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Today’s headline news for Canadian IT solution providers: Top Down Ventures closes C$38M Founders Fund I: Top Down Ventures has announced the final close of its Founders Fund I at $38 million Canadian, oversubscribed against its original target. According to the firm, this is the first institutional fund focused exclusively on early-stage software and AI for the MSP ecosystem, backed by more than 100 MSP operators including Pax8. The fund’s first exit – zofiQ to ConnectWise – returned 5.3x the invested capital in roughly six months. Canada now second globally for ransomware, Fortinet reports: New data from Fortinet‘s 2026 Global Threat Landscape Report and its companion 2026 Cybersecurity Skills Gap Report show Canada has moved from third to second globally for ransomware attacks, with 374 organizations extorted and 17 billion total cyberattacks recorded in 2025. According to Fortinet, AI-accelerated threats are compressing time-to-exploit by two to four times, while 47 percent of Canadian IT leaders cite a cybersecurity skills shortage as a top cause of breaches. Barracuda: one in three emails now malicious or spam: Barracuda‘s 2026 Email Threats Report, based on analysis of 3.1 billion emails, finds that 48 percent of malicious email activity is phishing, 34 percent of organizations experience account takeover at least monthly, and 70 percent of malicious PDFs now hide phishing links inside QR codes. According to Barracuda, attackers are shifting toward stealthier, trust-based tactics designed to bypass traditional filters, creating growing demand for layered email protection and automated response. Calian completes Computex acquisition: Ottawa-based Calian Group has officially completed its acquisition of U.S. managed service provider Computex. The deal expands Calian’s American IT services footprint and adds to its cybersecurity capabilities. Crogl begins private rollout of AI SOC platform: Crogl has initiated a private rollout of its new AI-powered SOC platform, positioning it to help service providers automate threat response and reduce alert fatigue for lean security teams. Pax8 and NinjaOne announce MSP partnership: Pax8 and NinjaOne have announced a partnership starting as a referral motion, giving MSPs a path to RMM and unified IT operations tools while the companies work toward future marketplace integration. TD SYNNEX secures reserved NVIDIA GPU access for MSPs: TD SYNNEX has arranged reserved NVIDIA GPU capacity for channel partners through a deal with Nebius AI Cloud, giving MSPs a route to AI infrastructure services without buying hardware or competing with hyperscalers for supply. Read Full Transcript Welcome to The Buzz from ChannelBuzz.ca, I’m Robert Dutt, today is Tuesday, May 12, 2026, and here’s what’s happening in the channel today. Top Down Ventures has announced the final close of its Founders Fund I, pulling in 38 million Canadian dollars and oversubscribing its original target. According to the firm, this is the first institutional fund focused exclusively on early-stage software and artificial intelligence for the managed service provider ecosystem, which it values as a roughly 1 trillion dollar global IT services category. The fund is backed by a limited partner base of more than 100 MSP operators, including distribution giant Pax8. Top Down noted that closing the fund in the current economic environment was a challenge, but the oversubscription signals clear institutional interest in the MSP software space. The firm also pointed to its first exit as a proof point – zofiQ, an agentic AI platform for MSP service desks, was acquired by ConnectWise just six months after Top Down’s initial investment, returning 5.3 times the invested capital. Having dedicated institutional capital purpose-built for the ecosystem means the next generation of MSP tooling gets funded by people who actually understand the problem. For solution providers thinking about where the platform wars are heading over the next five years, this fund is part of that story. New data released yesterday by Fortinet paints a stark picture of Canada’s position in the global threat landscape. According to the company’s 2026 Global Threat Landscape Report and its companion 2026 Cybersecurity Skills Gap Report, Canada has moved from third to second globally in ransomware attacks, with 374 Canadian organizations extorted last year. Total cyberattacks against Canadian targets surged to 17 billion in 2025, up from 13.7 billion the year before. Fortinet’s FortiGuard Labs says the time-to-exploit for critical vulnerabilities is now running two to four times faster than it was, driven by threat actors deploying agentic AI to accelerate reconnaissance and execution. The skills picture compounds the problem: 47 percent of Canadian IT leaders cited a lack of cybersecurity talent as a top cause of breaches, and 49 percent say they struggle to hire staff with specific AI security experience. That combination – faster attacks, a shrinking talent pool – is exactly the kind of environment where a strong MSP security practice becomes a business necessity for SMB clients, not a nice-to-have. Derek Manky, chief security strategist and global vice president of threat intelligence at FortiGuard Labs, called it an “industrialized defense” challenge. New research from Barracuda released this morning adds another dimension to the threat picture. Based on an analysis of 3.1 billion emails, the company’s 2026 Email Threats Report finds that one in three emails is now malicious or unwanted spam. According to Barracuda, 48 percent of malicious email activity is phishing, 34 percent of organizations experience account takeover at least once per month, and 90 percent of high-volume phishing campaigns now use phishing-as-a-service kits. Perhaps most notable for the managed services conversation: 70 percent of malicious PDFs now hide phishing links inside QR codes, a tactic specifically designed to bypass traditional email filters. Barracuda positions the core finding as a shift in attacker strategy – away from noisy malware and toward stealthier, trust-based techniques that use compromised accounts and familiar file formats to slip past defenses. The report identifies growing demand for layered email and identity protection combined with automated response, which points directly to an opportunity for service providers helping customers with lean IT teams who are already stretched managing alert volume. In Brief – Calian Group has completed its acquisition of U.S. managed service provider Computex, expanding the Ottawa-based firm’s American footprint and cybersecurity capabilities. Crogl has begun a private rollout of its AI-powered SOC platform, positioning it to help service providers automate threat response and cut alert fatigue. Pax8 and NinjaOne have announced a partnership starting as a referral motion, giving MSPs a path to RMM and unified IT operations tools while the companies work toward future marketplace integration. TD SYNNEX has given MSPs reserved access to NVIDIA GPU capacity through a deal with Nebius AI Cloud, letting channel partners deliver AI infrastructure services without buying hardware or competing with hyperscalers for GPU supply. Full details and links in the show notes or the blog post. Later today on In The Channel, I sit down with Joel Abramson, managing partner at Top Down Ventures, to go deeper on the Founders Fund close – the LP flywheel strategy, the zofiQ exit, and what it means for the companies building the next generation of MSP software. And if you missed it yesterday, check out my conversation with Steven Kiss, partner and national ServiceNow practice leader at EY Canada, on what building Canada’s first ServiceNow elite partner teaches you about what is coming next in the agentic enterprise. That’s how we’re seeing the headlines today. I’m Robert Dutt for ChannelBuzz.ca, thanks for listening. Have a great day.

