Managed service providers (MSPs) have one job: Deliver great service to their clients. But the way they go about it is changing. Whereas previously MSPs could have gone through a traditional digital distributor to purchase and provision solutions, they\u2019re increasingly choosing cloud marketplaces for the choice benefits they get\u2014namely, making their jobs a lot easier.<\/p>\n
Change in the IT industry isn\u2019t new. But the pace we\u2019re seeing now? That\u2019s different.<\/p>\n
The IT channel is in the middle of its biggest transformation yet. MSP revenue is projected to grow 13% in 2025<\/a>, reaching $595 billion globally\u2014but growth alone won\u2019t guarantee success. The landscape is shifting fast. Buyers expect more. Technology is evolving overnight. Competition is sharper than ever.<\/p>\n And MSPs are feeling this shift firsthand. Buyers are changing, and business models are adapting to the point where traditional ways of operating aren\u2019t keeping up. The old playbook\u2014where MSPs could resell licenses, add a few services and move on\u2014is fading fast.<\/p>\n And we\u2019ve got numbers<\/a> to back it up:<\/p>\n MSPs are facing an entirely new era, one where the options are: Stand still or get left behind.<\/p>\n The MSP model has always evolved to meet new challenges\u2014moving from break\/fix services to proactive IT management. Now, it\u2019s shifting again. The next era of MSPs is cloud-first, security-first and AI-enabled.<\/p>\n Buyers have already adapted. 83% of B2B customers<\/a> now prefer to purchase through a marketplace or digital sales platform, precisely to capitalize on the need for AI-driven services and access to leading-edge security solutions. And yet, 18% of MSPs<\/a> weren\u2019t profitable in Q4 2024, a 4% jump from the previous quarter. The way forward isn\u2019t just about offering services\u2014it\u2019s about rethinking how those services are sold, delivered and scaled.<\/p>\n Today\u2019s successful MSPs aren\u2019t just selling IT solutions; they\u2019re the trusted advisors to small businesses everywhere. Customers expect flexible, always-on solutions. They want more than just another reseller\u2014they want someone they can trust. And the MSPs leading this charge? They aren\u2019t the biggest firms with the most resources; they\u2019re the ones willing to innovate.<\/p>\n For instance, MSPs who incorporate AI into their operations will find themselves more in line with their clients and those they want to attract. In fact, 80% of SMB leaders<\/a> with AI believe most businesses their size use AI. Even some SMB leaders who don\u2019t use AI believe most businesses their size do use it (33%). Familiarizing yourself with AI\u2019s use and benefits can only have a positive impact as you advise SMBs who are looking to do the same.<\/p>\n It all speaks to how you need to stay on the forefront of innovation, no matter how large your MSP business is, by using marketplaces, AI and automation to compete. These advances in business can help you build solution bundles, offer predictive services and give customers instant access to what they need\u2014and help you stand out in a changing market.<\/p>\n The industry\u2019s old infrastructure wasn\u2019t built for this kind of speed.<\/p>\n Distributors were designed for a different era\u2014one during which transactions were slow, marketplaces didn\u2019t exist and buyers had no choice but to navigate layers of red tape.<\/p>\n That\u2019s not the world we live in today.<\/p>\n Distributors may call themselves \u201cmarketplaces,\u201d but the truth is, they haven\u2019t changed the fundamentals. They still introduce friction. They still add layers of cost. They still operate as middlemen in a world that increasingly demands direct, instant transactions.<\/p>\n We\u2019ve seen this story before. Blockbuster ignored streaming. Blackberry resisted touchscreens. Taxis underestimated Uber. Legacy distributors are making the same mistake\u2014holding onto a model that no longer works while the industry moves on without them.<\/p>\n MSPs stuck in the legacy model are making the same mistake.<\/p>\n The MSPs who thrive in the next five years will be the ones who recognize this now. The ones who don\u2019t? They\u2019ll struggle with the same challenges MSPs have been facing for years\u2014tight margins, increasing competition and a constant fight to grow profitably.<\/p>\n 91% of MSPs rank profitability<\/a> as their top challenge. That\u2019s not surprising. It\u2019s harder than ever to scale while protecting margins. Customers are more informed; competition is tougher; legacy sales models add friction at every turn.<\/p>\n Marketplaces aren\u2019t just about convenience. They remove inefficiencies, reduce overhead and open up new revenue streams that traditional distribution simply can\u2019t match. The data<\/a> proves it:<\/p>\n And this shift isn\u2019t slowing down. The global B2B e-commerce market<\/a> is expected to reach $47.54 trillion by 2030.<\/p>\n MSPs who embrace this model are scaling faster, increasing profitability and future-proofing their businesses. The ones who wait? They\u2019ll be stuck playing catch-up in an industry that isn\u2019t waiting for them.<\/p>\n We built our Marketplace for the way MSPs actually work. As the largest SMB cloud Marketplace by revenue and the largest MSP buying community in the world, we offer a unique advantage: We can help partners find opportunities, build lasting customer relationships and drive long-term growth.