Is Private Equity a Threat or Opportunity for Small MSPs?

Merger and acquisition activity within the MSP sector has accelerated, with data cited indicating a 73% year-over-year increase in transactions for 2026 compared to 2025. Jay McBain’s reported statistics also highlight strong international momentum, particularly in EMEA, and a marked 800% rise in acquisitions specifically targeting managed security service providers (MSSPs). While the consolidated figures suggest heightened activity in large, visible deals, several participants noted that the true frequency of smaller, unreported transactions likely exceeds official tallies, underlining persistent underrepresentation in sector reporting. According to podcast contributors, small MSP deals often go untracked in industry data, despite anecdotal evidence that hundreds or thousands of such transactions occur annually. Larger deals, such as a $20 million transaction mentioned, receive public acknowledgment, but the majority of M&A activity is conducted without broad disclosure. The consolidation trend among larger entities—exemplified by Charter’s $34 billion merger with Cox and ScanSource’s $220 million acquisition of MicroAge—has resulted in fewer choices for business clients, though new regional providers are emerging as market gaps appear. Secondary discussions addressed operational and governance topics relevant to MSPs. The adoption and enforcement of AI acceptable use policies (AUPs) was emphasized as an accountability measure for clients whose employees are integrating AI tools into workflows. Additional topics included the stabilization of supply chain pricing by major vendors Dell and HPE, who have committed to 30-day price locks amidst recent volatility, and tactical sales advice regarding quote expiration to manage project timelines and risk exposure. For MSPs and IT leaders, these developments entail both opportunity and risk management considerations. M&A trends point to increased scrutiny and potential market concentration, emphasizing the need for transparency and due diligence in both dealmaking and vendor relationships. The recommended adoption of AI AUPs reflects heightened governance expectations, aiming to mitigate operational and reputational risks. Meanwhile, shifts in vendor pricing policies and resale practices invite closer review of contract terms to ensure financial stability and customer accountability. What if my clients resist change? Question of the Week: What is the best CRM for small MSPs? It depends on the size of the MSP and what you need the CRM to do. Popular options include Zoho, Pipedrive, HubSpot, and Campaign Monitor.Zoho: https://www.zoho.com/Pipedrive: https://www.pipedrive.com/HubSpot: https://www.hubspot.com/Campaign Monitor: https://www.campaignmonitor.com/ I, MSPs & Channel Trends: Is AI replacing the need for MSPs? Discuss M&A activity, AI acceptable-use policies, and supply-chain challenges.M&A Trends: https://www.linkedin.com/posts/jaymcbain_ma-activity-across-managed-services-is-accelerating-share-7490450073336799232-SHiL/ ScanSource to Acquire MicroAge: $220.5M acquisition expands cloud, cybersecurity, data center, and AI services.https://www.scansource.com/about/press-releases/2026/scansource-to-acquire-microage Charter Completes Cox Merger: The $34.5B deal creates a cable and broadband giant serving roughly 37 million customers.https://www.linkedin.com/news/story/charter-completes-cox-merger-creating-cable-giant-7531516/ Dell Matches HPE’s 30-Day Price Quote Validity: The change gives partners more pricing stability amid rising memory costs.https://www.crn.com/news/channel-news/2026/hpe-extends-price-quote-validity-to-30-days-partners-cheer-new-pricing-stability Tales from the Field: How do you handle a customer dispute over a $100 item when they threaten legal action? Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Halo PSA has launched a customizable artificial intelligence capability and announced a price reduction for its product, separating its approach from other PSA vendors. According to Amy Babinchak, Halo’s model allows users to build their own AI agents for a range of business processes, including quarterly reporting and project management, without charging additional fees. The company indicates that future price reductions may occur as user adoption milestones are met. This development is especially notable in an environment where other providers are raising prices while limiting flexibility. Halo’s differentiation is further underscored by its openness and a lack of legacy constraints. James Kernan states that Halo is experiencing rapid market share growth, currently behind established players such as Kaseya and ConnectWise. The transcript notes customer concerns regarding restrictive contracts and limited support from these larger incumbents. In contrast, Halo’s policy of integrated AI features without additional fees, as well as its responsive approach to MSP feedback, positions it as a vendor that some perceive as more adaptable to industry needs. Additional discussion addresses emerging risks related to MCP servers, which now facilitate the integration of client data across multiple platforms. Amy Babinchak raises liability concerns, noting that bringing client data into MSP-controlled systems may expand organizational exposure if security or compliance failures occur. The episode also reviews a backup vendor failure, in which an MSP was notified that Microsoft 365 backups were irretrievable due to a catastrophic vendor system failure. Both speakers underscore the severity of this scenario and recommend