# The MSP business is changing faster than most MSPs are **Author:** Gaidar Magdanurov | **Published:** 2026-06-12 **Tags:** Business **Summary:** Omdia data shows the money has moved to AI and security services delivered across the full client lifecycle. --- Recent reports from Omdia and Jay McBain's presentations, highlight two issues: future growth for MSPs is not going to be easy, and there is a huge opportunity many MSPs are not leveraging yet. ## The market is tough Managed services revenue will grow 10% in 2026, reaching $650 billion globally. That sounds healthy. Yes, based on Omdia reports, there are over 330,000 companies fighting for managed service contracts. The market is crowded, churn in customer bases is high, and channel growth expectations for the year dropped in Omdia's latest polling. RMM and PSA software growth is slowing too, which is a reliable leading indicator: when MSPs stop adding seats to their tooling, they have stopped adding clients. > The problem is not demand. The problem is differentiation. Undifferentiated MSPs shrink. ## Shift from products to services For every $1 of infrastructure sold, the partner opportunity around it is $7.13. It breaks down as advice (16%), design (18%), build (27%), procure (5%), adopt (16%), and manage (18%). The resale transaction many MSPs relied on historically is 5% of the value. The other 95% sits in services before and after the sale. Software and services already account for 84% of partner revenue. Hardware resale margin is not coming back. This is very clear for MSPs relying on infrastructure resell. If they sell a client $50,000 of infrastructure and stop there, they captured the worst slice of a $350,000 opportunity. The MSP that wraps assessment, design, deployment, adoption, and ongoing management around that same deal earns seven times more – at better margins, on recurring contracts. ## AI is the biggest open opportunity, and clients cannot do it alone The AI services market for partners grows from $59 billion in 2025 to $267 billion by 2030 – a 35% annual growth rate. Three data points explain why this lands on MSP desks: - 47% of customers say they will rely on specialized partners for agentic AI – the largest single answer, ahead of building in-house or buying off the shelf. - 70% of customers report that fewer than 20% of AI proofs of concept reach production. The main blocker is integration and architectural complexity – exactly the work MSPs do. - 59% of customers now have dedicated AI budgets, and 40% of those budgets exceed $500k. There is a catch. 82% of partners say they need more vendor support to sell AI, and lack of vendor enablement is the top adoption barrier at 32%. The practical move: pick one or two vendors who invest in AI training, certifications, and co-selling, and go deep. Do not spread across ten vendor programs that each give you a webinar and a logo. The service lines that pay: AI readiness assessments, data preparation and governance, integration into existing workflows, and ongoing management of AI security and compliance. None of this requires building models. All of it requires knowing the client's environment – which is the asset MSPs already own. ## Cybersecurity remains the strongest engine Global cybersecurity spending hits $311 billion in 2026, up 12.1%. Two-thirds of that is services, not technology. And 91.7% of all cybersecurity spend is sold through or with partners. Within services, the growth is in exactly the categories MSPs can deliver: MDR up 15.2%, deployment and integration up 16.4%, remediation up 66.4%. Managed security services overall grow 14.4% to $106 billion. In Omdia's channel survey, 73% of partners are investing in managed security services, 70% plan to co-deliver with other partners, and 63% will use AI agents for specific security tasks. Notably, 65% also plan to reduce internal headcount – the direction is leaner delivery, with AI and automation carrying more of the operational load. Margin in security services will increasingly come from delivery efficiency, not just price. ## The buyer changed, sales motions probably did not Three findings about how clients buy now: - 75% of B2B buyers do not want to talk to a salesperson. They research digitally, compare on marketplaces, and arrive with an opinion. - Buying decisions form across roughly 28 touchpoints: peer groups, review sites, communities, podcasts, AI assistants like ChatGPT, and events. Cold outreach reaches buyers after they have already decided. The implication for a 20-person MSP is not "hire a marketing team." It is: be visible where your buyers already gather. Local peer groups, one or two review platforms with real client reviews, a steady presence in the communities your vertical trusts. Visibility compounds; campaigns do not. ## What to do next The model that resells products and bills for tickets is being replaced by one that sells outcomes across the full client lifecycle. The market will keep growing 10% a year. Whether your business does depends on four moves: - Map your revenue against the services multiplier. If most of it sits in procure and basic manage, you are exposed. - Build one packaged AI service this year – readiness assessment is the natural entry point – with a vendor who funds your enablement. - Push security mix toward MDR and managed services, and use automation to protect margin as you grow. - Shift sales effort from outbound to visibility: reviews, peer groups, community presence. Do not try all four at once. Pick the one that fixes your weakest number – growth, margin, or retention – and start this quarter.