A few weeks ago, Harbor View attended GTIA’s ChannelCon 2025 in Nashville. ChannelCon is largely focused on solutions providers, vendors, distributors, and professionals in the Managed Service Provider (MSP) ecosystem. Here are some of the key takeaways from notable presentations and panel discussions.
A Big Bear Hug for Existing Customers
The last few years, finding consistent growth anywhere has seemed like a real challenge for many MSPs. However, there is significant opportunity for MSPs with existing customers. To the extent MSPs are not already doing so, customer messaging can be adjusted from “we can fix that” or “we can provide that service” to broader strategic advisory, and ongoing conversations can be initiated around higher-order functions like risk management, cybersecurity, governance, and compliance. A more robust scope can help facilitate relationship expansion – additionally, the more embedded an MSP becomes as an outsourced partner, the less likely it is that a particular customer will churn.
Shadow IT + The Essential AI Catch-Up
MSP clients are already using AI whether the MSP is aware or not. And the clients themselves may not be aware that their own employees are using AI (“Shadow IT”). Traditional IT was rolled out first with government entities, then corporations, and then eventually came to the everyday user – AI has flipped the script and really started with the everyday user (ChatGPT, etc.). MSPs have an opportunity to help their clients understand where AI is already in use in their organizations and develop a comprehensive AI strategy. However, there are two important considerations: 1) AI is so impactful that it needs to be framed as a “business problem” not just a “technical IT problem” – 2) MSPs can’t effectively coach clients on AI unless they’ve implemented and operationalized AI technologies internally first.
SMB Opportunities + Overall MSP TAM
GTIA released their study “SMB Technology and Buying Trends 2025” at ChannelCon – key findings from SMBs surveyed:
80% of SMBs acknowledged that they had some or a lot of room for improvement with respect to technology vision and strategy, presenting a huge opportunity for MSPs to step in and provide comprehensive guidance. AI and cybersecurity are especially nuanced, stress-inducing areas where MSPs can demonstrate thought leadership, educate SMB clients, and assist with customized implementations, even if it means starting with more basic tools to accommodate constrained budgets and incrementally upgrading over time. The overall SMB addressable market for MSPs continues to grow, with one contributing factor being “accidental entrepreneurs” who have been let go by larger technology companies in the past few years.
Re-Thinking Control, M&A, and Wealth Creation
Echoing themes HVA often discusses with our client-partners, many smaller MSPs want to retain control over their businesses – but this isn’t always the best decision as far as long-term wealth creation and opening up opportunities for your team. MSPs need money to grow – where does that money come from? A lot of smaller MSPs want to acquire other relatively-smaller MSPs – where does the capital to acquire come from, and who has the proper integration know-how? Attaching to a larger platform that you’re strategically aligned with can be incredibly powerful and help you reach heights that are very difficult to achieve on a standalone basis. Additionally, acquiring other small businesses as a pathway to growth is often not transformative – in many cases, you’re merely just combining two stagnant businesses that have a limited pro forma trajectory. Taking into account potential customer attrition, it’s not worth it. The right partner – be it a larger platform or private equity firm – can offer game-changing resources that will accelerate your growth and evolve your business in the right ways.
These key takeaways reflects comments made by conference speakers, including but not limited to: Austin McChord (Co-Founder and Chairman – Slide), Jason Magee (CEO – Cynet), Nick Heddy (President and CCO – Pax8), Chris Day (CEO – ScalePad), Tim Conkle (Founder and CEO – The 20), Peter Melby (CEO – New Charter Technology), Jeffrey Newton (Co-Founder – Cyft.ai), John Harden (Director, Strategy & Technology Evangelism – Auvik)
DISCLAIMER This presentation is intended for information and discussion purposes only and does not constitute legal or professional investment advice. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of Harbor View Advisors, LLC (“HVA”). The information in this presentation was compiled from sources believed to be reliable for informational purposes only. HVA does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented.