that MSPs seek written assurances from their backup vendors regarding data replication and recoverability practices. For MSPs and IT service providers, these developments highlight several operational considerations. The integration of customizable AI tools and falling PSA pricing offer new opportunities, but also present due diligence and alignment challenges. Expanded MCP server capabilities and recent backup vendor failures illustrate the necessity of strict data governance, contractual clarity, and continuous risk assessment. Technology leaders are advised to verify vendor practices surrounding security, data ownership, and incident response to mitigate both business and client risk.TITLE: How to Create People-Led Learning Culture? MSP Question of the Week: Create a safe space, encourage questions, use group training, and teach without doing the work for people. Halo introduces AI and lowers prices: Halo launches AI Studio for AI agents and plans to keep lowering prices. Could this spark an AI pricing war? https://www.crn.com/events/2026/halo-launches-ai-studio-mcp-push-to-help-msps-automate-service-delivery MCP: Friend or Foe? MCP gives AI access to MSP systems, but creates new security, data, and liability concerns. AI Shared Responsibility is now an MSP problem: MSPs need AI governance, approved tools, access controls, data policies, training, and incident reviews.https://petri.com/ai-shared-responsibility-is-now-an-msp-problem/ Tales from the Field: A backup failure raises a critical question: who is responsible when protected Microsoft 365 data cannot be recovered?https://www.reddit.com/r/msp/comments/1vm9dcs/heads_up_cove_backup_isnt_backed_up/ Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The episode’s primary focus centers on the introduction of China-based Alibaba's new artificial intelligence (AI) model, which is positioned to rival existing US-developed models. This development has triggered concerns within the US federal government regarding the potential superiority of these foreign AI models and resulting security and data governance risks. The discussion further noted that recent import bans in the US have included consumer and business products containing AI elements, such as robotic vacuum cleaners, reflecting heightened regulatory scrutiny and caution toward foreign AI integration in both enterprise and consumer environments. Supporting details outlined that Chinese technology companies have released an increasing number of AI models, including both large-scale and smaller, task-specific models. According to the discussion, the trend toward “distilled” or smaller models, which are trained based on larger systems, introduces efficiency benefits but also creates concern about loss of fidelity or intelligence in iterative retraining. Reference was made to a lengthy public statement by Meta’s CEO on the risks and advantages of model distillation and to US regulatory actions responding to these broad technology shifts. A key secondary topic was the launch of the Managed Intelligence Alliance (MIA), formed at ChannelCon 2026 to address AI standards, accreditation, and governance for MSPs. However, analysis pointed out that the Alliance’s executive leadership is comprised primarily of large aggregators and vendors, with a notable absence of direct representation from operational MSPs. The structure involves engagement with Texas A&M University for association-building, but concerns were raised regarding industry self-regulation, stakeholder representation, and the practical function of such alliances for the broader MSP segment.TITLE: Probing Client AI Opportunities and Managing Leadership Meetings for MSPsQuestion of the Week: What are some good pre-sales probing questions to get the conversation going with a prospect around AI opportunities? AI: Chinese AI models, smaller/distilled models, and AI trainingMeetings: How to run better weekly leadership meetingsChannelCon: Managed Intelligence Alliance and MSP industry standardsTales from the Field: The value of a small MSP business The discussion concluded with practical implications for MSPs and IT service providers, emphasizing risk management, the importance of understanding both external technological developments and internal AI adoption, and the need for clear standards and governance amid evolving vendor and regulatory landscapes. The conversation highlighted the necessity for MSPs to critically assess tool adoption, process discipline in meetings, and asset valuation, while maintaining vigilance over the security, accountability, and ownership structures within emerging technology initiatives and industry alliances. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Private equity (PE) acquisition trends in the Managed Service Provider (MSP) sector are targeting smaller firms at increasing rates, with offers now being extended to MSPs in the $1–3 million revenue range. PE activity, once limited to companies exceeding $5 million in annual revenue, is now resulting in more than half of current offers for these smaller businesses coming from large financial entities. This development creates both opportunities and risks for small and boutique MSPs, especially those with specialization or unique market positioning. Market data and discussion on the podcast highlighted a “void” in the $3–5 million MSP segment, attributed to sustained PE buyouts and the slower organic growth required to fill this gap. Growth beyond the $2 million threshold remains a structural challenge for many MSPs, requiring investment in management layers and business process sophistication. PE