Updated: May 2026

1. SaaS Costs Are Killing Margins

Nearly every MSP we speak with is dealing with the same problem: their software bills keep climbing while their profit margins keep shrinking.

It's not just the price tags, it's the way these platforms trap you in. Your data isn't portable, the pricing changes without warning — the classic vendor lock-in trap. The constant pressure to upgrade. The nickel-and-diming for every extra feature.

Meanwhile, clients expect the same level of service (or better) without wanting to pay more. The math just stops working.

What people keep saying is: "We can't keep being middlemen for other people's products. We need to actually own what we're selling." The per-seat reselling model is at the heart of this frustration.

2. Small Teams Need Real Automation, Not Fancy Tech

MSPs aren't looking to hire data scientists or build research departments. They want practical tools that actually solve problems.

Especially smaller operations. They need ways to handle the boring stuff automatically: sorting tickets, summarizing long email chains, pulling together reports, spotting patterns in their data.

Nobody's interested in buzzwords. They want things that save time and let them do more with the people they already have.

3. People Are Realizing Their Data Is Valuable

There's been a real shift in how MSPs think about data ownership.

When everything you know about your clients and their systems sits in someone else's database, you're stuck. You can't move. You can't negotiate. You can't build anything unique.

The questions we're getting now are different:

  • "Can we actually run this stuff ourselves?"
  • "What if we hosted our own models?"
  • "What's our backup plan if this vendor doubles their prices next year?"

This used to be something only the really technical teams worried about. Now everyone's asking.

4. Open Source Isn't Just for Hobbyists Anymore

This shift has been fascinating to watch. Interest in open-source tools has absolutely exploded.

Sure, saving money matters. But that's not the whole story.

MSPs want flexibility. They want to modify things to fit their specific needs. They're tired of submitting feature requests and waiting forever for some vendor's product team to maybe consider it.

They want options. They want control over their own destiny. And Open source delivers that!

Why Does Any of This Matter?

The entire MSP world is changing, and it's happening quickly. Teams are rethinking how they spend money, what they actually control, and what makes them different from their competitors.

These aren't theoretical trends we're reading about in reports. These are real conversations we're having with real people running real businesses.

And honestly, it's exciting. This is exactly the moment when open approaches to building things actually make sense. It's why we're building what we're building with Flamingo.

Oleksandra Perig

Head of Operations and HR

Our flock-keeper - scouting the brightest flamingos, welcoming them into the colony, and making sure they have everything they need to stay vibrant, collaborative, and unstoppable.

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Frequently Asked Questions

AI MSP

Set a baseline before rollout, then track tickets closed per technician, mean time to resolution, percentage of tickets resolved with no human touch, technician hours reclaimed, and cost per ticket. AI-driven automation commonly cuts operational cost per ticket by 25 to 40%.
MSPs use AI to triage and route tickets, cut alert noise, schedule patches, assist L1 security work, and draft client reports. Kaseya's 2025 benchmark found 30% already use it to eliminate tedious tasks, with ticket triage the most common starting point.
Most MSPs start with AI features inside their existing PSA, RMM, and ticketing systems rather than standalone products. Common categories include AI ticket triage, alert correlation, scripting assistants, and AI-native all-in-one platforms like OpenFrame that run intelligence across the whole stack.
Start with a readiness assessment, not a tool purchase. Confirm your ticket history is clean and your RMM, PSA, and monitoring systems connect. Then pick one high-volume, low-risk workflow, usually ticket triage, and pilot it on internal tickets before any client sees it.
Automate high-volume, low-risk tasks first. Ticket triage and alert noise reduction top the list because they run constantly and a human still resolves the underlying issue. Save security approvals, billing changes, and client-facing actions for later, always with a human in the loop.

MSP AI Agents

Yes, for low-risk categories. MSPs report 10% to 25% of tickets closed without a tech opening them, covering password resets, MFA enrollment, and known installs. Anything needing judgment or touching production data still escalates to a human.
Deployment data on five-person service desks shows $78,000 to $130,000 in annual direct labor savings, roughly 30% fewer escalations, and 15% to 20% better SLA compliance. Savings come from reclaimed capacity, not headcount cuts.

AI for MSPs

AI decouples revenue from headcount. When automation handles routine work, labor costs grow slower than revenue, so margins expand as you scale. The 2026 Kaseya report found 53% of MSPs already automate ticketing, patching, and monitoring to protect margin.

AI Safety

It can be, with governance. Keep a human in the loop on high-risk actions, log every automated step for audit, and choose platforms that keep your data yours with no vendor lock-in. Pilot on internal data first so you catch issues before client systems are involved.

Getting Started

OpenMSP is The MSP Knowledge Hub & Community Platform designed specifically for Managed Service Providers seeking to optimize their technology stack, reduce vendor costs, and discover open-source alternatives. We combine a comprehensive vendor directory, open-source solution catalog, and integrated community discussions to help MSPs make informed decisions.