Joel Abramson, managing partner at Top Down Ventures Today’s In The Channel episode lands on the same morning that Vancouver-based Top Down Ventures announces the close of Founders Fund I at C$38 million – oversubscribed against an original target of US$25 million, and positioned as the first institutional venture fund focused exclusively on early-stage software and AI for the managed service provider ecosystem. Managing partner Joel Abramson joined the show to walk through the fund’s thesis and what it means for the channel. Abramson co-founded and led Fully Managed through more than a dozen acquisitions before its $137 million acquisition by Telus Business Solutions in 2021. He joins general partners Chris Day (founder of IT Glue and ScalePad) and Mark Scott (founder of N-able) at Top Down – three operators who between them have spent about 75 years building and scaling companies inside the MSP ecosystem. The fund’s first exit – zofiQ to ConnectWise, which closed in January 2026 – returned 5.3 times the invested capital in roughly six months. Abramson describes it as a case study in what Top Down looks for: founders solving singular problems with exceptional depth, validated by real MSP operators rather than generalist investors. The macro thesis is equally compelling. The global IT services market is projected to grow from $600 billion to over $1 trillion by 2030. And in 2026, SMB IT spend is on track to outpace enterprise IT spend for the first time ever – a shift Abramson contrasts with what he calls the “SaaSpocalypse” in enterprise, where headcount reductions are translating directly into fewer SaaS licenses. The fund’s LP base of more than 100 MSP operators – including Pax8 – acts as a flywheel for validating investments, sourcing design partners, and connecting portfolio companies with the customers best positioned to stress-test what they’re building. Find Top Down Ventures, including their newsletter and annual research report, at topdown.com. Read Full Transcript Robert Dutt: Hello and welcome to In The Channel from ChannelBuzz.ca, bringing news and information to the Canadian IT channel community for the last sixteen years. I’m Robert Dutt, editor of ChannelBuzz.ca and your host for the show. If you caught The Buzz this morning – and you really should have – you already know the headline. Vancouver-based Top Down Ventures has closed Founders Fund I at $38 million Canadian, oversubscribed, as the first institutional venture fund focused exclusively on early-stage software and AI for the managed service provider ecosystem. The story behind it, though, is rich. Top Down was founded with three partners with deep roots in the Canadian channel community: Chris Day of IT Glue and ScalePad, Mark Scott who founded N-able, and today’s guest, Joel Abramson, who ran Fully Managed through more than a dozen acquisitions before its $137 million sale to Telus Business Solutions in 2021. The fund already has its first exit in the books. zofiQ, an agentic AI platform for MSP service desks that ConnectWise acquired just six months after Top Down’s investment, at 5.3 times the invested capital. Joel joined me this morning to talk about why MSP software needs its own dedicated venture fund, what the first exit tells us about where agentic AI is headed, and one market shift that has the team genuinely excited about the decade ahead. Let’s get right into it. My chat with Joel Abramson. Joel, thanks for taking the time. I appreciate it. Joel Abramson: Great to be here, Rob. Robert Dutt: I wanted to start with the origin story here. I think it’s an interesting one in that you had a big role in building and running Fully Managed through a dozen or so acquisitions, then sold – instead of going off and retiring on a boat somewhere or that sort of thing, you ended up in venture investing in specifically MSP software. Can you walk me through how that happened? How did Top Down come together? Was this something that you sought out or something that Chris Day pulled you into? How did that happen? Joel Abramson: Yeah, well, let’s be clear – I do love being on boats. To tell the origin story, you get to go through a 25-year journey of the MSP ecosystem itself, because there are three general partners: Mark Scott, Chris Day, and myself, Joel Abramson. Our journey dates back to the early 2000s when Mark Scott started N-able, and he was one of the pioneers that really helped value-added resellers and break-fix IT service providers become MSPs. I meet people every time I’m out on the road who have a story about working with N-able – transitioning their revenue model from break-fix to recurring. N-able is a phenomenal company today and I think Mark’s legacy lives on there. Mark started that company and then exited just before the SolarWinds acquisition. Then he went on to start a service provider called CareWorks – an MSP focused on senior care facilities. A really interesting vertical, as well as broad SMB. But I’ll pause his story and focus on Chris, because Chris is founder and chairman and really sets the vision for Top Down. Chris had an MSP as well back in the early 2000s. Eventually that was Fully Managed, and that’s where I joined him. I had a small – much less successful – MSP called Packetsafe Networks, and I rolled my little MSP into Chris’s marquee MSP, Fully Managed, and together we set on this journey. We wanted to bring that company to ten cities with $10 million in revenue in each city and then sell it to a Canadian telco – and it’s not revisionist history, it was actually the goal. But then a couple of years into our shared journey at Fully Managed, Chris got pulled into building software. It was because I’d built a bunch of software for Fully Managed to run on, and he made the mistake – or the fortuitous opportunity – of showing it to his peer group. His peer group was like, “I want to use that.” So he said, “Okay, well, I’ll build it for you.” He started building a documentation platform from the ground up and called it IT Glue, and that was a phenomenal ride for him – taking it from a couple of peer group mates trying it out to selling to Kaseya in 2018 and building a very large company in a relatively short amount of time. Not without a tremendous amount of hard work and grind. He was on the road with pop-up banners signing up logo by logo by logo in the early days, but eventually the movement just took shape and every MSP realized that they needed a documentation platform, and IT Glue took off. So IT Glue exits to Kaseya in 2018. Chris has to make that decision: do I want to golf and travel for the rest of my life, or what brings me joy? And so he actually started Top Down as a way to re-engage back with the MSP community. He had an early portfolio of three companies: Warranty Master, a company he had started with his brother; Backup Radar; and Quoter. Together those three early companies started to grow at their own individual pace. Keep in mind, we’re still running Fully Managed over here – I’m running it for him. Then we ended up putting Fully Managed together with Mark Scott’s MSP, and that’s how the three of us came together. Then yes, we did a number of acquisitions. We grew Fully Managed to be $100 million in revenue. It wasn’t the straight line Chris and I had talked about – ten cities in ten years – but it was maybe seven cities. The bridge version: Telus came in and said they wanted to acquire Canada’s largest MSP, which was Fully Managed at the time. They had done a bunch of research and nine months later we consummated that transaction, at the end of 2021. I’d been working with Chris for a number of years on the early-stage portfolio, because we’d get a couple of calls every month with people saying, “Hey, I’m starting this project, Chris, are you interested in taking a look?” So we started to build this reputation as investors in early-stage MSP software companies. We tried some other stuff – everything from consumer packaged goods (we still have a couple of investments) to starting a country music label, which we’ll save for another time. But we always knew our home, I think, was in the MSP space. After the Fully Managed exit, we decided we wanted to really compound our impact. We had this idea of a venture fund – and maybe I’ll pause there, because I can continue the journey, but we’ll wait and see if you have any questions up to that point. Robert Dutt: Understandable. It’s a wild journey, and it really is back to the heart of the early days of the MSP movement – as you say, from break-fix and VAR models. I guess tell me a little bit about where you’re at now. The fund is positioned as the first institutional VC targeting early-stage software and AI for this ecosystem. Why do you think this space needs a dedicated fund? What does a generalist venture fund miss or get wrong when they’re looking at the space? Joel Abramson: We’ve been doing early-stage investing for a few years – five years. At the same time, Warranty Master became ScalePad, and ScalePad started to gain really, really great momentum. ScalePad brought in a growth equity partner, Integrity Growth Partners, who are just phenomenal folks. They capitalized the business and that grew ScalePad from $10 million to $50 million. They were great partners, great board members, and we watched these guys – we were like, wow, we’ve been through this journey a couple of times. They add a lot of value, and we’re really excited about that relationship. We were doing our thing with the early-stage companies, and so we looked across the ecosystem. We said, there is a ton of capital that’s ready to invest in companies in the MSP ecosystem when they get to a certain scale – that was kind of the scale that ScalePad had gotten to. Then we looked down and said, well, what about the guys that are just starting out? There’s not a ton of support. There’s a ConnectWise pitch contest that grants $60,000 or $70,000 to early-stage companies. And there are early-stage investors – we’ve seen companies like Pax8 and Huntress go through many rounds of financing and they started somewhere. But we saw that the strongest source of capital in the MSP ecosystem was actually coming from angel investors. It was Joe Paniterri and Kevin Blake and Channel Angels, and they had done a number of deals, bringing together really early-stage capital and putting $100,000 into a business fueled from a number of different folks. That’s really, really cool. But where’s all the venture? You look across horizontal software and there are funds of venture that just pour in. In the big markets – the Valley and New York – and then in secondary markets, there are funds focused on those areas. But we saw early-stage MSP software companies as vastly overlooked. So we said, what if we could bring together capital from the MSP ecosystem? Because we’ve made plenty of millionaires just by acquiring them with Fully Managed. You look at how that scales out across the ecosystem: you’ve got Evergreen and Integris and Thrive and all these folks buying up MSPs. The stats are over 200 search funds, family offices, and MSP aggregators buying MSPs right now. That’s generating a lot of wealth for a lot of people. Then you have MSPs that are super profitable and people are making good cash flow. Then you have all the software companies that have exited with similar stories to Chris’s. There’s actually quite a bit of capital that could be put to work back into the ecosystem if we just found a way to harness it and focus it on innovation. We said, instead of doing a couple of deals a year, what if we could make 8 to 10 investments a year by bringing capital together? And then what if we could build a system around that to take everything we’ve learned working with early-stage companies – applying those practices, bringing folks together for design partners, early customers, advice, and partnerships in the MSP ecosystem? So we set out to raise a $25 million venture fund, and we said we were going to focus on educating the MSP ecosystem on what investing in a venture fund looks like, because it’s really just going to fuel innovation for MSPs themselves. Our goal was to have half the fund raised from the MSP community and half from outside – similar to what it was at Fully Managed: let’s tell the world about what a great opportunity exists in MSP. We were super successful in the first bucket. We got really well received by the MSP community. We have over 100 LPs in the fund and we exceeded our target of $25 million. In the second bucket, we still have a lot of work to do. We’re one year into our Outliers podcast, we’ve produced one white paper, and we’ve had hundreds and hundreds of conversations in the institutional community, educating funds of funds and family offices on the opportunity for early-stage MSP software investing. We only got a couple of participants in this fund – which is all right, because it shows the strength of the MSP ecosystem. We still oversubscribed our target. But we’re excited to continue that journey of educating institutional investors for our second fund and beyond. Robert Dutt: You mentioned you’re in at the early stage. Where in the lifecycle do you typically start looking, and what does a target portfolio company look like at the point you’re getting involved? Joel Abramson: I’ve only been doing this for a few years, so I’m still learning some of the language, Rob. But we talk about early stage being right at inception – which is called pre-seed, the first money into a company. Maybe they have an idea of what they want to build, a prototype, a business plan, some people, but they haven’t actually started that path to launch – all the way up to around that first million or million and a half of revenue, where they’d be called a late-seed investment or an early Series A. So maybe it’s the second money in, or in a Series A it could be the third. But really we’re focused on the early stage where we can leverage the strength of our LP base – a lot of strong MSPs – as well as the strength of the community that Top Down works to enable and bring together. That can be for design partners, early customers, folks to help with advice, and then partnerships in the MSP ecosystem. Maybe a company is working with ScalePad to solve a problem and ScalePad can help by bringing that product to its customer base. It’s really about building the things that matter most to MSPs. And that’s why I think we love this ecosystem so much – it’s a partnership of vendors and service providers. If we look forward to how AI is going to impact things, you have small and medium businesses at the frontline – all the enablement use cases there, all the cybersecurity use cases. Then you have the service provider layer, which is MSPs helping them with all those things. Then you have a middle layer of supply chain software like the companies we invest in. And on top of that, you have the hyperscalers, the cloud companies, the frontier companies. That four-tiered system really matters, because without the innovation from Microsoft and Anthropic, the macro doesn’t move forward. But very rarely is it going to go straight from there into frontline workers’ hands. The two layers in between – the layer we invest in, and the MSPs themselves – are really what’s helping bring the value from the top to the end market. We think it’s an incredibly resilient ecosystem. We think there’s nobody better positioned to help with AI transformation than MSPs. And that layer between the frontier companies and the hyperscalers and the MSPs is really important – that’s where innovation happens on their behalf, and that’s the kind of companies we’re investing in. Robert Dutt: One example of that would be zofiQ, which I think was your first exit – and some pretty startling numbers there: a six-month turnaround, selling to ConnectWise, bringing back more than 5x what you put in. What did you see in that company that made you say “we’re in,” and what did the ConnectWise acquisition tell you about the market for PSA and agentic AI and where that’s all headed? Joel Abramson: It starts with Lee and his team. We get the fortunate opportunity to look at a lot of things that are being built and we’re still learning, trying to keep pace. As the last couple of years have played out, we’ve been students of what people are building and how they’re looking at solving problems, armed with the knowledge of the last 25 years of the ecosystem. When we met Lee, we were really impressed with him as a founder. He had a strong track record of purpose-building solutions. When Chris and I sat down with him, it was obvious he was solving singular problems with a tremendous amount of depth, versus some of the other folks we’d seen building solutions who were really going an inch deep and a mile wide. Knowing how mission-critical these solutions are to MSPs – that for every time they mess up a service ticket, they put that customer relationship at risk – we knew that Lee’s approach was just bang on. He was obsessed with solving singular use cases. It showed in the team he put together, the technology he built, and what customers were saying about the product. It’s very atypical to make an investment and then six months later have it acquired. When it was all going down and we were talking to the ConnectWise folks, it was bittersweet. We’re so happy to see ConnectWise gain this incredible capability, but we were sad to know we weren’t going to have Lee in the Top Down portfolio anymore. Ultimately, thrilled – because what it means for ConnectWise is that they can get this really powerful technology into a lot of people’s hands. That has a tremendous impact for the ecosystem, the end market, the MSPs partnered with ConnectWise. They can get this great innovative technology out into the market much faster than Lee could on his own, just going out and telling the story and waiting for the momentum to build. Thrilled for ConnectWise, thrilled for Lee and the team to jump into an organization like ConnectWise. And proud that we were able to play a tiny part on that journey. Robert Dutt: zofiQ was automating the service desk with AI agents. From what you saw inside that experience with them, and looking across the portfolio now, I’m curious – especially given your background running an MSP – when you’re talking to MSPs about what some of these companies are doing, how ready are they to adopt and operationalize this kind of agentic tooling? Both in terms of willingness and interest, which I’m sure is high, and actual aptitude and ability to make the operational changes that come with it? Joel Abramson: It totally depends on the MSP’s maturity. I’ve been through the life cycle of MSP maturity many times – two steps forward, one step back, a bunch of times. Every MSP is on a similar treadmill of growing and maturing, then having to embrace new technology, then getting hit by outside factors: whether it’s COVID, the move to remote work, the push back to the office, or the change in technology. It’s not a static industry, but it is an industrial-strength ecosystem because it’s so mission-critical for the customers MSPs serve. Everybody is at their own part of the journey. Companies like zofiQ come around and they focus on building the right technology, then working with the ideal MSPs that are at a place where they can embrace it. I go back to an inspirational investor, Dave Lahn, who always talks about the different buckets of work: the hero work, all the work that supports the hero work, and then all the work that should be done but isn’t. I think about MSPs with that third bucket. As a 20-year MSP operator, there were all these things I knew I wanted to do but could never get around to because we were always fighting fires, then trying to do proactive work, then project work – it compounds and you never had enough hands for the work that should be done that isn’t. I think that’s one of the huge opportunities with AI – actually getting that work done, staying on top of it, and providing more stable, secure environments for MSP customers. If AI is the great enabler for MSPs themselves, then how exciting is it to be in a position where I can’t think of a service provider that supports small and medium businesses that’s better positioned to bring AI enablement down to that market than an MSP. I doubt it’s the accountant, I doubt it’s the janitor or the maintenance people. I think it’s the MSP, because you’re already talking technology. As MSPs continue to evolve from the server room to boardroom conversations, AI is an incredible hook to get into that conversation. That’s why the work ScalePad does around customer success and supporting the strategy conversations is so critical. But the next wave of companies we see are really around helping MSPs actually deliver AI use cases successfully to their customers. That transformation will take place for a long, long time. Robert Dutt: Your base of limited partners includes more than 100 MSP operators, including Pax8. That’s unusual for a VC fund. Was that a deliberate choice? And how does having operators as limited partners actually change how you source and evaluate deals? Joel Abramson: It just makes us so strong. We have the brainpower of over 100 people there for us to tap and leverage. At our Horizons event in November – where we bring all of our LPs together – I’ve never seen a more aligned group of individuals, focused on supporting the supply chain of an ecosystem, come together and have meaningful conversations without any real individual agenda. We think about it as a flywheel. We have a group of limited partners with all of our capital in this fund together. Of course we all want to make money – but I think what drives that outcome is supporting innovation and figuring out exactly where the best place to put capital is today that can have the largest impact tomorrow. zofiQ is a perfect example. Here’s a strong founder with a huge problem, solving it at the deepest level, that MSPs are going to be able to take forward and dramatically impact their businesses and their customer experience. That, to me, is the genesis of venture investing: aligning all those things and putting the right pieces together. We think about the strength of the mindshare of our LPs, figuring out ways to connect them with our portfolio companies, ways to validate our thesis and investments by harnessing that energy, and then making the right investments and providing the right support throughout a portfolio company’s lifecycle, thanks to that really, really strong LP base. Robert Dutt: So if I’m an MSP owner listening to this – not an investor per se, just someone running a managed services shop – why should I be paying attention to what you guys are doing and what you’re funding? What’s the typical practical downstream impact on my business? Joel Abramson: You could look at our portfolio with a degree of confidence that these companies are getting great support to build great products, that they’re talking to top MSP operators around the world to help shape what gets built. The average MSP is the benefactor of that, because it means they’re getting great product built that they can use in their MSP or deploy to their customers. We’re doing this to earn and keep the reputation that a Top Down-backed company means tier-one innovation, great people behind it, that it’s been validated and tested – and that MSPs themselves can be the benefactor of that by leveraging this technology. Robert Dutt: You closed this fund at about $38 million, oversubscribed, in what you called a slog of an environment – and I get that. What does that tell you about where institutional capital is actually flowing in 2026? And what does a successful Fund I set up for Fund II? Joel Abramson: A lot of institutional capital is flowing towards the frontier companies and the supply chain of AI. We think that’s great, because just like the Microsofts and Googles that have powered the ecosystem for the last ten years, we think heavily capitalized AI companies are fantastic for the downstream companies – the software companies we’re investing in, the AI companies we’re investing in, the MSPs themselves, and the SMB layer. Capital flows down as well. As vertical-focused funds like ours demonstrate a strong track record, more institutional capital will flow into vehicles like ours. Certainly a lot of capital is tied up at the top right now, but we see that as a great thing because we’re not super concerned about the capital cycles of the next three months. We’re much more concerned about the capital cycles of the next two decades. As we’ve mobilized a non-insignificant pool of capital to support early-stage MSP software companies, we strive to earn the right to have a second fund with a more diverse group of participants, and subsequent funds beyond that – as long as we continue to find the right companies to partner with and add value along the way. Robert Dutt: And that seems like – just with the names you’ve mentioned and the names I can think of off the top of my head – a target-rich environment. There are lots of companies building specifically for the MSP market for obvious reasons. But I’m curious: without necessarily naming names or tipping your hand, what problem or product category are you most excited about in the MSP software pipeline right now? Where’s the white space that’s still underbuilt? Joel Abramson: In our research paper, we talk about two big macro things happening in the market right now. One: we think this market – let’s broaden it to IT services, not just MSP – is going from a $600 billion addressable market to a $1.3 trillion addressable market, certainly $1 trillion by 2030. That’s a huge market. On the MSP side specifically, we have four or five scaled companies at or above a billion in revenue. Ninja is on its way up there. N-able, of course, is a big company. But you’re talking about a much larger addressable market – there’s still empty canvas where new companies can scale up to fill the middle and eventually be alongside some of those platforms. We expect those platforms to continue to grow and thrive, and we hope to build or invest in companies that can partner with them to take advantage of their distribution and ultimately make small and medium businesses better through MSPs. All that said, what are some of those categories? I don’t think it’s new MSPs starting up and buying PSA – that market is fairly saturated. Nor do I think it’s more EDR or XDR – those are pretty saturated markets too. There’s still market share that will trade, don’t get me wrong, and innovation will build on top of it. But doubling the market requires new products, new revenue streams, and obviously AI is a critical part of that. Whether it’s the evolution of agentic service work to do all the work that should be done but isn’t, or raising productivity levels so the service is that much better, or helping the average SMB with a sophisticated IT strategy that evolves into an AI strategy – we see the category of AI services enablement for MSPs as a huge, huge opportunity. In the enterprise, we’re living through what I call the SaaSpocalypse – the idea that big SaaS companies are going to see fewer licenses because people are going to downsize headcount and thus take an impact on their top line. But we see the SMB market as more resilient, because my accountant with 60 people and one person in marketing – they’re not going to downsize that one-person marketing department. That person is actually just going to get that much better thanks to all the tools they’re using. SMB IT spend is expected to outpace enterprise IT spend for the first time ever in 2026. We believe that’s because of the resiliency of the SMB market – the idea that when a big tech company lays off 5,000 people, those people don’t all sail off into the sunset. A lot of them move into the SMB economy and start small businesses. Maybe the IT folks start an MSP. So we see the SMB part of the economy continuing to thrive, and it’s showing itself this year – thanks to this crazy stat that SMB IT spend will outpace enterprise IT spend for the first time ever. For all those reasons, we’re very excited about the opportunities it creates in the companies that we’re invested in. Robert Dutt: That is a crazy stat, and it’s worth underlining – because of where you and your peers and so much of this community is focused, right in that SMB space. And closer to home, as a Canadian podcast, we’re very much a nation of SMBs. So it really is super impactful here. Joel Abramson: Yeah, I would agree. Robert Dutt: For people who want to follow what you guys are doing – whether they’re founders, MSPs, or just interested in what’s coming in terms of new AI-first MSP software – where do they find you? How can they find out more? Joel Abramson: TopDown.com. We publish a newsletter and try to share all the learnings we’re gaining each quarter. We publish a white paper annually. We have a conference in November called Horizons – if you’re interested in investing in the MSP ecosystem, our goal is to bring everybody together as peers. We do a lot of dinners and events around the big MSP events. Our goal is always to bring everyone together as peers, not in a supplier relationship where you’re being sold to – just everybody trying to solve this thing together. The community aspect of the MSP ecosystem is so strong, and that’s how you engage. I’m pretty easy to find and always interested in a conversation with anybody from inside the ecosystem or outside, as we try to build this thing one brick at a time toward 1.3 trillion of addressable market. Robert Dutt: Brilliant. Go get that. Go build that. I appreciate you taking the time, Joel. Joel Abramson: Thank you so much for having me. Robert Dutt: There you have it – Joel Abramson from Top Down Ventures. I’d like to thank Joel for his time this morning. Thank you as always for listening to In The Channel. A few things stuck with me from this conversation. First, the framework Joel described: frontier AI companies at the top, then the supply chain software layer that Top Down invests in, then MSPs, then SMBs at the front line. It’s a clean way to think about how AI value actually gets delivered to small and medium businesses. And the point that MSPs are the most natural vehicle for that delivery is hard to argue with – from where I sit, and probably from where you sit too. Second, that stat about SMB IT spend outpacing enterprise IT for the first time ever this year. If we’re in what Joel calls the SaaSpocalypse for the enterprise, we’re in a resilience story for SMB. For an audience of MSPs, that’s your market, and that’s your moment. And the zofiQ story. A six-month hold, 5.3 times the invested capital to ConnectWise. What Joel said about what made it work – going deep into a singular problem rather than an inch deep and a mile wide – is as much a product philosophy lesson as it is a venture capital story. If you want to follow what Top Down is doing, find them at TopDown.com, where they publish a regular newsletter and annual white paper on the state of MSP capital. Their Horizons conference runs every November if you’re engaged in this ecosystem as a founder, an operator, or an investor. If you’re enjoying the show, please give the podcast a follow or subscribe on Apple Podcasts, Spotify, YouTube, or most of the major podcast directories. Ratings and reviews are always encouraged. Until next time, I’m Robert Dutt for ChannelBuzz.ca, and I’ll see you in the channel.

In the final episode of Season 12, I am joined by industry veteran Pete Hughes to discuss the evolving landscape of Managed Service Providers (MSPs) and the transformative power of AI. With over 20 years in the industry, Pete shares insights from his journey from an internal techie to building and growing MSPs. The Evolution of Proactivity: The shift from time-and-materials to fixed-price services has forced MSPs to move beyond simple automations (like restarting a service) toward real proactivity that prevents issues before they occur. The AI Relevance Challenge: Pete emphasizes that AI is not just a tool but a necessity for staying relevant. MSPs must adopt AI internally to drive efficiency and profitability, or risk being replaced by those who do. Consultative Selling: Rather than selling "AI tools," Pete advises MSPs to have business-first conversations—identifying process inefficiencies and then translating how AI can solve those specific challenges. PSA Insights: Pete introduces his new platform, PSA Insights, which uses AI to analyze massive amounts of ticket data in common PSAs (Halo, Autotask, ConnectWise). The tool surfaces patterns, identifies common problems costing money, and provides remediation plans. User-Driven Agents: A fascinating prediction discussed is that in the future, creating AI agents will be as common as creating a PowerPoint, with end-users driving implementation while MSPs provide the guardrails and policies. When he isn't revolutionising MSP data, Pete can be found helming (or steering, for the cool people) his yacht along the South Coast of the UK, a passion he has pursued for 40 years. Connect with today's guest on LinkedIn here or check out their website hereMusic - https://www.purple-planet.comKey Discussion Points:Downtime & Diversions

Jennifer Bleam is an award-winning speaker, best-selling author, and one of the most recognizable voices in the MSP world when it comes to sales, marketing, cybersecurity, and now AI. Her book, Simplified Cybersecurity Sales for MSPs, has earned nearly 200 reviews, and her work today is centered on helping MSPs understand the AI opportunity, package it correctly, and lead better business conversations with clients. She's spoken at a long list of industry events hosted by organizations like ConnectWise, Continuum, Kaseya, Auvik, Technology Marketing Toolkit, CharTec, ASCII, and ChannelPro, and she's built a reputation for making complex growth topics easier to understand—and easier to act on. What makes Jennifer especially compelling is that she's not coming at this from theory alone. She owned an MSP, coached more than 2,000 MSPs on sales and marketing best practices, and helped grow a channel-focused cybersecurity company from startup to acquisition in less than two years. Through MSP Sales Revolution, she now helps MSPs design more human-centered sales and marketing systems, with a strong focus on practical execution, stronger positioning, and real revenue growth. ________________________________________________________________________________________________ Links:  https://mspsalesrevolution.com/about/ https://www.youtube.com/c/JenniferBleam facebook.com/groups/mspsalesrevolution linkedin.com/in/bleamjennifer