acquirers are described as increasingly eager, but both success rates and culture-fit issues remain a concern, with statistics reportedly indicating that many PE integrations do not succeed in the long run. Diligent vetting of acquirers and focus on internal operational maturity were emphasized as risk mitigations. Other topics examined included the implications of third-party cloud outages, such as the Microsoft incident of July 24, 2026, and their effects on MSP–client communication protocols. It was noted that responsibility for outages often lies outside the MSP’s control, making timely, empathetic, and proactive client communication essential. Additional segments addressed risks associated with misaligned business ethics—such as using misleading job advertising—and the operational significance of transparency and genuine client interaction. Opportunities for skill development were identified through emerging partner programs in AI, specifically pointing to free certification offerings from Google and Anthropic, with the observation that 65.7% of MSPs have no public-facing AI narrative. For MSP leaders, these findings point to a need for robust organizational processes: strategic specialization, internal reinvestment, and strong core value alignment to withstand shifting acquisition patterns and integration risks. Vendor and platform accountability, particularly regarding service continuity, should remain central in client management practices. Skill development in AI and transparent business operations are positioned as differentiators in a market where rapid change and client trust are both key risk and opportunity factors. On July 24th Microsoft had an outage that covered a lot of North America for about 5 hours. https://www.instagram.com/p/DbKyeZVmauy/ What if you don’t want to sell your company? PE is snapping up the larger end of the MSP market. Is that an opportunity or a threat for smaller MSPs? https://ctacquisitions.com/guides/private-equity-msp-2026/ The MSP of the future. Amy has been writing for 3 years on this topic and now has a summary article. https://www.thirdtier.net/2026/07/23/the-msp-of-the-future-pulling-the-threads-together/ Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

A key focus of the episode is on practical approaches to conducting pre-sales assessments for prospective managed service clients, particularly those with existing MSP relationships and under 100 employees. Hosts discussed that frontline assessment methods often prioritize observational “walk-arounds” and targeted questioning rather than the deployment of specialized tools, except in cases where complexity or asset uncertainty warrants additional rigor. The conversation emphasized that visible signs of technological investment (or lack thereof) and management engagement provide valuable risk indicators to help MSPs assess prospect suitability and potential client alignment. Supporting details included recommendations against using automated network scanning tools as a default during the sales process, especially for smaller prospects. Instead, initial technology and business process understanding should be driven by reviewing company websites, social media, and conducting direct observation and informal dialogue with staff. For more complex environments or where asset counts are ambiguous, tools such as Galactic Advisors, RapidFire Tools, or Lansweeper were suggested, but only after careful consideration of the actual information gap. MSPs were advised to leverage preexisting documentation and probe for differences with prior MSPs, focusing on gaps in service, dissatisfaction, or unaddressed needs. Secondary topics included the necessity of formal Master Service Agreements (MSAs) and the operational risks of long-running unwritten arrangements. The hosts reported that customer pushback on contracts is rare; those unwilling to sign can be managed through premium pricing or operational discretion. The use of digital document management and auto-renew online agreements was cited as a means to streamline governance and ensure that contractual terms keep pace with operational changes. The conversation also addressed best practices for Quarterly or Technology Business Reviews (QBRs/TBRs)—advocating for business-oriented, forward-looking discussions rather than technical or ticket-driven reporting, and highlighting risk in overinvesting staff time in meeting preparation. The episode concluded with a practical case study on recurring revenue management, highlighting a systematic approach to price increases after extended periods without adjustment. The case demonstrated that fears of customer attrition due to price adjustments are often overstated, particularly when supported by transparent communication and a graduated rollout to well-aligned clients. The discussion reiterated the importance for MSPs to maintain accountability, regularly review contractual agreements, manage operational costs, and structure client engagements to reduce risk exposure while improving alignment with organizational goals. Title:   How do you complete an assessment for a prospect? Topics/Events Question Of The Week: How do you complete an assessment for a prospect?  What to do if you don’t have agreements in place, but you’ve worked with recurring clients for years.  QBRs – what questions should you be asking during your regular QBRs with your clients CMMC third-party audits are paused. The channel opportunity isn’t. ChannelE2E https://share.google/4vXDd5G3ysgflU6PU STORY:  Reviewing a MSP’s current agreements, James realized the MSP hadn’t had a price increase for over 5 years.  Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

