Managed service providers (MSPs) are rethinking their traditional role in the technology stack, viewing artificial intelligence not as a new product to add to an existing catalog, but as the foundation of their client relationships. At a panel discussion at the XChange event in National Harbor, Md., industry leaders argued that the biggest opportunity for MSPs is helping customers redesign how they work using AI-driven solutions rather than simply selling the tools themselves.
From Tool Stack to Business Foundation
Melvin Williams, CEO of Blue Bell, Pa.-based M&N Communications, said the industry has a tendency to treat new technology as just another line item to install. He noted that most MSPs initially focus on how to integrate a new buzzword into their current operations and generate revenue from it. Williams advocates for a different approach, suggesting that AI should be the foundation of the beginning of the relationship with the customer. Rather than asking which tools to install, MSPs should be asking what business problems need to be solved and then determining if AI can help.
Corey Kirkendoll, CEO of Allen, Texas-based 5K Technical Services, described the current state of AI as a significant turning point. He said the technology has moved fast because it is ubiquitous on social media feeds, which creates both a significant opportunity and a security problem. Kirkendoll approaches AI as a cybersecurity conversation, emphasizing that exposing data to AI agents requires visibility into what customers are actually using. He noted that customers may have dozens of AI tools working inside their environments, creating an opportunity to turn AI governance into recurring revenue.
Michael Goldstein, market president of Fort Myers, Fla.-based Entech, agreed that the relationship between MSP and customer remains critical, especially as companies begin evaluating AI independently. He stated that the focus should not be on the tool stack, but on the trust factor with customers. Leonard Ozoemena, owner of Washington, D.C.-based Compass Solutions, said his company has already made a shift in mindset to remain relevant. By empowering customers to use off-the-shelf AI agents that replace customized solutions, his business model has had to adapt to the changing setting.
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The Future of MSP Operations
While many in the industry scramble to integrate the latest software into their offerings, the panelists suggested that the future belongs to MSPs that help organizations solve problems faster and make better decisions. Melvin Williams believes this approach is more valuable than managing the most devices or installing the most software. This shift requires a departure from traditional MSP products toward a more advisory role where the provider acts as an authority on business problems rather than just a technical vendor.
Compass Solutions has been working with AI for about three years and is currently seeing its business model evolve as off-the-shelf agents replace bespoke solutions. The company is working to redefine how their clients will operate in the future. Kirkendoll reinforced the idea that regardless of the vendor—whether Microsoft or Google—every product introduction creates a new cyber play that requires oversight. The challenge for MSPs is to establish governance over these numerous tools before customers do it themselves, which can be a significant opportunity for record revenue despite challenges.
They must adapt to the changing setting.