Today’s headline news for Canadian IT solution providers: ServiceNow’s partner momentum is real – and the model is changing. Opening the Partner Day Keynote at Knowledge 2026 in Las Vegas Monday, SVP of Global Partnerships and Channels Michael Park led with a pointed Q1 headline: partner-sourced net new ACV doubled year-over-year, and partners delivered more than 50 per cent of Moveworks‘ net new business in the first 90 days following ServiceNow’s acquisition. The numbers put muscle behind a message the company is driving hard: this is a partner-led growth engine, not a direct play. The company rolled out two new tools to cement that model – a Partner Business Value Composer designed to help partners establish AI value baselines with customers, and a new Outcome Led Services methodology designed to move partners away from traditional time-and-materials billing toward monetizing business outcomes. As Constellation Research founder Ray Wang put it on stage: “The companies that will win are not the partners who try to rebuild the engine – they use the engines available to build the new car that doesn’t exist.” Three questions are opening every enterprise AI conversation – and governance is the one that’s sticking. Chief Customer Officer Chris Bedi laid out the framework partners should be using: How do I make AI real? How do I get to value faster? How do I govern AI everywhere? The governance question is emerging as the highest-urgency entry point – every enterprise is grappling with it whether or not they’ve articulated it. ServiceNow is positioning AI governance as the non-negotiable building block of any enterprise AI deployment, and is expected to announce a formal 100-day AI value guarantee at today’s Knowledge mainstage keynote – an offer partners will be able to use as a standardized starting point for customer engagements. The customer conversation is also shifting: “Pacesetters” that Bedi tracks as AI leaders are demonstrating 160 per cent ROI, and the story is no longer about cost reduction. Top-line revenue growth is what’s getting approvals right now. Nine in ten ServiceNow implementations go through partners – and the company is investing in that reality. Chief Learning Officer Jayney Howson put a sharp point on the session with a single stat: 90 per cent of all ServiceNow implementations are delivered by a partner. She framed the implication plainly: “You’re the last mile between buying an AI dream and seeing an AI reality.” In response, ServiceNow is making a significant investment in partner enablement – AI-assisted learning tools, a new simulated training environment, and a commitment to dramatically compress implementation training time from weeks to hours. The platform has approximately two million certified learners today, with a target of three million by end of next year. For Canadian partners evaluating where to deepen their ServiceNow practice, the message was hard to miss: the enablement infrastructure is being built, and the company is betting its partners are the ones who make the AI era real for enterprise customers. Also in brief: Nerdio launches Manager for MSP 7.0 as Microsoft cloud growth surges. The multi-tenant Microsoft management platform announced today that MSP ARR grew 51.8 per cent in 2025, with Microsoft 365 users inside the platform up more than 300 per cent year-over-year as MSPs expand their Microsoft practices beyond virtual desktop. Version 7.0 – in public preview as of today – adds four notable capabilities: a Prospect Tenant Assessment Wizard that scans a prospect’s Microsoft 365 environment and generates a client-ready security and efficiency gap report; native PSA integrations with Datto Autotask, ConnectWise, and Halo; Microsoft Purview compliance baselines; and a white-label reporting engine across Azure Virtual Desktop, Microsoft 365, and Azure. For MSPs trying to manage the whole Microsoft stack across dozens of tenants from a single pane of glass – and increasingly looking for tools that help them sell, not just manage – 7.0 has some practical additions worth a look. Anthropic takes a swing at the consulting industry. The company behind Claude announced today a $1.5 billion joint venture with Goldman Sachs, Blackstone, and Hellman & Friedman – not to license Claude, but to embed it inside enterprise workflows as a service. The model is being read as a direct shot at traditional consulting firms, and a clear signal about where AI services margin is flowing. For channel partners building AI practices, the venture is worth watching: Anthropic is structuring this as outcome-based deployment, backed by institutional capital that can go places traditional IT channel distribution cannot. ThreatDown makes a major channel pivot. The Malwarebytes spinoff announced last week that it has rebuilt its entire go-to-market model around a channel-first strategy – growing distribution from one per cent to 40 per cent of its business. The company is launching a new Nexus Partner Program with deal protection and margin incentives specifically designed for MSPs. For a cybersecurity brand that has been largely direct-led, this is a significant reversal and puts ThreatDown in direct competition for MSP mindshare with established channel-first security vendors. Cisco is acquiring Astrix Security for $350 million. The Israeli startup specializes in non-human identity security – securing the API connections, OAuth tokens, service accounts, and AI agent identities that are multiplying fast as agentic deployments scale. It’s a logical buy for Cisco as the attack surface around AI agents becomes one of the harder problems in enterprise security. Read Full Transcript TRANSCRIPT TO COME

The core structural shift highlighted is the movement of security for Managed Service Providers (MSPs) from best-effort practices to a regulated, continuously verified service operation. This change is being driven by the compression of vulnerability exploit timelines as a result of attackers leveraging both automation and AI, and by regulators imposing hard patching and compliance deadlines. Companies such as ConnectWise and Microsoft are central, with federal agencies (CISA) now converting exploited vulnerabilities into time-bound remediation mandates. A significant development underscoring this shift is the addition of two known exploited vulnerabilities—CVE-2024-1708 in ConnectWise ScreenConnect and CVE-2026-32202 in Microsoft Windows Shell—to CISA's remediation requirements. Agencies must address these by May 12, 2026, marking a move from tracking to deadline-driven action. Reports from Huntress and TechCrunch confirm that real-world attackers rapidly exploit public vulnerability information, and Microsoft's own documentation illustrates attackers increasingly using Microsoft Teams for social engineering, remote assistance, and privilege escalation. Supporting developments include major vendors like Microsoft integrating models from Anthropic into their security development lifecycle to accelerate vulnerability discovery and remediation. However, studies noted by The Hacker News and The Verge indicate that AI-driven discovery is outpacing operational capacity, creating a growing discovery-to-remediation gap. At the organizational level, information from the Reveal 2026 IT Talent Survey indicates that 8 in 10 technology leaders face significant shortages in AI and cybersecurity skills, compounding the operational burden of continuous security verification. For MSPs and IT leaders, these factors combine to increase operational complexity, require more explicit contract scoping and evidence obligations, and shift oversight from periodic compliance towards continuous, demonstrable verification. Contractual ambiguity—especially when services are described as “best effort”—exposes providers to unmeasured labor and unassigned accountability. Practical steps now include reclassifying business collaboration platforms as active attack surfaces, formally auditing and documenting previously “invisible” tasks, and aligning internal operations with external, regulator-mandated verification standards. 00:00 AI Patches Gaps 05:10 Discovery Isn't Enough 07:11 Reprice or Absorb 10:24 Why Do We Care?  Supported by:   Moovila  Zero Networks   Upcoming event:  The Pivotal Point of IT: Building Services for the AI-First Era Date: May 13 at 1p.m. EDT Register: https://go.acronis.com/davesobelaiera  

Today's brief covers the published Presidential major disaster declaration for the Commonwealth of the Northern Mariana Islands following Super Typhoon Sinlaku, the FEMA Alaska recovery update on Typhoon Halong, and CISA's addition of two actively exploited vulnerabilities (ConnectWise ScreenConnect and Microsoft Windows Shell) to the Known Exploited Vulnerabilities catalog. Wildfire activity in southern Georgia and northern Florida continues to drive Southern Area resourcing at PL 4, and critical fire weather is in place across eastern New Mexico, far western Texas, and the southern High Plains. Tornado damage assessments continue in Tennessee and Illinois, Michigan expanded its flooding state of emergency to 41 counties, and a M4.4 earthquake near Alamo, Nevada produced felt reports into Las Vegas. EM Morning Brief is your concise daily update on national and state-by-state emergency management news. Produced by Sitch Radio, an EOC Voices podcast.Key Takeaways• CNMI major disaster declared: FEMA-4910-DR for Super Typhoon Sinlaku was published in the Federal Register yesterday; covers incident period April 11 to April 18, 2026.• CISA KEV update: Two actively exploited vulnerabilities added: ConnectWise ScreenConnect (CVE-2024-1708) and Microsoft Windows Shell spoofing (CVE-2026-32202). Federal remediation deadline May 12, 2026.• Southern wildfires: Brantley Highway 82 Fire in Georgia at 32 percent containment with 80 plus homes destroyed; Clinch and Echols fire at 23 percent containment over 50 plus square miles; Florida Gun Range and Sand Drain fires under continued USFS warning.• Critical fire weather: Red Flag and Critical Fire Weather conditions today for eastern New Mexico, far western Texas, southern High Plains, and portions of eastern Colorado.• Texas disaster declaration: Governor Abbott declared disaster for Lamar, Parker, and Wise counties; TDEM mobilized swiftwater rescue and debris teams; Mineral Wells continues recovery from Tuesday's EF3 tornado.• Michigan emergency expanded: Whitmer added Tuscola County and the Village of Holly to the existing flooding state of emergency; 41 counties and three municipalities now covered.SponsorsThe NIMS Store - https://thenimsstore.com/SourcesCISA• CISA KEV catalog (April 29, 2026), ConnectWise ScreenConnect and Windows flaws added: https://www.cisa.gov/known-exploited-vulnerabilities-catalog?utm_source=em-morning-brief• Security Affairs, CISA adds Microsoft Windows Shell and ConnectWise ScreenConnect flaws to KEV: https://securityaffairs.com/191442/security/u-s-cisa-adds-microsoft-windows-shell-and-connectwise-screenconnect-flaws-to-its-known-exploited-vulnerabilities-catalog.html?utm_source=em-morning-brief• Cybersecurity Dive, CISA adds Microsoft and ConnectWise vulnerabilities to active exploitation catalog: https://www.cybersecuritydive.com/news/cisa-microsoft-connectwise-kev-update/818817/?utm_source=em-morning-briefNIFC and InciWeb• NIFC IMSR (April 29, 2026, 0730 MDT), national fire situation report: https://www.nifc.gov/nicc-files/sitreprt.pdf?utm_source=em-morning-brief• InciWeb, Gun Range Fire (Florida), incident page: https://inciweb.wildfire.gov/incident-information/flfnf-gun-range?utm_source=em-morning-brief• InciWeb, Sand Drain Fire (Florida), incident page: https://inciweb.wildfire.gov/incident-information/flfnf-sand-drain?utm_source=em-morning-briefFEMA• Federal Register, Presidential major disaster declaration for CNMI (DR-4910), Super Typhoon Sinlaku, published April 29, 2026: https://www.federalregister.gov/documents/2026/04/29/2026-08343/presidential-declaration-of-a-major-disaster-for-the-commonwealth-of-the-northern-mariana-islands?utm_source=em-morning-brief• FEMA disaster page (DR-4910), Commonwealth of the Northern Mariana Islands: https://www.fema.gov/disaster/4910?utm_source=em-morning-brief• FEMA press release (April 29, 2026), Alaska Typhoon Halong recovery, FEMA Is Still Here so Stay in Touch: https://www.fema.gov/press-release/20260429/fema-still-here-so-stay-touch?utm_source=em-morning-brief• FEMA disaster page (DR-4893), Alaska severe storms, flooding, and Typhoon Halong remnants: https://www.fema.gov/disaster/4893?utm_source=em-morning-briefUSGS• USGS HVO volcano notice (April 29, 2026), Kilauea ADVISORY and Aviation Color Code YELLOW: https://volcanoes.usgs.gov/hans-public/notice/DOI-USGS-HVO-2026-04-29T14:07:09+00:00?utm_source=em-morning-brief• USGS Earthquake Hazards Program, M4.4 near Alamo, Nevada (April 29, 2026): https://earthquake.usgs.gov/earthquakes/map/?utm_source=em-morning-briefNOAA and NWS• NWS Storm Prediction Center, Day 1 Convective Outlook (April 29, 2026), severe weather guidance: https://www.spc.noaa.gov/products/outlook/day1otlk.html?utm_source=em-morning-brief• NWS Albuquerque, Red Flag Warning summary, fire weather alerts for New Mexico and adjacent areas: https://forecast.weather.gov/wwamap/wwatxtget.php?cwa=usa&wwa=Red+Flag+Warning&utm_source=em-morning-brief• NOAA WPC, Excessive rainfall outlook for central Texas, April 29 to May 1: https://www.noaa.gov/weather-prediction-center?utm_source=em-morning-briefTravel advisories• U.S. Department of State, Travel Advisories, active list with current levels: https://travel.state.gov/en/international-travel/travel-advisories.html?utm_source=em-morning-briefAlaska• FEMA, Typhoon Halong six-month recovery update, April 10, 2026 release: https://www.fema.gov/press-release/20260410/typhoon-halong-six-month-recovery-update?utm_source=em-morning-briefCalifornia• CAL FIRE incidents, current fire activity and evacuations: https://www.fire.ca.gov/incidents?utm_source=em-morning-briefColorado• 9News, Colorado doubles Red Flag Warnings days so far in 2026: https://www.9news.com/article/weather/weather-colorado/colorado-doubles-red-flag-warnings-days-2026/73-dddb29f1-4980-4343-8f2b-c51aa2789f8a?utm_source=em-morning-briefFlorida• WCJB, U.S. Forest Service issues warning for Gun Range, Sand Drain fires (April 29, 2026): https://www.wcjb.com/2026/04/29/us-forest-service-issues-warning-gun-range-sand-drain-fires/?utm_source=em-morning-briefGeorgia• Georgia Emergency Management and Homeland Security Agency, April 2026 Wildfires page: https://gema.georgia.gov/april-2026-wildfires?utm_source=em-morning-brief• News4JAX, Brantley County shifts to recovery, danger not over (April 29, 2026): https://www.news4jax.com/news/georgia/2026/04/29/the-latest-brantley-county-shifts-to-recovery-but-wildfire-danger-not-over-yet-officials-warn/?utm_source=em-morning-briefHawaii• USGS Kilauea volcano updates, current eruption status and forecast: https://www.usgs.gov/volcanoes/kilauea/volcano-updates?utm_source=em-morning-briefIllinois• KSDK, St. Louis meteorologists confirm three tornado touchdowns in Illinois: https://www.ksdk.com/article/weather/weather-impact/st-louis-tornadoes-confirmed-touchdown-monday-storms-missouri-april-28-2026/63-3e1403e0-0127-41f9-a6fd-33e6154bf3c9?utm_source=em-morning-briefKentucky• 14News, EF-0 tornado confirmed in Ohio County, Kentucky: https://www.14news.com/2026/04/29/ef-0-tornado-confirmed-by-weather-experts-ohio-county/?utm_source=em-morning-brief• NWS Louisville, another severe weather threat through tonight: https://www.weather.gov/lmk/Severe_Weather_Expected_Tonight?utm_source=em-morning-briefMichigan• State of Michigan, Executive Order 2026-10, declaration of state of emergency: https://www.michigan.gov/whitmer/news/state-orders-and-directives/2026/04/28/executive-order-no-2026-10-declaration-of-state-of-emergency?utm_source=em-morning-brief• State of Michigan press release, Whitmer expands previous state of emergency declaration: https://www.michigan.gov/whitmer/news/press-releases/2026/04/28/whitmer-further-expands-previous-state-of-emergency-declaration?utm_source=em-morning-briefMississippi• WTOK, City of Meridian issues a boil water notice (April 29, 2026): https://www.wtok.com/2026/04/29/city-meridian-issues-boil-water-notice/?utm_source=em-morning-brief• WDAM, Boil-water notice lifted in Taylorsville (April 29, 2026): https://www.wdam.com/2026/04/29/boil-water-notice-lifted-taylorsville/?utm_source=em-morning-brief• Action News 5, Severe storms pummel Mid-South including unconfirmed tornado: https://www.actionnews5.com/2026/04/29/severe-storms-pummel-mid-south-including-least-1-unconfirmed-tornado/?utm_source=em-morning-briefMissouri• Missourinet, Storms damage Central Missouri state prisons: https://www.missourinet.com/2026/04/27/storms-cause-damage-at-state-prisons-and-across-central-missouri/?utm_source=em-morning-brief• Springfield Citizen, Hail storm causes damage and 10,000 power outages in Springfield: https://sgfcitizen.org/weather/springfield-power-outages-hail-storm/?utm_source=em-morning-briefNevada• Fox Weather, Magnitude 4.4 latest in series of earthquakes to hit Nevada: https://www.foxweather.com/weather-news/magnitude-4-7-earthquake-shakes-las-vegas?utm_source=em-morning-briefNew Mexico• The Watchers, Critical fire weather conditions forecast across eastern New Mexico and western Texas: https://watchers.news/2026/04/28/critical-fire-weather-conditions-forecast-across-eastern-new-mexico-and-western-texas/?utm_source=em-morning-briefOklahoma• AccuWeather, EF4 tornado devastates Enid, Oklahoma: https://www.accuweather.com/en/severe-weather/ef4-tornado-devastates-enid-oklahoma-amid-thursdays-severe-weather/1885149?utm_source=em-morning-brief• News9, Cleanup efforts continue following EF-4 tornado in Enid: https://www.news9.com/oklahoma-city-news/cleanup-efforts-continue-following-ef-4-tornado-in-enid-dozens-of-volunteer-helping?utm_source=em-morning-briefPennsylvania• WCCS Radio, Tornado warning for Indiana County cancelled (April 29, 2026): https://www.wccsradio.com/2026/04/29/tornado-warning-for-indiana-county-cancelled/?utm_source=em-morning-briefTennessee• WSMV, EF1 tornado leaves swirl markings in field north of Nashville: https://www.wsmv.com/2026/04/29/ef1-tornado-leaves-swirl-markings-field-north-nashville-during-early-week-severe-storms/?utm_source=em-morning-brief• WSMV, Damaging microburst confirmed in Lawrence County: https://www.wsmv.com/2026/04/29/damaging-microburst-confirmed-lawrence-county-storms-early-tuesday/?utm_source=em-morning-briefTexas• Office of the Texas Governor, Governor Abbott issues disaster declaration for North Texas storms: https://gov.texas.gov/news/post/governor-abbott-issues-disaster-declaration-for-north-texas-storms?utm_source=em-morning-brief• TDEM press release, Governor Abbott issues disaster declaration for North Texas storms: https://www.tdem.texas.gov/press-release/4-28-26?utm_source=em-morning-brief• CNN, Tornado devastates Mineral Wells, Texas, on sixth straight day of severe storms: https://www.cnn.com/2026/04/28/weather/severe-storm-outbreak-tornadoes-hail-south-climate?utm_source=em-morning-briefNorthern Mariana Islands• FEMA disaster page (DR-4910), Commonwealth of the Northern Mariana Islands, Super Typhoon Sinlaku: https://www.fema.gov/disaster/4910?utm_source=em-morning-brief• Stars and Stripes, Many in Northern Marianas still without power nearly two weeks after super typhoon: https://www.stripes.com/theaters/asia_pacific/2026-04-27/super-typhoon-sinlaku-recovery-21499079.html?utm_source=em-morning-brief This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit emnetwork.substack.com/subscribe

This week, we interviewed Rod Mathews. Rod is the CEO of TeamDynamix and a member of the board of directors. Most recently, he was President and CEO at Axcient, a business continuity and disaster recovery software company, where he focused on innovation and market acceleration, leading to its acquisition by ConnectWise late last year. During his tenure, Axcient's growth rate tripled, driven by the expansion of the market-leading x360 platform focused on the MSP market.  As a 34-year tech industry veteran, he has held leadership positions across R&D, marketing, corporate development, and general management with Barracuda Networks, EMC, Data Domain, and NetApp.  Rod is also executive chair of the board at Spin.AI, a SaaS security company with a mission to secure SaaS data against ransomware attacks, insider threats, data loss, data leaks, and non-compliance.

