Business of Tech: Daily 10-Minute IT Services Insights

The Future of MSPs: Adapting to Big Business Trends, Leadership Changes, and AI Advancements

Feb 15, 2025

Nelson Gomes, CEO of Portalia Group and seasoned MSP leader, delves into the shifting landscape of managed service providers as larger companies dominate the job market. He stresses the need for MSPs to recalibrate their sales focus towards bigger businesses and adapt their digital marketing strategies. The conversation highlights the challenges posed by tech giants and leadership changes within major MSP platforms like ConnectWise and Kaseya, suggesting these shifts could drive innovation in the industry.

31:10

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Episode guests

Nelson Gomes

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Episode notes

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Quick takeaways

MSPs must shift their focus to larger businesses as over 53% of Americans are now employed by firms with 500 or more employees.

Leadership changes within major MSP platforms can foster innovation and new strategies, highlighting the necessity for adaptability in the evolving industry.

Deep dives

Shift in American Business Landscape

Recent data indicates a significant shift in the employment landscape, with more Americans now working for larger companies than before. Historically, many individuals were employed by businesses with fewer than 500 employees, but this trend has reversed, with over 53% now employed by larger organizations. This change suggests that managed service providers (MSPs) may need to adjust their strategies, focusing more on larger firms as potential clients rather than predominantly smaller businesses. As consolidation in the market continues, understanding this demographic shift is essential for MSPs seeking to thrive.

Intro

4min

Evolving MSP Landscape

16min

AI in IT Services: Balancing Innovation and Human Touch

7min

Bridging the Technology Gap in MSP Services

2min

Engagement and Insights on Specialized Cybersecurity Services

2min

Navigating MSSP Strategies and Consumer Security Concerns

2min

Nelson Gomes, CEO of Portalia Group and former MSP, discusses the evolving landscape of managed service providers (MSPs) in light of recent data indicating a shift in the American workforce towards larger businesses. With 53% of Americans now employed by companies with 500 or more employees, Gomes emphasizes the need for MSPs to pivot their sales strategies to target larger organizations rather than relying solely on small businesses. He notes that while the small business sector has traditionally been viewed as the backbone of the economy, the data suggests a significant consolidation trend that MSPs must adapt to.

The conversation also touches on the impact of big tech platforms like Facebook, Amazon, and Google on small businesses, highlighting the challenges these companies face in leveraging these platforms for advertising and sales. Gomes suggests that MSPs should not only recognize these challenges but also find ways to leverage these platforms to their advantage. He advocates for a shift towards digital marketing strategies, particularly for smaller MSPs, to enhance their outreach and client acquisition efforts.

Leadership changes at major MSP platforms, such as ConnectWise and Kaseya, are also discussed. Gomes views these changes as a natural evolution within the industry, suggesting that new leadership can bring fresh perspectives and innovations that ultimately benefit MSPs. He believes that both ConnectWise and Kaseya will continue to compete vigorously, with each offering unique advantages that MSPs can leverage to improve their service delivery and profitability.

Finally, Gomes highlights the recent acquisition of Orchestrate AI Labs by New Charter Technologies, which aims to integrate artificial intelligence into their service offerings. He praises this move as a forward-thinking strategy that allows MSPs to develop proprietary solutions rather than relying on third-party vendors. This acquisition reflects a broader trend in the industry where MSPs are increasingly investing in technology to enhance their service capabilities, ultimately positioning themselves to better meet the evolving needs of their clients.

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