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’re increasingly choosing cloud marketplaces for the choice benefits they get—namely, making their jobs a lot easier.
Why This Change Is Happening So Quickly
Change in the IT industry isn’t new. But the pace we’re seeing now? That’s different.
The IT channel is in the middle of its biggest transformation yet. MSP revenue is projected to grow 13% in 2025, reaching $595 billion globally—but growth alone won’t guarantee success. The landscape is shifting fast. Buyers expect more. Technology is evolving overnight. Competition is sharper than ever.
And MSPs are feeling this shift firsthand. Buyers are changing, and business models are adapting to the point where traditional ways of operating aren’t keeping up. The old playbook—where MSPs could resell licenses, add a few services and move on—is fading fast.
And we’ve got numbers to back it up:
- 54% of MSPs will buy through SaaS marketplaces in 2025.
- Cybersecurity managed services are growing by 15%—they’re no longer an add-on, but a requirement.
- AI-driven services will grow by more than 30%, forcing MSPs to rethink automation and efficiency.
MSPs are facing an entirely new era, one where the options are: Stand still or get left behind.
The New MSP Playbook
The MSP model has always evolved to meet new challenges—moving from break/fix services to proactive IT management. Now, it’s shifting again. The next era of MSPs is cloud-first, security-first and AI-enabled.
Buyers have already adapted. 83% of B2B customers 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 weren’t profitable in Q4 2024, a 4% jump from the previous quarter. The way forward isn’t just about offering services—it’s about rethinking how those services are sold, delivered and scaled.
Today’s successful MSPs aren’t just selling IT solutions; they’re the trusted advisors to small businesses everywhere. Customers expect flexible, always-on solutions. They want more than just another reseller—they want someone they can trust. And the MSPs leading this charge? They aren’t the biggest firms with the most resources; they’re the ones willing to innovate.
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 with AI believe most businesses their size use AI. Even some SMB leaders who don’t use AI believe most businesses their size do use it (33%). Familiarizing yourself with AI’s use and benefits can only have a positive impact as you advise SMBs who are looking to do the same.
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—and help you stand out in a changing market.
Why Distributors Are Holding You Back
The industry’s old infrastructure wasn’t built for this kind of speed.
Distributors were designed for a different era—one during which transactions were slow, marketplaces didn’t exist and buyers had no choice but to navigate layers of red tape.
That’s not the world we live in today.
Distributors may call themselves “marketplaces,” but the truth is, they haven’t 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.
We’ve seen this story before. Blockbuster ignored streaming. Blackberry resisted touchscreens. Taxis underestimated Uber. Legacy distributors are making the same mistake—holding onto a model that no longer works while the industry moves on without them.
MSPs stuck in the legacy model are making the same mistake.
- Customers expect choice and speed. Distributors weren’t built for that.
- Buyers want a seamless experience. Traditional reselling models don’t provide it.
- The industry is moving to self-service, automation and AI-driven solutions. Legacy infrastructure can’t keep up.
The MSPs who thrive in the next five years will be the ones who recognize this now. The ones who don’t? They’ll struggle with the same challenges MSPs have been facing for years—tight margins, increasing competition and a constant fight to grow profitably.
Marketplaces: The Right Model for Right Now
91% of MSPs rank profitability as their top challenge. That’s not surprising. It’s harder than ever to scale while protecting margins. Customers are more informed; competition is tougher; legacy sales models add friction at every turn.
Marketplaces aren’t just about convenience. They remove inefficiencies, reduce overhead and open up new revenue streams that traditional distribution simply can’t match. The data proves it:
- 64% of MSPs choose marketplaces for consolidated billing. Instead of juggling multiple vendor portals and disjointed invoices, they’re simplifying operations and keeping cash flow predictable.
- 56% use them as a one-stop shop for all solutions. Customers expect everything in one place, and MSPs need to deliver—without adding complexity.
- 50% rely on marketplaces to research, discover and compare products. The best decisions come from access to the right information at the right time.
And this shift isn’t slowing down. The global B2B e-commerce market is expected to reach $47.54 trillion by 2030.
MSPs who embrace this model are scaling faster, increasing profitability and future-proofing their businesses. The ones who wait? They’ll be stuck playing catch-up in an industry that isn’t waiting for them.