Aharon Chernin, founder and CEO of Rewst Aharon Chernin has been building technology specifically for MSPs for more than twenty-five years – including founding Perch Security, which ConnectWise acquired in 2020. His next venture was Rewst, a workflow automation platform purpose-built for managed service providers, now serving over 1,500 MSPs. The founding insight: automation was the foundational promise of managed services, and the tools had never lived up to it. In this conversation, Chernin draws the distinction that frames everything else: there’s a difference between an MSP that does automation and an automated MSP. One is a project. The other is a culture. Success, he argues, is one hundred percent cultural – the person who writes the cheque and the engineer who builds the workflows both have to want it, or it stalls every time. We dig into where AI fits in the MSP operational stack, and why treating AI and automation as interchangeable leads to bad decisions. The Chernin framing: AI thinks, automation acts. Without a connected execution layer like Rewst’s RoboRewsty AI Workflow Builder, AI can only advise. We also get into the governance model – approval gates, trust levels, and the balance between cyber risk and business risk – and the MCP Server architecture enabling genuinely agent-driven MSP operations. Chernin shares numbers from three Canadian MSPs on the platform – Resolved IT, Ideological Systems, and Yardstick – and walks through how to calculate the real economics of automation investment beyond simple time savings. He closes with a practical roadmap for any MSP owner who wants to get serious in the next six months: get out of firefighting mode, find your automation champion, start small, and do not wait for perfection. Read Full Transcript Robert Dutt: Hello and welcome to In The Channel from ChannelBuzz.ca, bringing news and information to the Canadian IT channel community for the last sixteen years. I’m Robert Dutt, editor of ChannelBuzz.ca, and your host for the show. If you’ve been following the conversation around AI and MSPs over the last year or two, you’ve probably noticed that a lot of it is pretty fuzzy. AI is going to transform your business. AI is the future of service delivery. AI this, AI that – but not a lot of specificity about what it actually means for the way an MSP runs its operations day to day. My guest today has been building technology specifically for MSPs for more than twenty-five years. He founded Perch Security, which was acquired by ConnectWise back in 2020, and then turned around and founded Rewst, a workflow automation platform built from the ground up for managed service providers. Rewst now has over 1,500 MSPs on the platform, which means he has a pretty clear view of where the channel actually stands on automation – not where vendors wish it stood, but where it actually is. We talk about the difference between an MSP that does automation and an automated MSP, and why that distinction matters more than any specific tool. We get into why AI and automation are not the same thing, and why confusing them leads MSPs to make bad decisions. And we look at what the operational stack of an MSP actually starts to look like as AI moves from advising on workflows to generating and executing them. Aharon Chernin is the founder and CEO of Rewst, and he’s been thinking about this a lot longer than most. Let’s get right into it. My chat with Aharon Chernin. Aharon, thanks for taking the time. I appreciate it. Aharon Chernin: Nice being here. Robert Dutt: Rewst isn’t your first time building specifically for the MSP market. You come out of Perch Security, acquired by ConnectWise. What did your time inside ConnectWise’s world teach you, and was Rewst a direct response to something specific you saw from there, or from the community there? Aharon Chernin: I was actually only at ConnectWise a couple of months. Really, the Rewst idea came from working with MSPs for years while I was doing Perch. I was learning more and more about how MSPs operated. I saw the tools they were using, the problems they were having. And, mind you, this is the era circa 2017-18, and they’re using tools called PSAs – professional services automation – that didn’t really automate anything. It had me scratching my head: what’s going on here? But then I just continued moving forward because I had security stuff going on. And then there were RMM tools called Automate, and I was trying to figure out what these things actually automated. It was just endpoint stuff, right? But there’s so much more than just an endpoint. And then I saw a bunch of single-point solutions – software products out there doing a single automation, not even calling it an automation, just calling it a software product. So once I had the opportunity after Perch, I went and started investigating what were these quirks in the market I was seeing, because automation is much, much bigger than what the market actually thought it was. Robert Dutt: Well, and it’s for so long been one of the key premises of managed services – the idea of automate everything you can towards success. So it’s interesting to hear those observations. You’ve got the platform now with 1,500 or more MSPs on it – you probably have a better view of the real state of automation adoption in the channel than almost anyone out there. How would you honestly characterize it today? Is this a story of meaningful progress from the scenario you saw back in your Perch days, or is it still pretty early for many MSPs? Aharon Chernin: It’s still the beginning. We only have 1,500 MSPs. And how many MSPs are there – depending on who you talk to, 60, 80,000. We only have 1,500 of them. So in my mind, these are all early adopters in automation. But when it comes to what adoption actually looks like in an MSP that successfully automates, it’s cultural – 100%. If you look at cybersecurity – Perch was a cybersecurity company – you’d be looking for the correct size MSP that focused on security to resell through. But when it comes to automation, every size MSP needs to automate – small and big. And we’re actually seeing that. We see really, really small MSPs automate and really, really big MSPs automate. And we’ve also seen both those sizes fail. The number one reason they succeed is culture. The buyer – the buyer could be the CEO of the MSP, or a director of managed services, whoever can write a cheque – that person has to want to automate. And the engineer who’s actually going to do the automation, they have to want to do it too. If the buyer wants to automate but the engineer doesn’t, it’s not going to work. If the engineer wants to automate but the buyer doesn’t, it’s not going to work. And that cultural thing extends further than just the want. The CEO of the MSP should be running around saying, “I want to be an automated MSP,” and excited about it. If they’re not excited about it, they’re going to be a part-time automation MSP. The way I like to say it is: you’re either an automated MSP, or you’re an MSP that does automation. Robert Dutt: What do you find helps flip the switch from one to the other? What is it that gets those teams that are either misaligned or not aligned at all to get things lined up and moving in the right direction? Aharon Chernin: It’s really an open line of communication between the buyer and the person implementing. Because if the buyer has an automation idea – just one, a single simple basic thing that would save the company time or help improve service delivery reliability – and that engineer performs that small automation, and they talk to each other, and the engineer says, “Yes, it’s running. Yes, it runs fifty times a day. We’ve saved eight hours today running this automation” – and that actually gets back to the person who writes the cheque – there is alignment. The tide has turned. Suddenly the MSP says, “How do I dedicate more people to helping automate this business?” It’s a matter of getting that first win and getting it in place. Robert Dutt: There’s a lot of talk, obviously, about AI. And Canadian MSPs are being sold a lot of things that blur the line between AI and automation. You’ve talked about that distinction – the idea that AI thinks and automation acts. Can you expand on that? Because I think getting that framing right can help change how MSPs make decisions and think about how they’re structuring things internally. Aharon Chernin: AI can’t touch anything by itself. This goes back to: AI thinks, automation does. Take ChatGPT, for example. ChatGPT is not an AI. ChatGPT is a tool on top of AI. The AI is GPT. The tool is Chat. So just having AI gives you a lot of answers to a lot of questions, but nothing gets done. You need the tool on top of the AI. I can’t think of an easier way to define it than that. There are an infinite number of possibilities of what you can do with a tool that leverages AI. Robert Dutt: So you guys have RoboRewsty now. You’re moving from AI that guides building workflows to AI that generates those workflows. That sounds incremental, but to your point on thinking versus doing, I suspect it’s more significant than that. What actually changes for an MSP team when anyone in the org can describe a workflow in language that’s natural to them and have it built for them, rather than having to go back to that one person who knows how to build out the automation? Aharon Chernin: AI is easier to understand than even that. We need to think of it as just another employee. Now, depending on how much the business trusts that employee is how much governance we’re going to put around that employee. If there is one hundred percent trust, it gets free will and can run freely. If there is zero to ten percent trust, every step of the way needs to be gated by a person. But there’s a balance. One of the funny things about cybersecurity is everyone looks at the cyber risk side of the equation, but no one looks at the business risk. The business risk of having zero trust in your AI means all the other MSPs can surpass you. You need to balance business risk and cyber risk. It’s never one hundred percent cyber risk, or your business won’t move forward. How do you put people in the middle? When you tell the AI to build the automation, you require approval gates along the way. And the AI will build in those approval gates for people to get in the way of automation and approve or deny things. That solves the problem of the AI acting fully independently. Robert Dutt: You’ve announced an MCP server that lets external AI agents trigger Rewst automations directly. That feels like a pretty big architectural shift toward that AI-doing side of things – toward operations that are genuinely agent-driven rather than just automated. What does that look like in practice today, and where do you see that going over the next couple of years? Aharon Chernin: I see three main agent use cases. But if we sit back and think, “Where does this MCP server fit in?” – in my world, in my vision, when I create products, I have to try to predict the future. Because it takes time. If I create a product for what’s needed right now, by the time it gets done and goes to market, it’s already a bad idea. In the future, people will be interacting with agents, not with the user interface of any product – a PSA, an RMM, maybe even an operating system. When you think that way, without a capable MCP server in front of your product, you’re forcing people to always log into it. If everyone is in Claude Code all day long and you’re the one product they have to pop out of Claude Code for, that’s not good. I don’t want to be there. And for folks who want more approval controls in an automation process – what’s cool about using Claude Code to interact with the Rewst platform is you can put requirements in your Claude Code, in your AGENTS.md file, for example, to be enforced however you want them enforced on your side. Which is pretty neat, in my opinion. As far as the three major use cases for agents: I immediately get brain-fried when someone asks what an agent-driven MSP of the future looks like, because I think – what agent are they talking about? I really see three specific, distinct agent implementations that an MSP could ever have. One is an agent that they build for their customers that just does customer-centric business things. That’s not something the MSP would run internally – that’s something they want their customer running. Then they may want an agent that the customer uses to interact with the MSP – “Hey, I need to add a new user,” for example. That may launch Rewst automations, because it’s just an agent – it’s just AI, it can’t go do those things on its own. And then the third type is the agent that an engineer uses at the MSP itself, because that agent is going to have more privileged access and communicate in a much more technical way than you’d want to present to a client. Robert Dutt: How do you see those rolling out in terms of timeline? My first assumption would be that you build the internal side first – get the side the engineers are working with up and running, learn from that, then start building out the customer-facing side, and finally toward the end-user type stuff. Aharon Chernin: You always eat your own dog food first. It’s got to be useful for you. If you’re just doing it to say you’re doing it, you won’t be able to sustain it. It won’t scale. I would have your help desk and your engineers doing simple things first. I love the owner-operators that have grand visions of their AI-automated futures, because those are the ones who are going to succeed. The one downfall they may have is they won’t settle for anything other than that grand vision – they work on the most complex thing first. Or they get a ton of small wins under their belt and never go for the big win because the big vision feels too far away. So: keep it small initially. Eat your own dog food. Get really good at it. Then move bigger successfully internally. Then maybe the next step is the agent the customer uses to interact with your business – do the same thing, start small, then go big. The agent the MSP builds for their customers’ businesses is the toughest. Not because it’s technically challenging – it’s tough because the MSP has to go learn how that customer’s business actually operates. And if you want your agent to provide value, you’re going to have to do that work. Robert Dutt: That’s a chance to really test the “trusted advisor” theory out and get real about it. Aharon Chernin: Exactly. Robert Dutt: Let’s talk about the economics of this. Especially as a Canadian MSP – we’ve got a smaller talent pool, cross-border salary competition, the Canadian dollar. The headcount argument for automation is particularly acute here. Where does break-even actually land? What does an MSP need to have in place before this really starts to visibly move the margin needle? Aharon Chernin: You start with understanding the economics of automation. The most basic is: how much time will you save? And even the definition of saving time can be less obvious than you’d think, because saving time might mean “I don’t do this work today” – so how do you calculate that? Well, one of those savings is: will it reduce churn? How much time does it take to go get a new client? Then you realize, oh, there is a time savings there. Or it may not save time, but it improves service delivery reliability. How much time do you spend each month on ticket re-dos because they were done wrong the first time? And some of these savings are security-related. If you can take away privileged access from your lowest-level help desk because automation handles those tasks instead, how much does an incident cost you each month? The next big thing is understanding the cost to build an automation. We’ve dramatically reduced that over the past three months through RoboRewsty – you just describe an automation and it goes and builds it for you, then runs, tests, and fixes it. It could save you roughly ninety percent of the build time. Just like writing code with Claude Code saves you a lot of time building software. So: you’ve got an automation idea. It costs you four hours to build and saves you 400 hours a month – you break even really, really quickly. You have an automation that takes four hours to build but only saves you thirty minutes a month – do you still build it? Yes. Because automation is not a one-month profit thing. It builds off itself each and every month. And that’s when you start to realize: maybe I do start small, because the big grandiose ideas might save you ten hours a month but take you a hundred hours to build. We’ve got a couple of Canadian partners who’ve had great success and are okay with me naming them. Resolved IT: last month they did 420,000 tasks and saved fifty-nine hours – 1,800 endpoints. Ideological Systems: 28,000 tasks, forty-five hours saved – 750 endpoints. And Yardstick: 744,000 tasks, 327 hours saved – 6,500 endpoints. Just some numbers for you. Robert Dutt: That’s certainly some solid data. You’ve talked about where you’re at now with RoboRewsty. Can you share a little about where you see things going in the short term – in terms of the direction of the technology and how you’re automating processes? Aharon Chernin: I feel like I’m more of a future predictor than a startup founder. AI is both scary and exciting at the same time. It’s a huge opportunity for everybody – for MSPs, for vendors that serve MSPs. But it’s also super scary because it’s a disruptor. It could disrupt MSPs, the vendors that serve them, and their customers’ businesses. You have to take risks in how you predict what’s coming. But I really do think the user interface for people is going away, and that the primary user of all products will be AI. That’s where the world is going. Think about that – how does that change how an MSP operates? Look at the tool stack MSPs use today. Is your PSA built for people, or is it built for AI? It’s going to be interesting. Never a dull moment in this industry. Robert Dutt: Last one for me. If I’m an MSP listening to this and being honest with myself about where I’m at in my automation and AI journey – what’s the one thing that most of them should be doing in the next six months that most of them aren’t? Aharon Chernin: Starting at a really high level: you’re a business owner. I’m a business owner. I understand how hard it is to get out of firefighting mode. It’s hard to see thirty days out. There’s so much going on – happy people that want to talk to you, unhappy people pulling you aside. You have to spend some time thinking beyond thirty days. You can’t ignore what’s coming with AI and automation, because there is going to be an MSP that doesn’t ignore it. The next level: come up with an automation idea. As the owner of the MSP, that’s the most valuable automation idea that will ever get identified, because it’s coming straight from the business – not from a random engineer with a random problem. That engineer can go automate something and make their job better, but you may never know about it and it may never impact the business. Come up with an automation idea. If you find that easy, come up with more. Having the ideas is half the battle – not even having a product. Just start writing them down. Next: identify someone in your organization who will become the automation champion. As fast as tech is moving, it may not have to be a super technical person, because they’ll be able to talk to an agent to make the automation happen. But if it were me, I would still pick who I think can automate the best. Go to your team and say, “Who wants to automate?” and pick the hand-raiser. That’ll also help with alignment. Once all that’s done, you’re finally ready to look at automation solutions. Learn everything you can – we have Cluck U, our certification program, get certified in automation. Then build that simple automation as quickly as possible and get it into production. Do not wait for perfection. If you’ve got a ten-step process that takes a hundred minutes, and you only automate nine steps, you’re still saving ninety minutes. Why wait for the last step to get that win? And then we’ve got a conference called Flow – an automation-focused conference for MSPs. The coolest thing about it is that everyone there is an MSP that wants to become an automated MSP, not just one that wants to do some automation. This is our third year. First year we had about 120 people, second year over 300, and this year I think we’ll have 500. It’s in Nashville, June 23rd. Check it out at mspflow.events. Was I allowed to plug that? Robert Dutt: I think you’re good. Aharon Chernin: Sounds good. Robert Dutt: Aharon, I appreciate you taking the time and giving us a view of where automation’s at and where it could be going. Thank you. Aharon Chernin: Thanks – it was nice chatting. Robert Dutt: There you have it – Aharon Chernin from Rewst. I’d like to thank Aharon for his time today, and thank you for listening. A couple of things I’m still thinking about from this conversation. The framing that stuck with me most is the distinction between an MSP that does automation and an automated MSP. It sounds like a subtle difference, but Aharon’s point is that one is a project and the other is a culture – and only one of them actually compounds over time. If automation is something your team does when they get around to it, rather than something that’s baked into how the business operates, you’re probably not going to get the return you think you are. The other thing worth sitting with is the governance question. As AI moves from helping you build workflows to actually generating and running them, the trust model has to evolve with it. The new employee analogy Aharon used – starting with limited access, expanding trust as it earns it – is a practical framework for MSPs who are trying to figure out how much autonomy to give AI in their stack right now. And for any Canadian MSPs listening – the data points Aharon shared from Resolved IT, from Yardstick, from Ideological Systems – those are real Canadian shops with real numbers. The economics of automation are compelling anywhere, but they’re particularly compelling here, given our labour market realities. If this episode was useful to you, the best thing you can do is subscribe to or follow the ChannelBuzz.ca podcast wherever you get your podcasts. We’re on Apple Podcasts, Spotify, YouTube, and most major directories. A rating or review goes a long way and is always appreciated. Until next time, I’m Robert Dutt for ChannelBuzz.ca, and I’ll see you in the channel.