A significant development discussed in the SMB Community Podcast episode highlights the evolving Microsoft Partner Program. Microsoft has updated its partner program at the start of its fiscal year, introducing new opportunities and incentives. Notable changes include the loosening of Agent365 licensing, allowing its addition to Business Premium licenses and other tiers, and offering a 25% discount on Windows 365 licenses for both new and existing customers. Additionally, Copilot for Business is now available with a 15% discount for the upcoming year through the partner program. These updates present potential financial benefits and strategic advantages for MSPs engaging with Microsoft's offerings. The episode also touches upon the increased adoption of onboarding fees among MSPs. While some MSPs prefer to integrate initial setup costs into project-based work, a growing percentage now charge explicit onboarding fees. One discussed model involves charging a fee equivalent to one month's recurring service cost, with some offering waivers for multi-year agreements. Another creative approach noted is using the onboarding fee to fund sales commissions, providing sales representatives with negotiation leverage. This trend suggests a shift in how MSPs are structuring their client acquisition and initial service delivery processes. Further discussions in the podcast address the broader labor shortage in the technology sector, which is reportedly more significant than concerns surrounding AI's impact on jobs. The shortage particularly affects highly educated IT professionals, including those with degrees and senior engineering expertise, with an estimated 50,000 jobs at risk. This situation presents opportunities for existing industry professionals to advance and for AI or new entrants to fill entry-level roles. Concurrently, there is a recognized need for enhanced business acumen and financial literacy among IT professionals to better understand client business needs and articulate the return on investment for technology solutions. For MSPs and IT service providers, the updated Microsoft Partner Program offers tangible financial incentives and opportunities for service expansion, particularly with the introduction of the Copilot specialization. The increasing prevalence of onboarding fees warrants a review of client acquisition strategies, balancing revenue generation with potential client apprehension. The persistent labor shortage underscores the importance of continuous training and upskilling, with a particular emphasis on developing business and financial literacy alongside technical expertise. Finally, the discussion on mergers highlights the critical importance of cultural alignment and clear, written agreements regarding governance and exit strategies, as poorly managed mergers can significantly diminish business value. Is it worth it to become a certified Microsoft Partner?    Labor shortage link: https://www.linkedin.com/news/story/record-labor-shortage-may-pose-larger-threat-than-ai-8379017/   Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The episode addressed the heightened challenges MSPs and IT service providers face in client acquisition, with specific reference to a recent Kaseya report indicating that twice as many MSPs describe obtaining new clients as more difficult compared to the previous year. This shift is attributed, in part, to changes in marketing efficacy and the increased reliance on referrals rather than structured marketing strategies. These findings emphasize the need for a consistent, proactive marketing approach—moving beyond informal networks—to counteract periods of slow business and ensure stable revenue. Discussion highlighted that many MSPs lack a formalized marketing plan and treat the absence of active marketing as a matter of pride, despite clear evidence that consistent marketing activities are essential for growth and resilience. According to James Kernan, "marketing is the oxygen of your business," and its absence correlates directly with reduced new business opportunities. Strategies such as recurring in-person or online engagement with clients, regular assessment of marketing practices, and leveraging written marketing plans were identified as actionable recommendations for sustaining pipeline health. A secondary focus examined operational risk and opportunity related to "shadow AI"—unauthorized or unmanaged use of AI tools by clients’ staff. Amy Babinchak detailed three core risks: accidental exposure of confidential data, violation of contracts or regulatory requirements, and a lack of auditable records for actions taken by shadow AI tools. The discussion identified practical risk mitigation steps, including staff education, policy development, and implementation of monitoring tools, all of which represent billable opportunities for MSPs while reducing downstream liability in the event of a breach. For technology service providers and decision-makers, the episode underscores the operational imperative of formal, consistent marketing—even during slow periods—as well as the need for vigilant governance over emerging technology risk vectors such as shadow AI. By proactively engaging clients through both marketing and risk education, MSPs can better protect their businesses while expanding stable, recurring revenue streams rooted in demonstrable expertise and accountable service delivery.Title:   How do I get more business when it’s slow? M&A Topic: Why is an elevator pitch for my business important? Article: