risk: aging fleets and invisible friction in end user experience make traditional support metrics unreliable for refresh planning. Channel leaders and analysts disagree on hardware buying strategies, citing supply volatility, geopolitics, and unpredictable pricing as ongoing challenges. MSPs and IT leaders face higher operational risk if they rely solely on ticket reports and delay lifecycle planning. Practical mitigation includes focusing on fleet age, warranty status, and unreported device friction in client conversations—building transparency and comparing proactive replacement costs to budgeted extension risks. Failing to do so risks forced, out-of-cycle purchases at unfavorable prices driven by market conditions rather than strategic planning. 00:00 PC Sales Fall as Memory Costs Soar  04:10 Where an Aging Fleet’s Cost Hides 06:34 Refresh Now or Extend on Purpose 09:41 Why Do We Care?   Supported by:  ScalePad Pax8  NinjaOne On-Demand Webinar: https://go.businessof.tech/p/ninjaone-pod About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio. 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Firetail · HaloPSA · LogMeIn · Mailprotector · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI Supporting the IT services community through insights, analysis, and transparency. 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more. 👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story? 📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories? Every episode script — with full source links — is posted at: 🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily MSP News & IT Services Analysis 💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079 YouTube: https://youtube.com/mspradio Bluesky: https://bsky.app/profile/businessof.tech Instagram: https://www.instagram.com/mspradio TikTok: https://www.tiktok.com/@businessoftech Facebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

    MSP Hardware Refresh: Waiting Doesn't Cancel the Bill

  4. 5d ago

    AI for MSPs: Nobody Is Counting the Cleanup

    A central structural development is the shift of verification, remediation, and risk management responsibilities from AI vendors to downstream parties, notably MSPs and their clients. Companies like OpenAI and Anthropic are issuing large volumes of AI-generated outputs—ranging from research papers to vulnerability reports—without thorough internal vetting, pushing the burden of review and potential incident response onto service providers and end-users. OpenAI released 722 AI-generated mathematics manuscripts, acknowledging that many lack formal verification and that only about 40% include machine-checkable proofs, according to The Verge. Researchers note the process of verifying these outputs could take years. Similarly, Anthropic’s OSS scanner has produced over 6,000 vulnerability reports, but only about 10% have been patched upstream, meaning the majority of validation and remediation falls to maintainers or receiving organizations. This downstream shift is affecting technical communities and service providers alike. The Linux kernel project faces an “unmanageable” stream of duplicative AI-generated bug reports, with Linus Torvalds calling much of it wasted effort. MSPs are encountering new operational loads as clients connect AI assistants like ChatGPT to shared files, leading to data exposures and increased permissions cleanup—tasks for which vendors accept no responsibility. Operationally, MSPs face increased margin pressure and are forced to absorb or account for the unplanned labor associated with AI-driven incidents. The risk is that providers who fail to measure and communicate these costs will see their profitability erode, while clients remain unaware of the true operational impact of their AI usage. Explicitly quantifying and attributing these burdens allows MSPs to establish clearer terms and avoid being the unpaid verification layer for upstream vendors.00:00 Seven Hundred Papers, Nobody Checking  04:04 Cheap to Make, Costly to Check 06:37 The Cleanup Lands On You 09:46 Why Do We Care? Supported by:  ScalePad HaloPSA CouchDrop.io NinjaOne On-Demand Webinar: https://go.businessof.tech/p/ninjaone-pod   About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio. 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Firetail · HaloPSA · LogMeIn · Mailprotector · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI Supporting the IT services community through insights, analysis, and transparency. 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more. 👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story? 📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories? Every episode script — with full source links — is posted at: 🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily MSP News & IT Services Analysis 💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079 YouTube: https://youtube.com/mspradio Bluesky: https://bsky.app/profile/businessof.tech Instagram: https://www.instagram.com/mspradio TikTok: https://www.tiktok.com/@businessoftech Facebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