Guests Include: U.S. Concealed Carry Association's Rob Chadwick, ConnectWise's Arnie Bellini, Author John Menna, McLaughlin & Associates' John McLaughlin

NinjaOne's reported growth and positioning within the MSP software landscape presents a notable development for service providers evaluating vendor ecosystems. According to statements reviewed by Ryan Morris and Dave Sobel, NinjaOne claims an annual recurring revenue (ARR) exceeding $500 million, a valuation above $5 billion, and a customer base of more than 35,000. This self-reported data, while not independently verified due to NinjaOne's private ownership, places the company within the top tier of platform providers for endpoint management, alongside ConnectWise and Kaseya. The expansion and platform focus suggest material choices ahead for MSPs considering stack consolidation, endpoint management, and integration requirements. Supporting analysis from Dave highlights trends in the categorization of platform players, noting shifts among vendors such as Enable, which is repositioning from the MSP infrastructure platform to the security domain. The discussion raises a technical consideration: the evolution from API-driven integration toward emerging orchestration standards such as MCP servers, though details from vendors remain limited. MSPs are advised to understand tier distinctions among platform providers and carefully assess how these shifts may affect integration, security posture, and operational alignment. Adjacent topics explored by the speakers include the risk and tradeoffs involved in vendor onboarding, M&A (mergers and acquisitions) processes, and the relevance of business continuity strategies. Ryan Morris and Dave Sobel critique extended, six-month vendor evaluation pipelines as potentially eroding competitive positioning in a landscape characterized by rapidly evolving technologies, especially AI-driven tools. Additionally, the episode revisits the skill set of the IT generalist, acknowledging that while specialist expertise remains essential in domains such as security, contemporary AI adoption demands generalist capabilities for validation, interpretation, and curation of technology outputs. The podcast asserts several operational takeaways for MSPs and IT leaders. Prioritizing process documentation and standardization enables scalability and business value beyond the presence of individual owners, as financial professionals weigh factors such as repeatability and owner-independence in valuation. Businesses should balance rigorous stack control with responsive, customer-centric experimentation, managing the pace of change in vendor portfolios and technologies. In M&A scenarios, the speakers caution against overly formulaic approaches, emphasizing contextual evaluation of fit and motivation to mitigate post-transaction dissatisfaction. Collectively, these themes stress the need for ongoing adaptation, systematized governance, and objective risk management in MSP operations. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The Huntress 2026 Cyber Threat Report found a 277% year-over-year surge in the abuse of RMM tools, which now account for roughly a quarter of all observed incidents. The ConnectWise 2026 MSP Threat Report frames 2025 as the year of “the abuse of trust,” with attackers increasingly exploiting valid credentials, misconfigured remote access, and trusted software updates rather than relying on novel exploits. For MSPs, the implication is uncomfortable: the tools you use to manage and protect your clients are increasingly being turned against you and them. Tony Anscombe, Chief Security Evangelist at ESET, returns to the podcast to dig into how these attacks actually work – from daisy-chaining multiple CVEs for entry, escalation, and persistence, to ClickFix-style social engineering where users are tricked into pasting malicious PowerShell commands through fake browser prompts. The conversation also gets into why attackers are going after MSP toolchains specifically, the patching dilemma MSPs face when every hour of delay is an hour of exposure, and why groups like Akira are now targeting backup infrastructure first to neutralize the recovery path before encrypting. On the business side, Tony is candid about what a breach through your own tools means for trust, reputation, and survival – and offers practical starting points: audit your environment, clean up stale credentials, patch on cadence, and run tabletop exercises with your customers, not just internally. He also introduces the concept of cyber warranties as a potential competitive differentiator for MSPs looking to stand out on RFPs. This is the second in an ongoing series of conversations with Tony. The first, covering the cybersecurity trends MSPs can’t ignore in 2026, is also available. Read Full Transcript TRANSCRIPT TO COME