<\/p>\n Turning Data into Opportunity<\/strong><\/em><\/p>\n Staying ahead means understanding where the gaps are and acting on them before your competition does.<\/p>\n Partners using our AI-driven tools and insights are doing exactly that.<\/p>\n Having real insight backed by data helps MSPs understand market shifts and customer needs with greater accuracy. Instead of relying on instinct alone, you can make informed decisions, identify opportunities earlier and build strategies that lead to sustained growth.<\/p>\n Create Customers for Life with Storefronts<\/strong><\/em><\/p>\n Buying behavior is changing. Customers expect self-service, digital-first experiences\u2014and MSPs who provide that will build stronger, more loyal relationships.<\/p>\n That\u2019s where Storefronts<\/a> come in. They offer:<\/p>\n Imagine walking into a store where every aisle is stocked with exactly what you need, perfectly packaged, ready to go. That\u2019s what a Storefront delivers to your customers.<\/p>\n Self-service doesn\u2019t replace the MSP\u2014it enhances the buying journey, shortening the distance to purchase and making it easier for customers to see your value.<\/p>\n Some partners worry that self-service buyers aren\u2019t their ideal customers. But the reality is, B2B buying behavior is shifting. Customers expect choice, flexibility and instant access to services\u2014and the MSPs who provide that will build deeper trust and long-term loyalty. And that\u2019s been proven by a recent internal study, which revealed MSPs who utilized Storefronts had increased their self-service revenue by more than 35%.<\/p>\n Smarter Quoting = A Smarter Sales Process<\/strong><\/em><\/p>\n Quoting is where the sales process starts\u2014and it\u2019s the foundation of a successful customer relationship. But most quoting tools are nonspecific, expensive and built for generalists. That\u2019s why our quoting tool is purpose-built for MSPs, making IT sales faster and more seamless. It integrates seamlessly into our Solutions Builder so that MSPs can bundle services, price them effectively and create high-margin offerings in just a few clicks.<\/p>\n Imagine a quoting tool that\u2019s designed specifically for IT professionals, cutting down friction and making you look like an expert from the start. That\u2019s what you get with Pax8.<\/p>\n Solutions: Build Once. Sell Often<\/strong><\/em><\/p>\n Instead of offering a menu of disjointed services, Solutions lets you package best-in-class cloud products into ready-to-sell, bundled solutions\u2014and position yourself as a trusted business advisor, not just a reseller.<\/p>\n Here\u2019s how it works:<\/p>\n The best MSPs don\u2019t just sell products\u2014they solve problems. With Solutions, you can create high-value service packages tailored to your clients\u2019 needs, making it clear that you\u2019re not just an IT provider\u2014you\u2019re a specialist.<\/p>\n And specialists build trust. Customers don\u2019t just buy from you once\u2014they return, again and again, knowing you understand their challenges and have the right solutions, ready to go.<\/p>\n Expanding What\u2019s Possible in the Pax8 Marketplace<\/strong><\/em><\/p>\n The Pax8 Marketplace isn\u2019t just about buying software\u2014it\u2019s about taking control. It\u2019s about building the business you want, offering the right solutions and creating repeatable, scalable growth. And MSPs are using it in ways that go far beyond traditional distribution.<\/p>\n Some are adding vendor products we don\u2019t even carry, customizing their offerings to fit the exact needs of their clients. Others are using Solutions Builder to package fully managed service offerings\u2014bundling cloud products into seamless, high-value solutions that drive higher margins and deeper engagement. And with Opportunity Explorer, partners are getting ahead of the competition by predicting customer demand and proactively filling those gaps.<\/p>\n This is what the next generation of MSPs looks like\u2014more automation, more customization and smarter, data-driven growth. And with our AI investment, we\u2019re scaling global support to make sure every partner\u2014no matter their size\u2014has the tools to compete and thrive.<\/p>\n And the results? MSPs who have used Pax8 Marketplace tools have increased the overall value of their orders by nearly 65%.<\/p>\n Marketplaces are changing the way MSPs do business. But not all marketplaces are built the same. If you\u2019re making the move, make the right one. Choose a Marketplace that works for MSPs, not against them. One that gives you the power to build, bundle and differentiate.<\/p>\n The MSP industry is changing at an unprecedented pace. Customer expectations are shifting. Buying behavior is evolving.<\/p>\n The MSPs who thrive in this new era will be the ones who embrace the future now.<\/p>\n Self-service is here. Are you ready? Don\u2019t get left behind.<\/p>\n If you haven\u2019t signed up to become a partner yet, you can schedule a demo<\/a> to learn about our unique AI-driven Marketplace. If you are a partner, log in to explore our Marketplace. And join us at Beyond 2025<\/a> to see how Pax8 is redefining the future for our community.<\/p>\n\n
The New MSP Playbook<\/h3>\n
Why Distributors Are Holding You Back<\/h3>\n
\n
Marketplaces: The Right Model for Right Now<\/h3>\n
\n
Pax8: The Only Marketplace Built for MSP Success<\/h3>\n
\n
\n
\n
The Bottom Line: Marketplaces Aren\u2019t Optional. They\u2019re Inevitable.<\/h3>\n
\nAutomation is a must. Are you using it?
\nMarketplaces are the future. Are you in?<\/p>\nTake Control. Lead the Future.<\/h3>\n