    AI for MSPs: Nobody Is Counting the Cleanup

  5. 6d ago

    MSP cybersecurity: Fixed budgets can't cover school needs — Bryan Lukralle, CharterTS

    The episode reveals a governance gap between mounting cybersecurity requirements and the operational realities facing MSPs serving charter schools and nonprofits. Charter Technology Solutions (CTS) exemplifies how regulatory mandates, cyber insurance controls, and evolving client demands confront fixed budgets and unique seasonal workloads in mission-driven verticals. Addressing these pressures necessitates major adaptations to vendor licensing models and new service design approaches to maintain basic security. CTS reports managing over 100 school clients, deploying a lean security stack focused on MDR (addressing endpoint and cloud threats), email security, security awareness training, and cloud backup. This shortlist stems from the need to balance cost with non-negotiable protections, achieved partly by negotiating with vendors to exclude student accounts from licensing fees. Despite these efforts, only around half of CTS’s clients adopt the full cybersecurity package, reflecting financial tradeoffs and limited internal resources at schools. Operational adjustments support these constraints, including shifting permanent staff roles seasonally to meet heavy summer project demand and relying on short internships to scale device provisioning. MFA adoption remains problematic due to client concerns about teacher burden and the technical challenges of securing student accounts. The episode also highlights a rising risk area: ad hoc adoption of AI tools by clients without adequate access controls, leading to sensitive data exposure through weak permissions. For MSPs, these dynamics mean risk cannot be reduced through technology alone. Accountability for client decision-making, flexible contracts, and persistent education are necessary, especially when client governance lags technical change. The need to negotiate or customize vendor agreements adds contract risk, while unmanaged use of new technologies like AI introduces operational complexity and liability exposures that MSPs must track and address proactively.Supported by:Pax8MailprotectorNinjaOne On-Demand Webinar: https://go.businessof.tech/p/ninjaone-pod  About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio. 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Firetail · HaloPSA · LogMeIn · Mailprotector · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI Supporting the IT services community through insights, analysis, and transparency. 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more. 👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story? 📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories? Every episode script — with full source links — is posted at: 🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily MSP News & IT Services Analysis 💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079 YouTube: https://youtube.com/mspradio Bluesky: https://bsky.app/profile/businessof.tech Instagram: https://www.instagram.com/mspradio TikTok: https://www.tiktok.com/@businessoftech Facebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

    MSP cybersecurity: Fixed budgets can't cover school needs — Bryan Lukralle, CharterTS

  6. Oct 9

    MSP+ v. Bielanski: The Roll-Up Paperwork That Didn't Match

    The episode highlights the risk of documentation mismatches and liability transfer within MSP mergers and acquisitions, using the example of MSP+—a consultancy formed by the 2023 merger of five advisory firms. Unclear responsibility for a $700,000 SBA loan and conflicting financial representations during the merger process led to litigation, underscoring how misaligned documents can result in legal and financial exposure. The central development is MSP+ suing its former CEO Adam Bielanski, his wife, and related companies, alleging misrepresented financials and inappropriate transfer of debt. Court documents reveal that while the merger agreement designated the loan as company debt, the actual borrower was not part of the merger, leading to stopped payments, a loan default, and both parties seeking damages and reimbursement in federal court. Supporting cases include disputes over projected recurring revenue, disagreements on deferred pay, and claims of deleted or misused company data. Vendor program dependency also played a role: the end of ConnectWise Advantage eliminated a key revenue source, showing how third-party program changes can disrupt business plans and valuation. For MSPs and IT leaders, the practical lesson is the need for precise, accurate documentation and clear agreements on debts, compensation, and asset transfers. Reliance on external programs for revenue and lack of solid data retention policies increase operational risk, making comprehensive documentation and governance essential to avoid similar disputes and liabilities.00:00 MSP+ v. Bielanski: The Roll-Up Paperwork That Didn't Match  05:22 The Complaint and the Countersuit 12:47 Why Do We Care?   Supported by:  Pax8 ScalePad    NinjaOne On-Demand Webinar: https://go.businessof.tech/p/ninjaone-pod   About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio. 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Firetail · HaloPSA · LogMeIn · Mailprotector · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI Supporting the IT services community through insights, analysis, and transparency. 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more. 👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story? 📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories? Every episode script — with full source links — is posted at: 🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily MSP News & IT Services Analysis 💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079 YouTube: https://youtube.com/mspradio Bluesky: https://bsky.app/profile/businessof.tech Instagram: https://www.instagram.com/mspradio TikTok: https://www.tiktok.com/@businessoftech Facebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

