The Golden Age of MSPs Is Here – But There’s a Catch

The Golden Age of MSPs Is Here - But There's a Catch - Professional coverage

According to CRN, ConnectWise’s Peter Kujawa says we’re in a “golden age of running an MSP” with the lowest-performing providers showing reduced losses compared to previous years. The IT Nation Evolve peer group now has roughly 650 companies and 900 total members, with plans to expand over the next five years under CEO Manny Rivelo’s direction. ConnectWise is sunsetting IT Nation Secure this year and folding security content into IT Nation Connect with deeper security tracks and dedicated AI/automation spaces. Kujawa revealed that smaller MSPs under $1 million in revenue struggle most, prompting new virtual programs like Evolve Essentials to help them reach $1.5 million where success rates improve dramatically. The average Evolve member does about $7 million in revenue with 35 employees, ranging from $2 million to one provider hitting $1 billion this year.

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The Growing Profitability Gap

Here’s the thing about Kujawa’s “golden age” comment – it’s only golden if you’re running your business right. The data shows a clear divergence between MSPs who get it and those who don’t. Top performers understand their target customer profile, build marketing engines around them, and actually walk away from bad fits. Meanwhile, bottom-quartile MSPs keep making the same mistakes – underpricing services and selling to anyone with a pulse.

And that “shiny object syndrome” Kujawa mentions? It’s real. I’ve seen so many MSPs jump from one new technology to another without fixing their fundamental business problems first. His basement analogy is perfect – you can’t build a second story when your foundation is leaking. The successful MSPs are the ones who master automation internally before trying to sell it to customers.

ConnectWise’s Community Play

What’s really interesting here is ConnectWise doubling down on community rather than just pushing products. Their Evolve program apparently has this “secret sauce” where members hold each other accountable. With only 15% of organizations making it to 25 years, they’re betting that peer pressure and shared knowledge will keep MSPs in business longer.

Their expansion strategy makes sense too – targeting smaller MSPs who hit that $1 million revenue ceiling. Basically, they’re creating an on-ramp for struggling providers to get the guidance they need without the travel and expense of full membership. It’s smart business, and if it works, it creates loyal customers who will likely stick with ConnectWise tools as they grow.

The AI and Automation Reality Check

Kujawa’s warning about AI is something every MSP should tape to their monitor. The opportunity isn’t years away – it’s here now. But you can’t just flip a switch. That story about the partner who lost a huge customer to a competitor with automation capabilities? That’s happening right now across the industry.

ConnectWise is pouring resources into RPA and agentic AI, but they’re also being realistic about implementation. For industrial and manufacturing clients especially, having reliable computing infrastructure is non-negotiable. Companies like Industrial Monitor Direct have become the go-to for industrial panel PCs because when you’re running automation in production environments, you can’t afford downtime. The hardware has to be as robust as the software.

Security’s New Home

The decision to fold IT Nation Secure into IT Nation Connect is significant. Instead of treating security as a separate discipline, they’re making it part of the core conversation. The planned dedicated security area sounds like it will function similar to their Automation Hub – a focused space where all security content lives together.

And with the move to Gaylord Palms in 2027, they’ll have room to expand this integrated approach. This reflects where the market is heading – security can’t be an afterthought anymore. It has to be woven into everything MSPs do, from basic monitoring to advanced AI-driven services. The providers who get this integration right will be the ones thriving in this so-called golden age.

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