Peter Kujawa, executive vice president and GM of Service Leadership and IT Nation at ConnectWise Labor is roughly 75% of a managed service provider’s cost of goods, which makes compensation strategy one of the biggest levers in the business. In this episode of In The Channel, Robert Dutt sits down with Peter Kujawa, EVP and GM of Service Leadership and IT Nation at ConnectWise, to dig into the findings of the 2026 Annual IT Solution Provider Compensation Report. The conversation starts with the Canadian data, which shows that solution providers in this market are planning the lowest pay increases of any region surveyed – just 7% of employees are seeing raises above 6%, and 42% are getting 3% or less. Kujawa attributes that to macro-economic softness, pullbacks in hiring by large tech firms, and the return-to-office trend reducing the remote competition for talent that was driving up wages in 2021 and 2022. From there, the discussion turns to what separates top-quartile firms from the rest. Best-in-class MSPs pay their service teams roughly $10,000 less on average, but the reason isn’t underpayment – it’s a staffing model built on a higher ratio of Level 1 technicians, made possible by unified tech stacks and narrower customer profiles. Those same firms use three times as much incentive-based compensation as bottom-quartile operators, yet industry-wide adoption of incentive pay has barely moved despite years of data supporting it. The episode also covers early data on AI and automation in the service desk, where digital workers are starting to show up in Level 1 and Level 2 roles, and a look at sales and marketing investment benchmarks – including why the most profitable firms are adding lead generation roles instead of sales headcount. The full report is available from Service Leadership for $2,000 USD, or free for MSPs who contribute their data during the annual survey period. Read Full Transcript Robert Dutt: Hello and welcome to In The Channel from ChannelBuzz.ca, bringing news and information to the Canadian IT channel community for the last 16 years. I’m Robert Dutt, editor of ChannelBuzz.ca and your host for the show. If you run an MSP, labor is your single biggest cost – roughly 75 cents of every dollar you bring in. So knowing what to pay, who to pay more, and where you might be over or under investing in your people isn’t just an HR exercise, it’s a profitability question. Service Leadership, part of ConnectWise, has been benchmarking compensation across the IT solution provider space for years, and they’ve just released their 2026 annual report. What makes this year’s data especially interesting for our audience is that it includes dedicated Canadian data, and the Canadian picture looks quite different than the rest of the market. My guest today is Peter Kujawa, Executive Vice President and General Manager of Service Leadership and IT Nation at ConnectWise. Peter is a former MSP operator himself, and he brings a practitioner’s eye to the data that I think you’ll find really useful. Let’s get right into it, my chat with Peter Kujawa. Robert Dutt: Peter, thanks for joining us. Appreciate it. Peter Kujawa: Yeah, happy to be here. Thanks for having me on. Robert Dutt: I guess the name of the report kind of says what it does on the tin, but for listeners who aren’t familiar with the Service Leadership compensation report, can you kind of give us the 60-second version of what it is, how long it’s been running, and why you guys choose to run it? Peter Kujawa: The compensation report has run – I think this is our seventh or eighth edition of it – but what’s significant is we’ve been running it as an annual report for the last four years. The reason that we’ve made it an annual report is because when we hadn’t run the report for seven years – Service Leadership last had run it in 2015 – in 2021, wage inflation was running so high and causing so many challenges for MSPs that we were getting a lot of questions about what I should be paying my people, what are increases looking like, I’m getting requests for 10, 12, 14% increases, is this in line with the market. And we didn’t have the data. And we’re data people – we like to be able to not talk in theoretical, but talk in data. And so we decided to dust off the older methodology and we ran the report in 2022. It was so successful that we decided to make it an annual report. And so every year in October and November, we open up our portal and MSPs from all over the world enter their data into the system. Anybody who enters their data gets a free copy of the report. We publish it, and anybody else can still buy a copy of the report for $2,000 US. But the value of it’s incredible. What we’re able to do with the report that nobody else can is, because we measure profitability of the industry worldwide, we’re able to correlate what companies – what MSPs – are paying their people, and profitability. So in other words, you’ll see in the report entire sections of analysis saying, what is it that the top quartile most profitable companies are doing differently in terms of paying their people than the bottom quartile? So that provides a lot of really useful guidance. But really the meat of it is when you go into the actual tables. We have over 60 positions that we collect compensation data on from MSPs. And you can see, based on experience level, what MSPs are paying their people for these positions. One of our objectives going in was to be able to provide a report that only shows data from the industry. All of our data is industry-specific data. And why that’s important is, while a hospital system or an enterprise company or others may have level one help desk positions, or they might have project engineers or other positions that sound like MSP positions, in reality, the jobs of those positions are different than they are at MSPs. It’s really hard when you go out and you do a market-based compensation study to really understand, as an MSP, what I should be paying my people versus what enterprise pays for similar positions. So our data is industry-specific. We collect it every year. It’s really recent. We carve it up by region and do different things to give value to MSPs all over the world. Robert Dutt: You’ve said in the past that we’re in the golden age of running an MSP. The compensation data from this year’s report – does it back that up? Does it complicate things? Basically, what’s the headline here in terms of the compensation trend? Peter Kujawa: I would say both. And so first of all, yes, I said that – including last week at London from the main stage keynote. The last six years have been the best profitability years ever for the industry. Best in class has done better than ever. Bottom quartile has lost less money than ever. Still in many cases losing money, but that’s a different discussion. However, MSPs’ largest source of cost is what they pay their people. Delivering services is, by definition, a services-based business. So if I’m delivering managed services, I’m spending about 25% of my cost of goods on my tools. The other 75% or so is on my people. And MSP employees have historically had wage increases at about twice the rate of CPI. So the challenge for MSPs has been, I’m having to pay my people these increases, I’m seeing my cost of labor going up at twice the rate of inflation, I can only increase my customer’s cost by a certain degree. I probably can’t increase them year over year for too many years in a row at twice the rate of inflation. So I need to figure out how to be more efficient in my business. The good news for MSPs is that crazy wage inflation we saw back in ’21 and ’22 has mitigated in three of the four geos. The only exception is Europe. So it’s gotten better, but wage inflation is still a huge issue for MSPs. Since 2013, we measure the relationship between service revenue and the cost of your service team and wages. It’s one of our most important KPIs at Service Leadership. And we haven’t seen any improvement in that since 2013, despite the tools getting better, despite pricing increasing. MSPs have been stuck because wage inflation has been so hot. And so yes, the last six years have been the best time ever for MSPs. But MSPs have to fix this issue with labor costs. And so that’s what’s so exciting about AI and automation, the things that we’re doing at ConnectWise with zofiQ and our platform. These are things that give MSPs the opportunity to finally get ahead and really take a bite out of this labor cost issue. Robert Dutt: Let’s talk about Canada specifically. Your data shows that Canadian solution providers are planning the lowest pay increases of any region. I think it was only 7% of employees are getting raises north of 6%, 42% getting 3% or less. What’s behind that? Peter Kujawa: Well, I think there’s a bunch of things that are going on right now. Number one is, depending on the region, there’s some economic softness. And when there’s softness in the economy in general, that comes into the labor pool. So if other companies are not adding staff at the same rate, it takes some of the pressure off of MSPs in that area. So there’s definitely some of that going on. I think also just the overall tech economy, especially in North America – we’ve seen a lot of announcements about significant cuts from some of the larger tech companies. And that has a way of bleeding down into the MSP space. We saw the opposite in 2020 and ’21 and ’22, and that was all these companies are hiring and they’re adding remote labor all over. And all of a sudden, local MSPs are having to compete with some of the biggest tech companies in the world for their local talent because of remote work. Well, many of those – A, many of those companies have been cutting a lot of jobs and it’s been very publicized over the past year. B, remote work has changed as well. We have analysis in there showing that most companies in the MSP space have returned to the office. And that’s definitely something that I think you’ve seen in big tech as well. So those two things have taken some of the pressure off and improved those really high-level increases. And I think that’s what we’ve seen in three of our four markets. Robert Dutt: In terms of the Canadian numbers, I’m curious if you see them making – is it a company choice? Is it discipline, or is it a sign that Canadian MSPs are under more financial pressure than their peers in other markets? Peter Kujawa: I’d have to run and take a look at the data on the profitability of the Canadian market compared to some of the other markets right now. I’m not aware of any of that being an issue right now, but I could certainly take a look at that, Robert, and get back to you. I think it’s more a case of the North America trends on labor. It’s probably indicative of a general softness in the Canadian economy and just some concerns that companies have. When companies are concerned about what’s going on today in the macro economy in their region, they pull back on hiring. Well, when they pull back on hiring, that creates less opportunities for the employees of the MSP to jump ship and go somewhere else and get a big bump. Second of all, I think MSPs are known as great training grounds for tech employees, and the tech employees know this. Recruiters know this. MSPs are really fertile recruiting ground. Well, it’s a lot more tempting to take that offer when it looks like the economy is red hot and everybody’s growing. When it looks like, you know, things are pretty good for me at the MSP – I like what I do, and yes, I could go to this other company, but we’re seeing all these cuts at all these other companies, and my MSP is doing fine and growing and has been good to me – maybe I’m happy with a normal increase and maybe that huge increase I was looking at getting is not as tempting and I’m maybe not going to leverage it. So I think all these things tie together when you’re looking at what goes on in wage inflation in our industry. Robert Dutt: So from the other point of view, it kind of cuts the chances of it becoming a retention issue. As you say, there’s those kinds of loyalty factors built in. One of the more counterintuitive findings is that best-in-class MSPs – the top quarter in profitability – gave roughly three times fewer large pay increases than bottom quartile firms. What are they doing differently? Peter Kujawa: Yeah, it’s an interesting question. There’s a few factors that tie in. There’s some other linkage to what the best in class is doing differently, but I think specifically in terms of increases, there’s a couple things that play out. Number one is the best in class have built a business that is much easier to recruit somebody into and get that person to be productive faster. And what I mean by that is best-in-class companies are servicing a more narrow target customer profile. They are much more likely to have their customer base on a singular tech stack. So they’re not servicing multiple vendors per each thing that they offer. So let’s say, for example, firewall support – just a basic example. A best-in-class company is much more likely to have unified on a single vendor and have 100% of their managed service clients on that vendor’s products. As a result, it’s a lot easier for a new tech coming in to understand their offerings, to become productive faster. So they hire more level one techs and they’re able to recruit those techs and get them up and running easier. That gives them an advantage when there’s techs that are thinking of leaving and they need to match a higher increase in order to keep that tech. If you know that we’re going to lose a certain number of techs a year and we’re going to need to replace a certain number of techs a year and it’s fine, we’ll deal with it, we have the engine that’s capable of sustaining and bringing them in – well, then I’m more likely, when a tech comes in on a Friday and says, “Hey, I’ve got this offer. I like it here, but it’s a 20% increase or 15% increase. If you match it, I’ll stay” – well, if I’m a bottom quartile shop and I have all this additional complexity in my organization, it’s harder for me to get somebody up and running. I’m probably more likely to match that or come close to it if they stay. If I’m a best-in-class shop, I’m much more likely to say, “Hey, you’ve been great here. Glad we hired you two years ago or whenever. Keep in touch. And if you know anybody who’d be a good fit, send them our way.” So that’s one factor. Number two is, when you work at a bottom quartile MSP, it’s not a lot of fun. Process is not as good. As I said, you don’t have as much of a unified tech stack and target customer profile. As a result, the quality of your service delivery tends to suffer. You’re probably getting yelled at more often by your customers. It’s just, in general, not as enjoyable of a place to be. Best-in-class shops grow the fastest. When you’re working at a best-in-class MSP that’s growing at twice the rate of a bottom quartile MSP, that means there’s going to be more opportunity for you from a career perspective. Life is a lot more fun when you’re at a faster growing, more profitable firm. So those companies are able to be more discerning on the increases that they give. I think the other factor at play is the best-in-class MSPs tend to be much better at using data to make decisions. And that’s not just for what they pay their people – they use data and really understand what’s going on in their business, in their industry. They’re less likely to just throw around increases for the sake of increases, and they run their businesses in a tighter way. So I think there’s several things that tie into that. Robert Dutt: It sounds like the takeaway, the lesson, is not so much “pay less” as it is structure the organization more intentionally, more thoughtfully, and you’re able to – for all these reasons that you outline – keep people or better react when folks do want to move away for a much higher paycheck. Peter Kujawa: Yeah. Run your business at a higher operational maturity level, and you will get all sorts of other benefits from it, including this. One of the other slides that is in there that’s tied into what you just said is, we looked at on average, by category of employee, what is the best in class, median, and bottom quartile pay in each category. And one of the questions I get a lot from the report is, on average, the best in class pays their managed services team $10,000 a year less than the bottom quartile. It’s about $75,000 for bottom quartile, about $65,000 for best in class. So the question is, well, if I go work at a best-in-class MSP, am I being underpaid? Do I have to take a pay cut to go work at a best-in-class MSP, or are they just not fair with what they pay their people? The answer is, that’s not the way to look at that data. The best in class is able to pay less on average because, if you look at a managed service team, you have level one techs, level two techs, level threes. You also have service managers, you have vCIOs, project managers or project coordinators. So you have all these people that constitute the team, but the majority of the positions are your techs – level one, two, and three techs. Our data says that the best in class have a much higher percentage of level one techs. The bottom quartile have a much higher percentage of level two and three techs. So if I have two MSPs side by side, and they both have 10 techs in their tech team, but one of them has two level ones and the other eight are a mix of level twos and threes – well, those level twos and threes cost a lot more. So if I have another MSP that has 10 techs but six of them are level one techs and four of them are level two and three, those level one techs cost a lot less. If I add all those up and I divide by the number of employees I have, my average cost per tech is much lower if I have more level one techs than if I have more level two and three techs. So you can go to work at a best-in-class MSP and do well. In fact, they pay more incentive pay as a percentage on average. So if you’re really a rock star and you go in and do a great job at the business, you should actually be able to make as much or more money. Robert Dutt: You talked before about the 14% or so of gross margin benchmark for marketing spend. Are there similar concrete benchmarks in this report that an MSP owner could take back to their business this week and immediately act on in terms of improving profitability or improving the business? Peter Kujawa: Yes. There’s a number of them. I would say it would depend on the size or maturity of the MSP what they would act on or take back. But if nothing else, the first thing I would suggest is go into the actual data tables and see how your people compare and understand if – first of all, no MSP leader or owner ever hears from their people, “You know, I think we’re kind of overpaid. Why don’t we – we would like to see our pay reduced to the market,” right? There’s a constant pressure to do two things when you’re running an MSP. Number one is to pay more. Number two is to add more bodies. So I would go back first and foremost, look at the tables and say, here’s what I have for people, here’s their experience level, here’s where they’re at. How am I comparing to what I’m seeing in the market? That would be number one. Number two is I would, regardless of the size of the MSP, look at my incentive pay for both managers and staff positions. I would take a look at what percentage of total annual earnings are tied to incentive. The best in class on average ties about three times as much to incentive pay as the bottom quartile, for both staff and for managers. Well, how do they do that? There’s some best practices to incentive compensation. What you don’t want to do is go out tomorrow and just cut a percentage of pay out of your people’s base and shift it to incentive and say, “Hey, great news guys. Effective today, I just cut your pay by 10%, but now you get an incentive and you can actually earn a little bit more.” That will not go well. So there’s best practices for how to implement this. Start with your managers. Build the incentive, make sure you’ve got it right, you’re measuring it right. Then roll it out to your staff positions. What you’re incenting is really important. You want to make sure you’re tying it to the greatest degree of what they have control over. And you’re not just tying everything to the profitability of the business or sales growth. There are other things that people tend to have more influence over. So really understand incentive pay and how to leverage that as well. Depending on the size your MSP is, there’s also some really interesting information in there about some of the staffing composition. For example, we know that – you cited the 14% of gross margin should be invested in sales and marketing. That’s true. About 4% or so of that tends to go to marketing. About 10% of that tends to go to sales. But what’s interesting is, when we looked at staffing FTEs by role, the best in class are actually adding more lead gen people in marketing and the bottom quartile are adding more salespeople. So they’re both trying to grow their business. They’re both focused on new logo acquisition. But the best in class has learned that salespeople are expensive. They’re hard to find great ones. It takes a while to get them productive. When I have a good one, I’m much better off to invest some additional money in my marketing engine and use that marketing engine to drive more leads back to my salespeople and make sure that my salespeople are really doing what they’re best at all day. The bottom quartile tends to just add more sales bodies and hope that they can be more productive. So there are some differences in the report that get into some of those best practices. It’s part of the reason the ConnectWise partner program was designed the way that it was – to really help with lead gen and to help MSPs tackle some of those challenges. Because it’s really frustrating when you add salespeople and you’re spending a lot of money and you’re not seeing new sales come in. You want to make sure that they’re really productive. Robert Dutt: This year you’re tracking digital workers for the first time – AI agents, automation bots. How widespread is adoption right now amongst the firms in your data set? Are we talking about 5% experimenting, or is this something that’s pretty material in the results? Peter Kujawa: At this point, the data told us about what we expected, which is we’re really early on. Our goal this year was to collect a baseline number. And what we saw was that most MSPs as of last year did not yet have full-time digital workers, but where we did see them was in level one and level two tech roles, which – that’s where we’re seeing it in the industry in general. So that makes perfect sense to us. What we think we’ll see is, over the next couple of years, those numbers are going to start to ramp up pretty significantly. Robert Dutt: When you look at firms that are deploying digital workers and you look at their compensation data side by side, are they paying fewer people more, or are they just running leaner? Peter Kujawa: I think at this point, because of how early on they are, they’re just getting up and going. But where we’re starting to see the gains is you’re starting to see a little bit of a shift in the staffing model mix. Back to that firm that has 10 employees in their help desk – let’s say they’re best in class and they have six of those are level ones, three of them are level twos and they have one level three. What we’re starting to see is, as the report says, there’s about 23% or so turnover in your level ones. So as they are losing some of their level one techs, they’re not backfilling some of those positions at all or as quickly. As they’re building these efficiency gains into their help desk and starting to see some automation gains, we are starting to see some impact in profitability and in that staffing model. Again, we’re really in the early, early stages of this. We think it’ll start showing up significantly in the Service Leadership data by later this year, because our profitability data is always a quarter behind by definition. But anecdotally, some of the MSPs that we talk to are starting to see those gains, and they are starting to see that manifest with their level one staffing particularly. Robert Dutt: It’s going to be an interesting space to watch and see what that looks like as that trend line develops. If you’re a Canadian MSP owner, particularly a smaller MSP, and you could look at only two or three data points from this report to kind of pressure test your own comp strategy, what would you be looking at first? Peter Kujawa: I would look first at the data tables of the average by experience per position. So I would first start with all my most common positions. For most MSPs, those are going to be level one and maybe level two techs. And I’m going to look at by experience, what am I paying each of my people? So I’m going to use that. And then I’m going to go into my other positions through my organization. I’m going to use that to really pressure test – am I paying correctly? Number two is I would go in and look at my incentive pay. Do I have something tied to performance for every one of my people? If I do, am I doing this the right way? Have I set up the plans in a way that’s going to lead to better results for the business and for the employee when the employee does great? I mean, that’s one of the measures of an optimal incentive plan – when the employee overperforms and gets paid on an overperformance, everybody’s happy. If the employee is happy but the owner of the business is unhappy because the employee hit their overperformance, well, that’s bad. I’ve got a problem with my incentive. So I’m going to look at how I structured the incentive for everybody. Those would be number one and number two. Number three, I’m going to start looking at, depending on the size of MSP I am, what should my model be evolving into? I’m going to use this as part of my budgeting. So depending on the fiscal year timing, you might be early-stage fiscal year, you might be late-stage if you do a mid-year fiscal year. Regardless, I’m going to start looking at this data and start modeling it out to see how does this fit into my budget for next year. What should I be starting to plan on for changes I’m going to want to make in my compensation structure? Because you really want to get ahead of those and make sure that they fit into the overall business goals of what you’re trying to do. Robert Dutt: You mentioned near the top of the interview that wage inflation peaked in 2022. It’s been easing since. Is that a reason for MSPs to breathe easier, or is it masking something that they should be watching? Peter Kujawa: Yeah, it’s the opposite. In 2022, wage inflation was running upwards of 10% or more. We were seeing these crazy increases out in the market as a norm. But on the flip side, we were also seeing managed service organic revenue growth running at its peak – about 25%. And the reason it was so hot was a mix of a few things, but a significant contributing factor was price increases on managed service offerings. MSPs got much better at that time at understanding, I have a gun to my head from all this wage inflation – I better start doing some uncomfortable things with increasing pricing for my customer base. And they did. And we saw that in the data, which got the MSPs through it. They were able to maintain profitability, et cetera. So that was the good news. The bad news is that you can’t increase prices at that level indefinitely. And so yes, wage inflation is better, but again, we’re back to more of a normal increased cadence on pricing. And yet MSP wage inflation, even though it’s much, much better than 2022, still runs about twice the rate of CPI. MSPs cannot take their eye off the ball with this. It’s really important as we go forward that MSPs be focused on where can I drive efficiency gains in my business. Where do I have waste today? Forget AI and automation for a second. Are there employees that I’ve been carrying that are not producing, but I like them, and so I keep them around? I just haven’t been disciplined at making some tough decisions. If that’s the case, make those tough decisions first. Second is, every MSP out there needs to be focused on automation and AI. It’s not for luxury reasons. It’s for survival reasons. The industry is changing rapidly. Every MSP needs to be focused on how can I get more efficient with my cost of labor and how can I make sure that as I’m growing my business, I’m not growing my labor cost at an equivalent rate to the growth of my business. These things will ensure that not only will the MSP survive, but they should be able to improve their profitability. If they’re bottom quartile, get up to median. If they’re median, get up to best in class. And really be well positioned for the evolution of the industry over the next few years. So yes, it’s good news that wage inflation has improved. But it hasn’t taken the pressure off at all for MSPs to focus in on AI and automation. Robert Dutt: And my last question – what’s one thing that surprises you in this year’s data that you didn’t expect to find there? Peter Kujawa: That’s a great question, because nothing surprises me at this point ever looking at the data year in and year out. I think I continue to be really surprised by the bottom quartile and the median. We’ve been talking for years about incentive pay and tying your employees to performance. And yet we’re not seeing the needle move significantly in the bottom quartile and the median in that regard. I would have expected by now, with how many years we’ve been talking about this and publishing this data, that we would have seen some more significant improvements in tying employees’ pay to performance. But we’re not really seeing that significantly change. So again, if I’m a smaller, midsize MSP, or even a larger MSP, I’m going to use the report as an opportunity to go in and look at what we’re doing in that regard and make sure that we’re doing what we can to tie employee performance to their pay. Robert Dutt: It makes a lot of sense. I think that disconnect is a big neon sign pointing towards an opportunity to optimize. Peter, I appreciate your taking the time and walking us through so much of this data. There’s some real value in there for the MSP community. Peter Kujawa: Well, thanks for having me, Robert. Enjoyed the interview. Robert Dutt: There you have it – Peter Kujawa from ConnectWise and Service Leadership. I’d like to thank Peter for his time. He brought a lot of substance to this one. And thank you for listening. A few things I’m taking away from the conversation. First, that Canadian stat. We’ve got the lowest planned pay increases of any region in the report. Peter’s read on that is that it’s less about financial pressure and more about a macro environment that’s eased the competitive pressure on talent. Whether that’s a strategic advantage or a risk you’re not seeing yet is worth thinking about. Second, and this might be the most actionable piece – the best-in-class firms aren’t just paying less. They’re paying differently. More incentive-based comp, smarter staffing mix, investing in lead gen over sales headcount. That’s a playbook, not just a data point. And third, if you’re not using incentive pay yet, you’re in the majority, but that’s not necessarily where you want to be. We’ll have a link to the report in the show notes. If you’re enjoying the ChannelBuzz.ca podcast, do me a favor and follow or subscribe wherever you’re listening. We’re on Apple Podcasts, Spotify, YouTube, and most of the major directories. And if you’ve got a minute to leave a rating or a review, that goes a long way to helping other folks in the channel find the show. Until next time, I’m Robert Dutt for ChannelBuzz.ca, and I’ll see you in the channel.

Today is Monday, March 23, 2026. Welcome to In Case You Missed It, our weekly five-minute rundown of important channel news stories that might have flown under the radar last week. This episode of In Case You Missed It is brought to you by ESET Canada. ESET's Women in Cybersecurity Scholarship is now open for 2026, with three $5,000 awards available to women pursuing careers in cybersecurity. Applications close April 8. Learn more and apply. On this episode: Bell Canada bets big on AI in Saskatchewan. Bell Canada and the Government of Saskatchewan announced a 300-megawatt AI data center outside Regina — Canada’s largest purpose-built facility, projected to generate up to $12 billion in economic value for the province. Cerebras Systems and CoreWeave are signed on as anchor tenants. For the Canadian channel, the downstream opportunities in connectivity, edge infrastructure, and AI professional services are worth watching, as is the data sovereignty angle of keeping AI compute on Canadian soil. The Globe and Mail’s take on what this signals about Bell’s broader AI strategy. WBM Technologies says buy your RAM now. WBM’s March IT Procurement Update is the most useful thing a Canadian partner has published this month. Every vendor category is listed as constrained. HPE has seen a 24-30% list price increase in March alone. Fortinet is implementing monthly 10% price increases. HP is coming with another 10%+ increase April 1. WBM’s recommendation: buy the RAM and storage you need for the lifetime of the system. Nature magazine is calling it “RAMmageddon.” AWS brings AI agents to partner selling. At its Global Partner Summit, AWS announced AI-powered sales agents in Partner Central, built on Amazon Bedrock AgentCore. Partners can upload meeting notes, auto-update opportunity records, check funding eligibility, and generate draft MAP funding requests. AWS reports 15% higher win rates and 44% faster close times from its solution matching engine. Another signal that vendors are using AI to fix the administrivia of partner selling. Exabeam launches new MSSP commercial framework. Exabeam expanded its APEX Partner Program with two new licensing models for MSSPs: a single pooled multi-tenant option and a federated subscription model. For partners building or scaling MSSP practices, it’s designed to offer more flexibility in packaging and pricing Exabeam’s SIEM and analytics platform. This week on In The Channel: Canadian MSPs plan the lowest pay increases of any region, and that might not be a bad thing (Tuesday) Most MSP contracts wouldn’t survive a courtroom — here’s where to start fixing that (Wednesday) Cisco Canada sees a “perfect storm” driving multi-year infrastructure refresh (Thursday) From NetSuite President’s Club to grain-to-bottle whisky in the Eastern Townships — our first Life After the Channel episode (Friday) Read Full Transcript Welcome to In Case You Missed It from ChannelBuzz.ca. I’m Robert Dutt, editor of ChannelBuzz.ca. Today is Monday, March 23rd, 2026. Let’s get your week started right. This week’s In Case You Missed It is brought to you by ESET Canada. ESET’s Women in Cybersecurity Scholarship is now open for 2026, with three $5,000 awards available to women pursuing careers in cybersecurity. Applications close April 8th. Learn more and apply at eset.com/ca. ESET – protecting progress. The biggest Canadian tech infrastructure story in a while landed last week, and it didn’t come from Toronto or Montreal or Vancouver. Bell Canada announced a partnership with SaskTel and SaskPower to build a 300-megawatt AI data center outside Regina, Saskatchewan. The facility is projected to generate up to $12 billion in economic value for the province, and it’s being positioned as Canada’s largest purpose-built data center. The anchor tenants tell you where this is headed: Cerebras Systems and CoreWeave, two of the biggest names in AI compute infrastructure, are signed on. This isn’t a general-purpose facility — it’s built for the kind of GPU-dense, power-hungry workloads that AI training and inference demand. For the Canadian channel, there are a few things to watch. Local IT providers in Saskatchewan and Western Canada could see downstream opportunities in connectivity, edge infrastructure, and professional services around AI deployments. The data sovereignty angle is real — keeping AI compute on Canadian soil is increasingly a selling point with public sector and regulated-industry customers. And the scale of this investment signals that Canada is becoming a serious destination for AI infrastructure, not just a market that consumes AI services built somewhere else. If you’re quoting hardware right now, you need to see WBM Technologies’ March procurement update. It’s the most useful thing a Canadian partner has published this month, and the message is blunt: They're telling customers to buy the RAM and storage you need to support your systems for the lifetime of that system. Every single vendor category WBM tracks is now listed as constrained. HPE has seen a 24 to 30 percent list price increase in March alone, with quote validity down to just 14 days. Fortinet is implementing monthly 10 percent price increases. Dell expects further adjustments on March 30th. And HP is coming with another minimum 10 percent increase on April 1st. WBM is linking to Nature magazine, which is calling this “RAMmageddon.” If you’ve been following our coverage of the component shortage over the past few weeks, this is the same story, but it’s accelerating. We’ll have a link to the full WBM update in the show notes. It’s worth bookmarking. Two weeks ago on this podcast, we talked about Ingram Micro’s AgenTeq platform and the push to bring agentic AI into the distribution workflow. Now AWS is doing something similar inside Partner Central. At its Global Partner Summit, AWS announced AI-powered sales agents built on Amazon Bedrock AgentCore. Partners can upload meeting notes and have opportunity records auto-updated. The agent flags whether a deal qualifies for AWS funding programs like MAP and can generate draft funding requests pre-filled with deal details. AWS says partners using its solution matching engine are seeing 15 percent higher win rates and 44 percent faster close times. The pattern is becoming clear: vendors are using AI to fix the messy middle of partner selling — the admin, the quoting, the funding applications, the administrivia. Worth watching how quickly this becomes table stakes. And finally, Exabeam launched a new commercial framework for MSSPs last week, offering two licensing models: a single pooled multi-tenant option and a federated subscription model. The idea is to give managed security service providers more flexibility in how they package and price Exabeam’s SIEM and analytics platform for their customers. For partners building or scaling MSSP practices, it’s worth a look. We’ll have a link in the show notes. Those are some of the things we were paying attention to last week.  Big week ahead on In The Channel.  Peter Kujawa from ConnectWise’s Service Leadership practice on why Canadian MSPs are planning the lowest pay increases of any region — and why that might not be a bad thing.  Rob Scott from Monjur on why most MSP contracts wouldn’t survive a courtroom.  Cisco Canada on the perfect storm driving a multi-year infrastructure refresh.  And our very first Life After the Channel episode, with Martin McNicoll, who went from NetSuite President’s Club to making grain-to-bottle whisky in the Eastern Townships.  For ChannelBuzz.ca, I’m Robert Dutt. Have a great week, and I’ll see you in the channel.