Pax8: The Only Marketplace Built for MSP Success
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.
Turning Data into Opportunity
Staying ahead means understanding where the gaps are and acting on them before your competition does.
Partners using our AI-driven tools and insights are doing exactly that.
- With Opportunity Explorer, MSPs can spot gaps in their industry, identify customer needs and expand their service offerings before competitors even see the opportunity. It’s built right into the Pax8 Marketplace, so our partners can use this feature to grow their businesses right away.
- Partners leveraging these insights aren’t just making smarter decisions—they’re making more money. In fact, 50% of partners using Opportunity Explorer have generated more revenue than they did without this tool.
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.
Create Customers for Life with Storefronts
Buying behavior is changing. Customers expect self-service, digital-first experiences—and MSPs who provide that will build stronger, more loyal relationships.
That’s where Storefronts come in. They offer:
- A seamless, modern buying experience in which customers can purchase IT solutions directly from their MSP.
- Fully branded digital experiences that give partners the ability to customize offerings by industry, customer segment or geography.
- A competitive edge for smaller MSPs—Storefronts are proving to be a game-changer for MSPs with 1-10 employees, helping them compete at scale.
Imagine walking into a store where every aisle is stocked with exactly what you need, perfectly packaged, ready to go. That’s what a Storefront delivers to your customers.
Self-service doesn’t replace the MSP—it enhances the buying journey, shortening the distance to purchase and making it easier for customers to see your value.
Some partners worry that self-service buyers aren’t their ideal customers. But the reality is, B2B buying behavior is shifting. Customers expect choice, flexibility and instant access to services—and the MSPs who provide that will build deeper trust and long-term loyalty. And that’s been proven by a recent internal study, which revealed MSPs who utilized Storefronts had increased their self-service revenue by more than 35%.
Smarter Quoting = A Smarter Sales Process
Quoting is where the sales process starts—and it’s the foundation of a successful customer relationship. But most quoting tools are nonspecific, expensive and built for generalists. That’s 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.
Imagine a quoting tool that’s designed specifically for IT professionals, cutting down friction and making you look like an expert from the start. That’s what you get with Pax8.
Solutions: Build Once. Sell Often
Instead of offering a menu of disjointed services, Solutions lets you package best-in-class cloud products into ready-to-sell, bundled solutions—and position yourself as a trusted business advisor, not just a reseller.
Here’s how it works:
- Build your perfect solution. Pick the exact products you want in your stack and leave out the ones you don’t.
- Package them up for your Storefront. Offer a curated, seamless buying experience for your customers.
- Quote and deliver seamlessly. Send quotes directly through our integrated platform, ensuring a frictionless process.
- Scale effortlessly. Build once, sell again and again, with repeatable, scalable solution bundles.
The best MSPs don’t just sell products—they solve problems. With Solutions, you can create high-value service packages tailored to your clients’ needs, making it clear that you’re not just an IT provider—you’re a specialist.
And specialists build trust. Customers don’t just buy from you once—they return, again and again, knowing you understand their challenges and have the right solutions, ready to go.
Expanding What’s Possible in the Pax8 Marketplace
The Pax8 Marketplace isn’t just about buying software—it’s about taking control. It’s 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.
Some are adding vendor products we don’t even carry, customizing their offerings to fit the exact needs of their clients. Others are using Solutions Builder to package fully managed service offerings—bundling 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.
This is what the next generation of MSPs looks like—more automation, more customization and smarter, data-driven growth. And with our AI investment, we’re scaling global support to make sure every partner—no matter their size—has the tools to compete and thrive.
And the results? MSPs who have used Pax8 Marketplace tools have increased the overall value of their orders by nearly 65%.
Marketplaces are changing the way MSPs do business. But not all marketplaces are built the same. If you’re 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.
The Bottom Line: Marketplaces Aren’t Optional. They’re Inevitable.
The MSP industry is changing at an unprecedented pace. Customer expectations are shifting. Buying behavior is evolving.
The MSPs who thrive in this new era will be the ones who embrace the future now.
Self-service is here. Are you ready?
Automation is a must. Are you using it?
Marketplaces are the future. Are you in?
Don’t get left behind.
Take Control. Lead the Future.
If you haven’t signed up to become a partner yet, you can schedule a demo 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 to see how Pax8 is redefining the future for our community.