    MSP+ v. Bielanski: The Roll-Up Paperwork That Didn't Match

  7. Oct 8

    Vendor Rebates Move to AI Growth—Anurag Agrawal Details the Margin Fallout for MSPs

    Vendor incentive structures are undergoing a significant realignment, shifting both margin pressure and financial risk toward MSPs and IT service providers. Microsoft’s recent policy change—eliminating flat CSP renewal rebates as of October 1 in favor of rewarding seat growth and AI workload adoption—directly illustrates this trend. Techaisle’s survey of 5,450 partners highlights the disconnect: 72% of incentive payouts occur at deal close, but 41% of MSP revenue is linked to renewals, pushing long-term margin risk downstream to the provider. Evidence from Techaisle shows traditional partner categories (VAR, MSP, SI) no longer predict operational models. Instead, providers are moving toward roles such as data orchestrators and AI outcome underwriters, each with new risk profiles. The episode underscores that incentive programs are often misaligned: co-sell rewards remain inconsistent, partner-to-partner deal mechanics are unsupported, and marketplace participation erodes margins for many providers. Profitability and predictability continue to be cited as leading concerns. Secondary findings deepen these risks. Three-quarters of partners already use AI in daily operations, outpacing vendor support and enablement efforts. Over half of SMB buyers use generative AI tools to start vendor searches, and only 4% of small businesses manage privileged non-human identities. These factors expand the governance and security gap, while token-based AI pricing introduces billing unpredictability and customer dissatisfaction. Research indicates 35% of SMBs are ready to change providers if their AI needs are not met. For MSPs and IT leaders, this environment results in tighter margins, unpredictable compensation, and accelerated churn risk without a defined AI offering. Providers must update service models, clarify AI use cases and pricing, and address security and identity risks—especially around non-human agents—to remain credible and competitive. Reviewing contracts, marketplace involvement, and program alignment is advised, as more responsibility for outcomes and risk is shifting steadily from vendors to service providers.   Supported by:GoTo(LogMeIn)WebPros (CometBackup)Pax8NinjaOne On-Demand Webinar: https://go.businessof.tech/p/ninjaone-pod About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio. 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Firetail · HaloPSA · LogMeIn · Mailprotector · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI Supporting the IT services community through insights, analysis, and transparency. 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more. 👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story? 📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories? Every episode script — with full source links — is posted at: 🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily MSP News & IT Services Analysis 💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079 YouTube: https://youtube.com/mspradio Bluesky: https://bsky.app/profile/businessof.tech Instagram: https://www.instagram.com/mspradio TikTok: https://www.tiktok.com/@businessoftech Facebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

    Vendor Rebates Move to AI Growth—Anurag Agrawal Details the Margin Fallout for MSPs