Why is finding new clients harder? Double the number of MSPs in Kasaya reported said so. https://www.kaseya.com/blog/msp-growth-challenges-2026/ QBR Talk: Talk to your clients about Shadow AI https://www.thirdtier.net/2026/06/25/speak-to-your-client-about-shadow-ai/ Tales from the field: A fictional tale about the Trunk Slammer from Hell.  https://www.reddit.com/r/msp/comments/1u82vnh/i_got_obsoleted_by_ai_so_i_wrote_you_all_a_bofh/ UPCOMING CHANNEL EVENTS Mastermind LIVE in Omaha NEJuly 30-31st Register:  https://kernanconsulting-mastermind.mykajabi.com/mastermind-event Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The episode prioritizes the operational and exit-planning risks associated with MSPs lacking formal contracts. According to Amy , approximately half of MSP business owners operate without managed service agreements (MSAs), a decision that frequently results in reduced business valuation during sale negotiations. Both James and Amy emphasized that the absence of documented agreements is commonly flagged by buyers as a significant risk, often resulting in a devaluation of the acquired customer relationships. This exposes small and mid-sized providers to continuity risks, particularly where customer retention and service transferability are not contractually secured. Further details outlined by Amy indicate that reluctance to implement contracts stems from concerns about client reactions, particularly in longstanding relationships. She observed that auto-renewal clauses and periodic, non-intrusive contract updates can streamline compliance and reduce friction. A personal account highlighted that, out of numerous customers, only one refused to sign an agreement, and this isolated case did not lead to client loss but necessitated risk pricing adjustments. James Kernan advised that contract clarity—covering terms, automated payments, and built-in annual price adjustments—should be positioned as a value to both parties, reinforcing operational stability and predictability. Adjacent topics addressed contemporary service risks such as the proliferation of shadow AI applications and exposure to business email compromise. Amy reported discovering over 150 unmonitored AI-powered apps at client sites, emphasizing these as vectors for data exfiltration and compliance gaps. The Guards Cybersecurity Statistics report was cited, identifying business email compromise and social engineering as persistent attack methods, while underscoring that modern threat actors often bypass traditional privilege escalation in favor of capturing identity credentials and tokens. The operational focus for MSPs was advised to shift toward email, AI governance, and identity protection rather than legacy device vulnerabilities. For MSPs and IT service providers, the main takeaways involve reassessment of contractual practices and a heightened approach to governance and risk management. Documented client agreements are necessary not only for valuation at exit but also for protection against operational disruptions and liability. Simultaneously, providers are urged to implement discovery and control mechanisms for AI use and to refresh security postures in line with current attack methods. The importance of establishing relationships with specialized advisors, attorneys, and alternative financing partners was also articulated, illustrating the multi-layered risk landscape that management teams must navigate for business resilience.Show title: “How to Start a MSP” 1. How to Start a MSP- Resources: www.itspu.com 2.    New article from Third Tier: Taming Shadow IT before it tames you https://www.thirdtier.net/2026/06/21/taming-shadow-ai-before-it-tames-you/ 3.    Guardz released a new cyber security statistics report: https://guardz.com/blog/security-awareness-statistics-msps-cant-ignore/ 4.    Thoughts about whether an MSA is needed? Send them through the website: www.smbcommunitypodcast.com 5.    Anthropic Partner Program - https://www.anthropic.com/news/services-track-partner-hub   Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The conversation focused on the practice of providing managed service pricing to customers during an initial meeting. One concept discussed was that MSPs are encountering prospects who increasingly expect immediate, transparent pricing, with many decision-makers opting to make choices after a single round of vendor meetings. The discussion explored how this shift contrasts with traditional industry advice that recommends withholding pricing until after an in-depth assessment and value-building process. Several points were raised, including the observation that coming prepared—with thorough research on the prospect and a clear pricing structure—can facilitate business wins, especially in competitive settings where prospects expect streamlined proposals. A key theme that emerged was the importance of preparation ahead of initial client meetings. The discussion clarified that researching client backgrounds, conducting preliminary discoveries, and leveraging prior experience with similarly sized environments enable MSPs to present informed, realistic pricing. The conversation addressed that exceptions remain: in complex environments or when the client lacks clear infrastructure visibility, an assessment may still be necessary prior to quoting. However, these situations are reportedly less common, as clients often provide substantial upfront context during pre-meeting calls. Secondary topics included practical guidance for financing large product orders, navigating out-of-state project requirements, and managing margin