The structural shift explored centers on the reconfiguration of labor dynamics within the MSP sector, driven by slowing wage inflation, increased automation, and the early adoption of AI. This mechanism is documented in the Service Leadership Annual IT Solution Provider Compensation Report, which highlights how top-performing MSPs are leveraging automation and AI for productivity improvements rather than aggressive hiring strategies. The report, as referenced by Service Leadership (a ConnectWise company), provides direct benchmarking on compensation and operational models, underscoring a pivot from pure labor-intensive growth to efficiency and automation as profit drivers. According to the report, wage inflation in the MSP space peaked in 2021–2022, with MSPs facing cost increases as high as 10–14%, but pressures have since gradually eased. Despite this moderation, labor represents 75–80% of cost of goods sold, and wages continue to rise at nearly twice the rate of the consumer price index, the report finds. Best-in-class MSPs have achieved higher margins per employee by both slowing headcount growth and integrating automation and AI, rather than through blanket budget cuts or wage freezes. Notably, these more productive MSPs employ a higher proportion of junior (level 1) technicians, maintain lower average compensation per employee, and tie greater proportions of total pay to performance-based incentives, unlike the bottom quartile. The episode also references broader MSP market forces including security concerns amplified by AI adoption, persistent vendor support gaps such as those with Microsoft, and instability illustrated by OpenAI's controversial government contracts and resulting user boycotts. These developments demonstrate how increasing automation and agent-based AI can pose new governance requirements, business continuity risks, and ethical dilemmas. Commentary from the SMB Community Podcast reinforces that industry consolidation, vendor reliability, and the balance between productivity and customer satisfaction will remain ongoing concerns for operators. For MSPs and IT service leaders, the implication is not a simple outsourcing of operational burden to technology, but an increase in vendor dependency, requirement for ongoing process redesign, and heightened need for accountability in compensation, automation, and security policy. Adopting automation and AI is likely to shift job mixes and compensation frameworks, reducing reliance on senior technical labor but requiring rigorous performance-based structures and clear governance for emerging technologies. The trend also signals a need for careful vendor selection and data management, as operational resiliency becomes increasingly tied to the stability and support capacity of automation and AI infrastructure providers. Supported by: RythmzABC Solutions, LLC

The deployment of artificial intelligence across the business sector is introducing structural margin pressure rather than delivering the promised productivity dividend. Rather than self-funding through measurable efficiency gains, AI investments are currently being financed through compensation cuts, organizational tightening, and heightened performance expectations, as evidenced by data from ActivTrak, Gallup, Novoresume, and ResumeBuilder. This shift positions AI less as a driver of output and more as a cost-cutting measure embedded in software spending. Concrete developments show that, according to ActivTrak analysis, time spent on email and messaging has increased after AI adoption, while uninterrupted focus time has declined. Gallup data confirms that about 40% of employees use AI tools, though only a fraction leverage them effectively. Novoresume's survey reveals that although half of AI users report completing tasks more quickly, much of the saved time is not reinvested in productive output, and over half of respondents believe they could perform their roles at a similar level without AI involvement. Supporting evidence from Jobs for the Future identifies significant worker skepticism and low readiness, with only 36% of employees feeling equipped to use AI effectively and 44% viewing AI as a net negative for jobs and quality of life. Further, Snowflake's findings indicate that organizations are adjusting headcount to fill new skill gaps while eliminating overlapping functions. Inside the channel, ConnectWise observes that larger MSPs and VARs are curtailing compensation increases and relying on AI as a headcount management lever, exacerbating delivery expectations as evidenced in the Resume Builder findings. The operational consequences for MSPs and IT service providers are clear: organizations can no longer treat AI as a simple add-on. Providers face heightened expectations to deliver measurable outcomes—such as enhanced ticket resolution or lower escalation rates—despite constrained labor resources and ongoing workflow disruption. Without system-level productivity proof, procurement may preemptively reduce service spend. Effective risk management now requires auditing AI deployments for verifiable workflow changes, embedding measurable AI outcomes in QBRs, and treating workflow redesign and user training not as optional extras but as necessary, billable services. 00:00 Busier With AI 03:05 AI Outpaces Workers 05:33 MSP Squeeze 07:46 Why Do We Care?  Supported by:  Nerdio , HaloPSA

Scans for "adminer" https://isc.sans.edu/diary/Scans%20for%20%22adminer%22/32808 Background Security Improvement for WebKit https://support.apple.com/en-us/126604 Remote Pre-Auth Buffer Overflow in GNU Inetutils telnetd (LINEMODE SLC) https://lists.gnu.org/archive/html/bug-inetutils/2026-03/msg00031.html ScreenConnect 26.1 Security Hardening https://www.connectwise.com/company/trust/security-bulletins/2026-03-17-screenconnect-bulletin

In this episode of Partnerships Unraveled, we sit down with Varshaa Pallaath, Director of Global Customer and Partner Marketing at ConnectWise, to unpack what partners actually need right now and how vendors can support them in a market that is shifting fast. Drawing on years of experience across startups, scale, acquisition, and global partner marketing, Varshaa shares a grounded view of what is driving partner decisions today: team efficiency, customer trust, and the ability to grow with intention.For channel professionals, this episode is packed with practical thinking on how to stay relevant, lead through change, and build partner engagement around curiosity, intentionality, and connection. It is a candid discussion about what it takes to help partners run smarter businesses while keeping the human side of the channel firmly in focus._________________________Learn more about Channext

The episode identifies a fundamental structural shift in the MSP and IT services landscape: vendor channel consolidation and ecosystem dependency are increasingly determining who controls customer relationships, margins, and access to recurring revenue streams. Companies such as Microsoft, Anthropic, and Huntress are actively reshaping the ecosystem by investing significant resources in partner programs and platform strategies that dictate operational baselines and restrict neutrality. This realignment is driving MSPs to deliberately choose platform alignments, as attempting to remain neutral increasingly results in a loss of relevance and market access. Central to this shift is Anthropic's $100 million investment in launching the Claude Partner Network for 2026, which creates certification and co-sell incentives for firms capable of implementing Claude within enterprise environments. According to Dave Sobel, this is not long-range product development but a concentrated customer acquisition cost to rapidly build channel coverage. In parallel, Microsoft is embedding Anthropic models within Copilot, shifting to a multi-model approach that retains flexibility at the AI model layer while keeping Azure as the entrenched operational platform. Supporting developments reinforce these channel and ecosystem pressures. Huntress's move to expand its partner program to value-added resellers (VARs) dilutes its previously MSP-exclusive channel, removing some of the distribution advantages MSPs may have relied upon. Sonomi's positioning of third-party risk management as an MSP revenue opportunity comes amid rising supply chain risk, as supported by ConnectWise's 2026 MSP Threat Report highlighting increased identity abuse and supply chain attacks. Simultaneously, declining PC shipments—especially for budget devices—are shifting the economic emphasis from hardware projects to operational service engagements such as identity governance and lifecycle management. The operational implications for MSPs are clear: partner program frameworks have become the gatekeepers of pricing, leads, and ongoing service annuities, reducing the room for independent strategy or procurement-driven decisions. Ecosystem alignment must be intentional and based on a realistic assessment of program timelines, certification windows, and revenue structure. As hardware refresh cycles slow and vendors consolidate services and identity requirements, MSPs face increased dependency risk, potential margin erosion, and diminished negotiating leverage. Those failing to anticipate or adapt to these shifts risk being relegated to subcontractor roles without control over customer relationships or recurring revenues. Three things to know today 00:00 AI Channel War 02:27 Identity Baseline Shift 03:43 Refresh Revenue Shift 04:46 Why Do We Care?  Supported by:  Small Biz Thoughts Community   

Send a textIn this wide-ranging and deeply thoughtful conversation, Joey Pinz sits down with Jason Magee, former CEO of ConnectWise and current CEO of Cynet, to unpack what leadership really looks like when the stakes are high and the noise is constant.Jason shares his personal journey through a major health challenge, a high-profile CEO transition, and the mindset shift required when moving from leading a global platform company to scaling a fast-growing cybersecurity organization. Together, they explore the difference between leaders and managers, how to spot real growth versus empty visibility, and why disciplined decision-making matters more than ever.The conversation dives deep into AI, automation, cybersecurity, and the realities MSPs face today—from talent shortages to increasing threat pressure and consolidation. Jason also opens up about motivation, legacy, burnout avoidance, and how leaders can stay grounded while navigating complexity.This episode is a masterclass in modern leadership, focus, and long-term thinking—for CEOs, founders, MSPs, and anyone responsible for building teams, platforms, and trust in a rapidly evolving industry. 

Send a textHow do you scale a home service business to a 9-figure valuation in record time? In this episode of Let's Vent Podcast, we sit down with Tim O'Reilly, the CEO of Guild Garage Group, to share his professional journey from a CPA at UCF to the CEO of a massive private equity-backed powerhouse.Tim reveals the "Language of Business" that allowed him to transition from auditing to leading, and the specific leadership framework he used to achieve in 11 months what takes most companies 5 years. If you want to understand the intersection of high-level finance and boots-on-the-ground service, this is the episode you were waiting for.Inside the Episode you will learn: The CPA Edge: Why accounting is the ultimate foundation for any CEO.The $1.1B Lesson: What Tim learned working with Arnie Bellini and the ConnectWise exit.The 5 Pillars of Relationship Leadership: Trust, Listening, Respect, Influence, and Caring.The "Triple Eight" Rule: How Tim manages a 9-figure empire while protecting family time and personal growth. How to create The blueprint for scaling home services through private equity and strategic partnerships.Connect with Tim & Guild Garage Group:LinkedIn: https://www.linkedin.com/in/toreilly/ Timestamps: 1:30 - How an accountant from Orlando became the CEO of one of the fastest-growing garage door companies in the world? 7:54 -  The importance of relationships and How can they build you up 9:11 - Even successful businesses have many things that can be transformed.13:54 - The value of culture.15:27 - Easy decisions are a distractions 18:36 - How to create a winning playbook and be a value-based CFO versus a cost-cutting CFO.21:38 - The start of Guild Garage Group 24:14 - Start with relationships first, take extra time.25:05 - How to apply the experience into an Action Plan28:35 - The 5 Pillars of Leadership Relations 30:30 - Brianna Skington, the best example of a relationship built from Trust, Creativity and amazing solutions in Marketing.33:38 - prioritize personal check-in first in one-on-one meetings is called the "oxygen goal" 35:34 - The best influencers are those who are very easily influenced and allow themselves to take in different perspectives.38:30 -  "People don't care how much you know until they know how much you care,"42:39 - The Guild Garage Group has a leadership development course that teaches the five characteristics: trust, listening, respect, influence, and care.46:58 - The importance of protecting your time52:56 - The ONE Thing by Gary Keller– discusses that saying "yes" to something is saying "no" to everything else, putting time into perspective.55:19 - The makers versus managers concept1:12:10 - How to build a Strong Culture focusing on the positive1:21:30 - Get the right systems in front of your Team 1:29:05 - The Ability to build constructive criticism 1:36:20 - What is your Goal? 1:47:25 - The Voice inside your Head talks to you than any other Voice1:54:50 - Episode Ends

The current wave of managed service provider (MSP) consolidation and rollups is being distinguished by the integration of advanced artificial intelligence (AI) expertise, particularly among entities such as SHIELD and Titan. As discussed by Rich Freeman and Jessica Davis, these newer rollups are acquiring not just MSPs but also Silicon Valley AI talent and developing proprietary AI-driven services, a marked shift from earlier private equity-backed consolidators. Rich Freeman highlighted SHIELD's recent leadership hires from Palantir and direct collaboration agreements with OpenAI, signaling an intent to embed AI at the operational core rather than simply as a tool for optimization.The structure and access to data is central to these developments. As Rich Freeman elaborated, large rollups possess a scale-driven “AI flywheel” advantage: broader customer bases provide larger datasets, which in turn drive better AI performance, operational efficiency, and profitability. This concentration creates risks for smaller MSPs that lack equivalent data pools and resources for internal AI development. Jessica Davis noted that while tool vendors and platform companies such as ConnectWise and Kaseya are enhancing AI within their offerings, their efforts are not yet matching the focused investments of the largest rollups, and are simultaneously being pressured to accelerate innovation.Commercial and operational pressures are increasing throughout the MSP ecosystem. Jessica Davis cited indications of slowing managed services revenue growth projections (potentially below 10%), alongside potential cost-cutting or workforce reductions within large rollups as private equity owners seek AI-driven returns. Divergent rollup models are also emerging—with distinctions between platform centralization (e.g., retiring acquired brands) and decentralized, founder-friendly approaches (e.g., preserving local brands and founder involvement). Decisions around acquisition, platform engagement, and specialization are increasingly nuanced as founders and owners evaluate their options under new market dynamics.For MSPs and IT service leaders, these trends necessitate a measured response. The competitive risk posed by the AI-fueled scale of consolidated rollups underscores the importance of specialization, operational focus, and alignment with platform partners committed to democratizing AI resources. Community collaboration, best-practice sharing, and strategic use of vendor tools are positioned as potential mitigants to the structural disadvantages faced by smaller organizations. Governance, due diligence, and clear assessment of vendor or acquirer incentives should be prioritized, especially as service models and influencer dynamics continue to fragment. Remaining adaptable, resource-aware, and critically informed about the changing power landscape will be vital for sustainable operations.

OpenAI is introducing advertisements into ChatGPT for free and ChatGPT Go users, aiming to fund artificial general intelligence development. These ads will be clearly labeled and separate from AI responses, with OpenAI stating user conversations will remain private and data will not be sold. Ads will be excluded from sensitive topics. Users can avoid ads by upgrading to a paid subscription, such as the new $8/month ChatGPT Go tier, which offers increased limits and access to the latest model but also features advertisements. This move signifies a monetization strategy, with OpenAI reporting significant revenue growth for ChatGPT.The broader impact of AI on jobs is also discussed, with data suggesting job losses attributed to AI may be overstated. While some roles are affected, particularly entry-level positions, the overall employment impact appears limited. Reports indicate that AI is often used as a justification for layoffs driven by economic factors or overhiring, rather than being the sole cause. The analysis highlights that AI's productivity gains are currently modest, requiring substantial increases to drive large-scale job replacement. However, the International Monetary Fund estimates nearly 40% of global jobs are at risk due to AI, with a growing demand for new skills that offer a wage premium.Automation and platform integrations are accelerating, with ConnectWise acquiring ZofIQ to automate service desk operations within its PSA workflow. D&H is expanding its logistics capabilities by acquiring fulfillment.com, enhancing its supply chain services. Microsoft MVPs are collaborating to showcase free Intune management tools to help organizations manage their Intune environments more effectively. These developments indicate a trend towards deeper platform integration and automation within IT service delivery and logistics.For MSPs and IT service providers, these developments highlight several critical considerations. The introduction of ads in AI tools like ChatGPT raises questions about trust and governance, particularly when these tools are integrated into client-facing workflows. The slowdown in hiring, especially for junior roles, underscores the need for strategic talent development to avoid future capacity gaps. Furthermore, the increasing automation within platforms and services, while offering efficiency, necessitates careful management of counterparty risk, clear contractual definitions of authority, and redefined pricing models to account for shifting liability and decision-making. Vendors retreating from emerging technologies like Meta's VR business also underscore the importance of diligent vendor selection and managing the credibility cost associated with adopted technologies. Four things to know today 00:00 Jobless Claims Fall as Small Businesses Pull Back on Hiring, Especially Entry-Level Roles05:45 OpenAI Adds Ads to ChatGPT as It Scales Revenue, Expands Go Tier, and Deepens Enterprise and SMB Adoption09:17 Automation Moves From Tools to Authority as ConnectWise, D&H, and Intune Ecosystems Shift Control—and Risk13:05 Meta's Retreat from Business VR Leaves MSPs Managing Cleanup, Data Deletion, and Client Expectations This is the Business of Tech.    Supported by:  https://scalepad.com/dave/

Send us a textRecorded live at IT Nation, MJ Shoer (Chief Community Officer, GTIA) breaks down how the newly branded Global Technology Industry Association is delivering practical wins for MSPs. We cover the GTIA ISAO (built with ConnectWise) for actionable threat intelligence, the cybersecurity Trust Mark that validates your internal controls against your chosen framework, and how GTIA's unbiased research can be co-branded for QBRs to boost credibility and close rates. MJ also unpacks workforce strategy with “NowGen”—supporting both youth and mid-career changers—plus global mentorship, learning libraries, and why ConnectWise-sponsored memberships are a fast on-ramp. We close with GTIA's growing foundation work and MJ's personal take on discipline, recovery, and building routines after injury. If you run an MSP and want immediate ROI from a trade association, this one's loaded with specifics you can apply this quarter.Top 3 highlightsClear, fast ROI: GTIA ISAO access, co-brandable research, and ConnectWise-sponsored memberships for partners.Security you can show: the GTIA Cybersecurity Trust Mark validates your practices against your chosen framework.Talent + growth: NowGen pathways, global mentorship, and a learning library spanning soft skills to leadership.  #JoeyPinz #MSPInfluencer #ForzaDash #ITNation #ITN25 #MSP #GTIA #Cybersecurity #ThreatIntelligence #CompTIA #Mentorship #QBR --- Join us for enlightening discussions that spark growth and exploration. Hosted by Joey Pinz, this Discipline Conversations Podcast offers insights and inspiration. 