  8. Oct 5

    Brian J. Weiss: TechStack, Tenant Control, and Redefining PSA Ownership for MSPs

    The episode highlights a structural shift toward MSPs considering custom-built operational core systems on enterprise platforms, rather than relying purely on traditional packaged PSA (Professional Services Automation) vendors. This approach is illustrated by ITECH Solutions’ decision to migrate from a legacy PSA system—augmented by multiple third-party tools—to a platform built on Microsoft Dynamics, leveraging TechStack as a custom layer for MSP functionality. A key development discussed is ITECH Solutions’ experience with the limitations of existing PSAs. According to Brian J. Weiss, the lack of mature APIs and aging software architectures led to workflow inefficiencies and cumbersome tool proliferation. By selecting Microsoft Dynamics and partnering with TechStack, ITECH Solutions aimed to build a purpose-built, role-based system without maintaining a full in-house development team. Weiss described this as a hybrid model: Dynamics provides the core enterprise environment, TechStack develops the MSP-focused PSA features, and ITECH Solutions manages its own customizations, all within their own Microsoft tenant. Supporting details reinforce the complexity and risk profile of this approach. Customization introduces three operational layers: Microsoft’s base (with ongoing feature releases), TechStack’s PSA-specific additions, and further MSP-specific custom work, all requiring maintenance and version management. The cost structure relies on Microsoft partner licensing and as-yet-undetermined pricing for TechStack’s development and support. While automation and workflow adherence are key selling points, Weiss noted that operational maturity—including process standardization and thorough documentation—is a prerequisite for success with this model; smaller MSPs or those with incomplete processes may face difficulties replicating the approach. For MSPs and IT leaders, the implications revolve around vendor dependency, operational complexity, and governance oversight. Relying on multiple layers (Microsoft, TechStack, and in-house customization) adds resilience against single-vendor lock-in but shifts accountability for support, updates, and platform stability. Contractual risk increases as MSPs must track not just vendor but also tenant-layer modifications and integrations. While this structure offers customization and data control, it requires MSPs to have strong internal processes and governance frameworks to avoid operational drift or unintended consequences from layered system changes.Supported by: ScalePadTimeZest NinjaOne On-Demand Webinar: https://go.businessof.tech/p/ninjaone-pod  About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio. 💼 All Our SponsorsMSP Radio is supported by our partners: ABC Solutions · CometBackup · Firetail · HaloPSA · LogMeIn · Mailprotector · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI Supporting the IT services community through insights, analysis, and transparency. 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more. 👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story? 📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories? Every episode script — with full source links — is posted at: 🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily MSP News & IT Services Analysis 💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079 YouTube: https://youtube.com/mspradio Bluesky: https://bsky.app/profile/businessof.tech Instagram: https://www.instagram.com/mspradio TikTok: https://www.tiktok.com/@businessoftech Facebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

    Brian J. Weiss: TechStack, Tenant Control, and Redefining PSA Ownership for MSPs
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Vendors are rewriting the rules on MSPs faster than anyone can track — pricing, partner programs, liability, and now AI. Business of Tech is the daily MSP news briefing that tells you what changed and what it means for your business. Every weekday, channel veteran Dave Sobel picks the MSP and IT services news that actually moves your margins, contracts, and risk, and answers the one question that matters: Why do we care? No vendor cheerleading and no press-release rewrites — independent analysis for managed service providers, IT services leaders, and the vendors who sell to them. Short daily episodes keep you current in about 15 minutes. Longer interviews go deep with MSP owners, investors, analysts, and channel executives on where the managed services market is heading. What this MSP podcast covers: • AI for MSPs — AI pricing and consumption billing, AI liability and governance, and AI agents in the service desk • MSP pricing and profitability — per-user vs. usage-based pricing, margins, service agreements, and vendor rebates • MSP M&A and private equity — acquisitions, roll-ups, valuations, and what consolidation means for independent MSPs • MSP vendors and partner programs — Microsoft, Kaseya, ConnectWise, N-able, Pax8, and how channel programs shift risk onto providers • MSP cybersecurity and liability — cyber insurance, compliance, regulation, and the security-stack decisions that expose a managed service provider • MSP operations — automation, PSA and RMM, hiring, and the operational maturity that separates growing MSPs from stalled ones Questions we answer: • How should an MSP price AI services when vendors move to consumption billing? • Who carries the liability when AI acts inside a client environment? • What does private equity consolidation mean for MSP valuations? • Which vendor partner program changes quietly cut MSP margins? • What do insurers and regulators now expect from managed service providers? Business of Tech is produced by MSP Radio, the independent media company for the managed services and IT channel community. Hosted by Dave Sobel, MSP industry analyst and longtime channel veteran. Written versions of every episode, with full source links, at businessof.tech.

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