compression. The discussion explored options for financing substantial hardware purchases, highlighting leasing through distributors or manufacturers, encouraging clients to handle their own financing where possible, and considering purchase order (PO) financing to reduce resource strain. For out-of-state projects, building a professional network through peer groups or leveraging distributor partner networks was recommended. Regarding margin management, participants suggested standardizing service stacks, packaging recurring solutions, and reviewing contracts to ensure annual rate adjustments. The use of value-added services, such as cybersecurity and compliance, was recommended to offset margin thinning. The discussion outlined several implications for MSPs and IT leaders. Responsive, transparent pricing aligns with current buyer expectations but requires robust preparation and established pricing models to maintain accountability and ensure fair risk allocation. For hardware procurement, shifting financial responsibility to clients or utilizing external financing tools can preserve operating capital and mitigate margin erosion. Resilient operational models—incorporating peer collaboration, flexible service packaging, and annual price reviews—enable firms to adapt to ongoing industry pressures including rising costs and tightening margins. MSPs are advised to prioritize accountability in client communications, vendor negotiations, and conflict resolution policies to reduce operational risk and protect organizational wellbeing.Title:       Should you give a proposal at the first meeting? MSP Question of the week:   Should you give Managed Services pricing to your prospect on the first meeting? Topics/Events Apple Price hike is not welcome news:  https://www.linkedin.com/news/story/apple-hikes-prices-we-know-this-is-not-welcome-news-8956946/https://www.linkedin.com/news/story/apples-price-hikes-reflect-ai-eras-growing-price-tag-8305905/     20% price increase ipads, macbooks, iMacs – iPhone unchanged How do you finance larger product orders?   Lease, PO financing w/ distributor – don’t tell mfr What if you have a project in another state for a current client ?  How do you deliver? With margins thinning, how can I increase my overall margin? Tales from the field:  How do you deal with an irate customer? Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The episode’s principal focus is on managing employee compensation requests within MSP operations, specifically addressing scenarios in which employees request significant raises. The discussion highlights the need for MSP leaders to weigh current market rates and organizational financial constraints in response to such requests. Both collaborative problem-solving—engaging employees in discussions regarding revenue generation—and performance-based compensation structures were identified as practical strategies for balancing employee retention with business viability. Supporting this, the speakers emphasized transparent conversations with employees about the company’s billing structure, the sources of revenue, and the tradeoffs required to increase compensation. Performance-based incentives, such as commissions or bonuses tied to measurable business milestones (e.g., revenue targets, net new business), were noted as effective mechanisms for aligning individual rewards with organizational profitability. The discussion also noted risks when negotiation dynamics become adversarial, underscoring the importance of maintaining professionalism in both management and staff behaviors. Adjacent topics included the increasing relevance of AI proficiency for workforce retention and the emerging terminology in the sector, such as “Managed Intelligence Provider” (MIP). It was observed that employees lacking AI skills face elevated layoff risks, a factor attributed to shifting operational priorities and the need for continuous learning. While new acronyms like MIP may gain industry attention, participants agreed that most services related to intelligence and data management could be incorporated within the MSP framework, suggesting minimal structural change for service providers. For MSPs and IT leaders, the session underscores the necessity of clear compensation policies, ongoing staff development—especially in AI—and cautious positioning during merger or acquisition discussions. Risk mitigation includes frank financial communication with staff, investments in workforce upskilling, and careful negotiation to avoid undervaluation during business transitions. Performance incentives and clear cultural alignment are practical steps to balance employee satisfaction with organizational sustainability.1. MSP Question of the week: My employee wants more money- what should I do? 2. A single decision that triples some workers layoff risk – Tech workers who regularly use artificial intelligence tools are far less likely to be laid off compared to colleagues who use AI less frequently, Bloomberg reports, citing new Gallup research. It puts infrequent users' layoff risk at 18%, tripling the 6% layoff risk for frequent users. Earlier this year, researchers tracked how often 23,000 employed and displaced workers used AI 3. The RISE of the Managed Intelligence Provider 4. M&A: How do I find the right buyer? Amy’s Book: https://amzn.to/4dSYOcR 5. Tales from the Field: Merger conversation – make sure it’s a culture fit and be fair with the price (no lowballing)   Mastermind Event – July 30-31st, 2026 Register here: https://portal.kernanconsulting.com/mastermind-event Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.