What MSP Leaders Are Telling Us: Four Strategic Takeaways for the Channel

The CRN MSP 500 ecosystem, including the Elite 150, Pioneer 250, and Security 100, provides a clear picture of how managed service providers see their businesses evolving. When you read the responses from MSP leaders across the profiles and interviews, four themes emerge consistently:

1. MSPs are becoming security operators
2. MSP profitability depends on automation and platform efficiency
3. AI is creating the next wave of MSP services
4. MSPs Win Through Standardization and Operational Efficiency

Together these themes describe a fundamental shift in the managed services industry, from IT support toward security-driven digital operations delivered at scale.

Note: This blog highlights the Pioneer 250 and Security 100 providers that focus on the SMB market. The Elite 150 focuses on larger enterprises, as do some Security 100 MSSPs: https://www.crn.com/rankings-and-lists/msp2026

1. MSPs Are Becoming Security Operators

The first and most consistent message across the CRN MSP ecosystem is that cybersecurity is no longer an add-on service. Instead, MSPs increasingly see security monitoring, detection, and response as the core function they provide to customers.

Rising cyber threats, regulatory pressure, and the lack of internal security teams inside SMB organizations are pushing customers to rely on MSPs as their primary security operators.

Several MSP leaders describe cybersecurity not as a one-time technology purchase but as an ongoing operational service.

• Anthony D’Ambrosi, CEO of Abacus Group, describes security as a continuous responsibility rather than a project:

“Security is a road clients must continuously journey.”— Anthony D’Ambrosi, CEO, Abacus Group

• Wayne Hunter, CEO of AvTek Solutions, highlights how rising cyber threats and regulatory requirements are directly driving customer demand for managed security services:

“Rising compliance and cybersecurity requirements are shaping demand.”— Wayne Hunter, CEO, AvTek Solutions

•  John Douglas, Chief Technology Officer at Pileus Technologies, emphasizes the role MSPs play in protecting customers who lack internal security teams:

“It will allow us to use that technology to protect our customers.”— John Douglas, CTO, Pileus Technologies

Together these comments illustrate a broader shift occurring across the MSP ecosystem. MSPs are moving beyond traditional IT support and evolving into managed security service providers (MSSPs) responsible for monitoring and protecting their customers’ environments around the clock.

For vendors supporting the channel, this means MSPs are looking for partners that enable them to operate security services efficiently, not simply sell them security products.

2. MSP Profitability Depends on Automation and Platform Efficiency

The second major theme that emerges from MSP commentary is operational efficiency. As MSPs expand their security services and customer base, they must deliver those services with limited technical staff.

This creates a fundamental requirement for automation and platform integration.

Many MSP leaders emphasize that automation is essential for scaling their businesses while maintaining profitability.

• John M. King, President of Millennium Group Computing, explains how automation enables his organization to operate more efficiently:

“AI allows us to streamline workflows and automate repetitive tasks.”— John M. King, President, Millennium Group Computing

• Ron Zapar, CEO of Re-Quest IT, highlights how automation directly impacts service economics:

“Automation allowed us to increase service value without raising costs.”— Ron Zapar, CEO, Re-Quest IT

• Tim Morris, CEO of Success Computer Consulting, reinforces the operational discipline required to scale a managed services business:

“We focus on the flow of work through the system.”— Tim Morris, CEO, Success Computer Consulting

These comments point to a central operational challenge for MSPs: delivering security and IT services to hundreds of customers without dramatically increasing headcount.

As a result, MSPs increasingly favor vendors that provide integrated platforms with automated operations, rather than point products that require manual management.

The vendors that succeed in the channel are those that help MSPs reduce operational complexity by delivering:

• centralized management
• automated investigation and remediation
• reduced alert volumes
• multi-tenant cloud platforms

In other words, MSPs are seeking technology partners that help them run a scalable services business.

3. AI Is Becoming the Next Major MSP Service Category

The third major theme appearing across the CRN MSP 500 ecosystem is the rapid emergence of AI as both an opportunity and a challenge for managed service providers.

Many MSP leaders note that customers are experimenting with AI technologies but often lack the expertise required to deploy them effectively. This creates a new opportunity for MSPs to provide consulting, implementation, and operational services related to AI.

However, MSP leaders also caution that customer expectations around AI are often unrealistic.

• Faisal Bhutto, CEO of Alykas Technologies, describes the disconnect between expectations and reality:

“Customers often expect AI to be magical, effortless, cheap, and DIY-ready.”— Faisal Bhutto, CEO, Alykas Technologies

• Josh Dinneen, CEO of Blue Mantis, observes that customers are moving beyond experimentation and focusing on measurable outcomes:

“Clients are shifting from AI testing to delivering measurable business outcomes.”— Josh Dinneen, CEO, Blue Mantis

• Kyle Lanzinger, President of Fulcrum IT Partners, sees the role of MSPs expanding in response to this shift:

“MSPs will evolve into managed intelligence providers.”— Kyle Lanzinger, President, Fulcrum IT Partners

These comments highlight a new phase in the MSP industry. AI is not simply another technology trend; it is becoming a major driver of service innovation.

MSPs are increasingly positioning themselves as advisors who help customers deploy AI responsibly, manage AI-driven infrastructure, and secure environments that now include AI workloads.

For cybersecurity vendors, this shift is particularly important because AI adoption will dramatically increase:

• data volumes
• security telemetry
• attack surfaces

As a result, MSPs will need security platforms that use AI to automate detection, reduce alert noise, and accelerate incident response.

4. MSPs Win Through Standardization and Operational Efficiency

The most consistent theme across SMB-focused MSPs is the need to deliver services to many small customers with limited technical staff. These MSPs emphasize operational discipline, automation, and standardized service packages.

• Tim Morris, CEO of Success Computer Consulting, describes this operational mindset clearly:

 “We focus on the flow of work through the system.” — Tim Morris, CEO, Success Computer Consulting

• Ron Zapar, CEO of Re-Quest IT, explains how automation directly affects service delivery economics:

“Automation allowed us to increase service value without raising costs.” — Ron Zapar, CEO, Re-Quest IT

• Matt Petronzio, CEO of Mantra Computing, explains how standardized pricing models help MSPs simplify operations and control service delivery costs:

“Predictable per-user, pricing simplified billing, and improved client retention.”— Matt Petronzio, CEO, Mantra Computing

What this means

For Pioneer 250 MSPs, the competitive advantage is not advanced consulting or specialized engineering. It is the ability to deliver consistent, reliable services at scale.

These MSPs prefer vendors that offer:

• simplified management platforms
• multi-tenant administration
• automated operations
• predictable service delivery

Their success depends on reducing operational complexity while supporting hundreds of SMB customers simultaneously.

The Big Picture

Taken together, the commentary from MSP leaders across the CRN ecosystem reveals a clear transformation underway in the managed services industry.

MSPs are evolving from traditional IT support providers into technology operators responsible for security, automation, and digital infrastructure management.

This transformation can be summarized as a shift from the traditional MSP model toward a new operational model.

The vendors that succeed in this new environment will be those that help MSPs deliver scalable, automated, and profitable security services to their customers.

For companies supporting the channel, the opportunity lies in enabling MSPs not just to sell technology, but to operate security and digital infrastructure as a service.