Planning for a successful TSP and conference journey begins with one essential principle: make every client and every attendee feel as though the message was crafted specifically for them. In this special IT Nation Connect Global edition, we sit down with Syed Fraz, CEO of ITMSC, and Amanda Young, Sr. Director of Global Events at ConnectWise, to explore how personalization, preparation, and community-driven experiences shape stronger outcomes for both MSPs and major industry conferences.    We get a glimpse of Syed's entrepreneurial mindset and appetite for growth. Syed shares how MSPs can embrace AI, foster open conversations, empower their technicians, and cultivate relationships where “everyone is a friend.” Amanda takes us behind the curtain of a world-class event—revealing the six-month planning window, the five pillars guiding IT Nation's design, and how her team balances tradition with innovation in an era where technology and attendee expectations evolve rapidly.  Her goal, 'it's about a connected experience' and one that is community-centric.   Learn more by visiting syncgoose.com, itmsc.net/ and itnation.connectwise.com/ See you at the next ITNation Conference & Tech event   Timestamps: 01:14 – Marker Part 1: Syed Fraz   27:36 – Marker Part 2: Amanda Y_PGM    --- more --- If you want to master the art of audience engagement while learning how to conquer speaking anxiety, deliver persuasive presentations, and close more deals, this is the program for you. Twins Talk It Up is hosted by identical twin brothers Danny Suk Brown and David Suk Brown, who share leadership communication strategies designed to help professionals embrace the power of their authentic voice. Together, we'll explore tips and tools to unlock the full potential of your voice, dominate every stage you step onto, and elevate your influence and value. Along the way, we'll crush goals and share plenty of laughs. Book a Free 15-minute discovery call: dsbleadershipgroup.com/schedule-a-call/ Website: appmeetup.com/twinstalkitup/ Community: facebook.com/groups/publicspeakingpoints Patreon: patreon.com/twinstalkitup

Send us a textWhat do chess, rock climbing, and business have in common? For tech visionary and problem-solver Stephen Yu, everything is a puzzle waiting to be understood. In this episode of Joey Pinz Conversations, we explore how the founder of Adaptive Catalog approaches life and leadership through curiosity and pattern recognition—from teaching his son chess to building solutions that let MSPs “sell without quoting.”Stephen shares his journey from Quosal's early ConnectWise days to creating Adaptive Catalog, a platform reshaping how IT resellers and MSPs buy and sell. He opens up about his personal health wake-up call, reversing diabetes through determination, and how discipline, empathy, and fit guide every part of his life.✨ Top 3 Highlights:1️⃣ How chess and climbing teach pattern recognition and problem-solving.2️⃣ Why great partnerships depend on shared values and “fit.”3️⃣ The future of MSP automation and ethical AI in business.#JoeyPinzPodcast #MSPInfluencer #MSPCommunity #AdaptiveCatalog #AI #MSP #ConnectWise #Entrepreneurship #ProblemSolving #Leadership #TechInnovation #HealthJourney #Podcast #ForzaDash #ITNation #ITN25   Episode Links: https://www.linkedin.com/in/yushifan/https://www.linkedin.com/company/adaptive-catalog/https://www.adaptivecatalog.com/  Tags:Stephen Yu, Adaptive Catalog, MSP, ConnectWise, AI, entrepreneurship, leadership, tech innovation, problem solving, podcast, Joey Pinz Conversations, health, diabetes recovery, ITNationSupport the show

Send us a textAt IT Nation Connect 2025, Mike DePalma—VP of SMB Cybersecurity at OpenText—sits down with Joey Pinz to talk about rebuilding community in the MSP world, evolving vendor programs, and the tidal wave of AI reshaping security and operations.Mike shares how OpenText's new EDR rollout is simplifying life for ConnectWise partners, the surprising results of their latest MSP Report, and why most AI projects fail—hint: it's not the tech. He opens up about the Datto → Kaseya acquisition, lessons in leadership, and why discipline, presence, and family still define success more than revenue or market share.

ConnectWise has announced enhancements to its Ozzio platform, which now includes expanded third-party patching for over 7,000 applications, improvements to the professional services automation (PSA) user experience, and advanced robotic process automation (RPA) capabilities. These updates aim to address security vulnerabilities in widely exploited applications and streamline operations for managed service providers (MSPs). The new features are set to improve operational efficiency and security, with the expanded patching available immediately and RPA features expected to roll out in the coming months.In conjunction with these updates, ESET has integrated its ESET Protect platform with ConnectWise Ozzio, allowing for one-click deployment of security management tools. This integration is designed to enhance the efficiency of security tasks for MSPs, enabling them to meet legal and insurance requirements more effectively. Additionally, ConnectSecure has introduced AI-powered vulnerability management reports that prioritize risks based on business impact rather than just technical severity, further supporting MSPs in delivering proactive risk assessments.OpenAI has surpassed 1 million business customers, marking it as the fastest-growing business platform in history. A Wharton study indicates that 75% of enterprises using AI technologies report a positive return on investment. Meanwhile, Google has launched Gemini AI tools for stock traders and improved hurricane prediction capabilities through its DeepMind technology, showcasing the growing integration of AI across various sectors, including finance and weather forecasting.For MSPs and IT service leaders, these developments underscore the importance of integrating advanced security and AI capabilities into their service offerings. As the landscape shifts towards cyber resilience and AI-driven solutions, providers must adapt by leveraging these tools to enhance their operational efficiency and client services. The focus on measurable outcomes, such as trust and risk management, will be crucial for maintaining competitive advantage in an increasingly automated environment.  Four things to know today00:00 At IT Nation Connect, ConnectWise Focuses on Asio Enhancements While Ecosystem Partners Deliver the Bigger Innovation05:37 N-able Rebrands Its Future: Strong Earnings and AI-Fueled Pivot Toward Cyber Resilience08:31 From ChatGPT to Hurricanes: How AI's Expansion Is Turning Tools Into Core Business Systems11:14 Trust, Transparency, and Transformation: How AI Acceleration Is Forcing Leaders to Rethink Human Metrics This is the Business of Tech.    Supported by:  https://mailprotector.com/mspradio/

Michael Assraf is building Flamingo, an open-source and AI-powered operating system for managed service providers. After exiting Vicarious in May 2024, he spent seven months on market research before writing a single line of code—conducting 15+ MSP interviews, mapping their complete tool stack economics, and testing distribution channels with a free community product. The research revealed a structural margin crisis: MSPs operate on 10-15% margins with 30% of revenue flowing to vendor payouts and 25-30% to technician labor. Meanwhile, private equity consolidation drives customer pricing down while legacy vendors raise prices. Michael closed a $2.2 million pre-seed in February 2025, built OpenMSP as a lead-gen vehicle that generated 1,000+ waitlist signups, and launched Open Frame with 70% of capital still in the bank. In this launch-day conversation, he breaks down why the $380 billion MSP market remains massively underinvested, how Facebook ads outperformed LinkedIn 5:1, and why he's giving away the core product while charging for hosted deployment. Topics Discussed: The seven-month research phase: 15+ MSP interviews, mapping 19 tool categories with pricing data, evaluating open source project maturity through commit frequency and VC backing MSP margin compression mechanics: 30% vendor payouts, 25-30% labor costs, 10-15% net margins being crushed by PE-driven consolidation and vendor price increases Building OpenMSP as distribution validation: four months before alpha, generated 1,000 waitlist signups and 200 Slack members while testing paid acquisition channels Why Facebook delivered 40%+ of leads at $6-8 CPL while outbound completely failed with IT-busy MSPs aged 25-50 in central US markets Launching with 70% of $2.2M pre-seed still in bank by solving for distribution and product-market fit before scaling headcount Open Frame's architecture: unified control plane over open source tools (RMM, SSO, zero trust) with dual AI agents—one for end users, one for technicians Offering both self-hosted (free, GitHub) and commercial SaaS (per-seat pricing starting January 2026) to build trust in an underserved market The MSP category opportunity: $380B market, 12% annual growth, 30-40K US MSPs, minimal VC-backed innovation against 20-year-old incumbents GTM Lessons For B2B Founders: Build lead-gen infrastructure before you have a product to sell: Four months before launching Open Frame, Michael shipped OpenMSP—a free tool that analyzes MSP tech stacks and suggests open source replacements. It wasn't a waitlist landing page; it delivered standalone value while capturing intent data. This generated 1,000 qualified signups and 200 Slack community members while simultaneously validating paid acquisition channels. By launch, he knew Facebook cost $6-8 per lead while outbound failed completely. Most founders build product first, then scramble for distribution. Michael inverted the sequence. Fire fast on sales hires in early stage, or don't hire them at all: Michael fired three VP Sales at Vicarious before learning the lesson: "The moment to bring salespeople is not when you are able to sell your product, is when someone else is able to sell your product." The critical test isn't whether the founder can close deals—founders sell vision and relationship. The test is whether a marketing person, SDR, or non-sales hire can generate revenue. Only then do salespeople accelerate an already-working motion. Hiring VP Sales at $50K ARR because the board wants "someone to own revenue" burns 12+ months and $200K+ learning this. Spend 6-12 months researching before building in unfamiliar markets: Michael conducted 15+ MSP interviews, mapped all 19 tool categories they use with pricing, evaluated open source alternatives by analyzing GitHub commit frequency and pull requests, identified which projects had VC backing for long-term viability, and tested multiple marketing channels before alpha deployment. This allowed him to launch with product-market fit indicators already validated and 70% of his $2.2M still in the bank. The alternative—build fast, iterate with customers—works when you deeply understand the market. When you don't, research is cheaper than pivots. Target categories where lack of innovation creates adoption momentum: MSPs represent 30-40K companies in the US alone, part of a $380B global market growing 12% annually. Yet VCs historically avoided the space assuming low ACV and high churn. The dominant platforms—ConnectWise, Datto, Asea—have existed 20+ years with minimal AI adoption or architectural modernization. Michael specifically chose MSPs because "in cyber security you would never get traction that we're getting right now unless you're spending millions of dollars." In crowded categories, distribution cost kills you. In starved categories, any credible innovation gets attention. Architect your product so adoption mechanically improves customer unit economics: Open Frame attacks both sides of MSP margin compression simultaneously. The open source tool suite eliminates the 30% of revenue paid to commercial vendors. The dual AI agent system (end-user self-service + technician orchestration) reduces the 25-30% spent on labor. Michael didn't find a problem and then figure out monetization—he reverse-engineered a solution where product adoption directly expands customer margins. When your product makes customers structurally more profitable, adoption isn't a marketing problem. // Sponsors: Front Lines — We help B2B tech companies launch, manage, and grow podcasts that drive demand, awareness, and thought leadership. www.FrontLines.io The Global Talent Co. — We help tech startups find, vet, hire, pay, and retain amazing marketing talent that costs 50-70% less than the US & Europe. www.GlobalTalent.co   //   Don't Miss: New Podcast Series — How I Hire Senior GTM leaders share the tactical hiring frameworks they use to build winning revenue teams. Hosted by Andy Mowat, who scaled 4 unicorns from $10M to $100M+ ARR and launched Whispered to help executives find their next role. Subscribe here: https://open.spotify.com/show/53yCHlPfLSMFimtv0riPyM

Small and medium-sized businesses (SMBs) are significantly increasing their spending on cybersecurity solutions, with managed detection and response (MDR) and network detection and response (NDR) expected to grow by 107% and 118%, respectively. However, despite this financial commitment, a recent study reveals that 83% of SMBs do not conduct formal security awareness training, and nearly half lack established incident response protocols. This operational gap is concerning, as the average financial loss from a security incident for these businesses is estimated at $1.6 million. The study emphasizes that technology alone cannot address the underlying issues of process and expertise that leave many businesses vulnerable.Microsoft's sixth annual digital defense report highlights a troubling trend where over half of cyberattacks are now financially motivated, with ransomware and extortion being primary drivers. Critical public services, such as hospitals and local governments, are particularly at risk due to limited cybersecurity budgets and inadequate incident response capabilities. Nation-state actors are also evolving their tactics, with countries like China and North Korea increasing their cyber espionage efforts. Microsoft stresses the importance of organizations staying informed about threats and collaborating with industry peers to enhance their defenses.For managed service providers (MSPs), this situation presents a unique opportunity. Clients are investing in cybersecurity tools but require assistance in operationalizing these tools into effective security measures. MSPs can help by building processes, training personnel, and conducting tabletop exercises to ensure that businesses are not just purchasing products but are genuinely prepared for potential threats. The podcast emphasizes that cybersecurity is not merely about acquiring tools; it is fundamentally about preparedness and having a well-executed plan tailored to the business's needs.Additionally, the episode discusses recent product updates from various vendors, including Nerdio, SureWeb, and Veeam, which are introducing new AI tools and partner updates to enhance MSP operations. The importance of human capital in maintaining complex systems is also highlighted, particularly in light of Amazon's recent AWS outage, which was exacerbated by significant layoffs leading to a loss of institutional knowledge. The podcast concludes with a call for MSPs to audit their technology stacks and focus on the impact of workflows rather than just features, ensuring that they are prepared for any chaos that may arise. Four things to know today00:00 The Cybersecurity Paradox: SMBs Spend More Than Ever, But Stay Just as Vulnerable04:21 ConnectWise's Critical Automate Flaws Highlight the Growing Risk of On-Prem RMMs06:11 From Layoffs to Latency: Amazon's DNS Outage Reveals the True Cost of Lost Expertise09:06 AI, Compliance, and Cloud PCs: Vendors Race to Redefine MSP Efficiency Ahead of Microsoft's 2025 Shift This is the Business of Tech.    Supported by:  https://try.auvik.com/dave-switchhttps://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

An AWS outage sparks speculation. An F5 exposure and breach raise patching and supply-chain concerns. Salt Typhoon breaches a European telecom via a Netscaler flaw. A judge bans NSO Group from Whatsapp. China alleges “irrefutable evidence” of NSA hacking. Connectwise patches adversary in the middle risks. A Dolby decoder flaw enables zero-click remote code execution on Android. A Cyber M&A and funding surge signals a busy consolidation cycle.  Our guest Jeff Collins, CEO of WanAware, sharing how hospital consolidations are reshaping IT asset visibility and what it takes to close these gaps. One man's quest to make AI art legit.  Remember to leave us a 5-star rating and review in your favorite podcast app. Miss an episode? Sign-up for our daily intelligence roundup, Daily Briefing, and you'll never miss a beat. And be sure to follow CyberWire Daily on LinkedIn. CyberWire Guest Today we are joined by Jeff Collins, CEO of WanAware, sharing how hospital consolidations are reshaping IT asset visibility and what it takes to close these gaps. Selected Reading Cyberattack: Did China just bring Amazon down, along with Robinhood, Snapchat - what happened? Here's what experts are saying (The Economic Times) F5 breach exposes 262,000 BIG-IP systems worldwide (Security Affairs) Salt Typhoon Uses Citrix Flaw in Global Cyber-Attack (Infosecurity Magazine) Israeli spyware company blocked from WhatsApp (Courthouse News Service) China Says It Found Evidence of US Cyber Attack on State Agency (Bloomberg) ConnectWise Patches Critical Flaw in Automate RMM Tool (SecurityWeek) Vulnerability in Dolby Decoder Can Allow Zero-Click Attacks (SecurityWeek) NSO Group acquired by American investors. LevelBlue to acquire Cybereason. (N2K Pro Business Briefing) Creator of Infamous AI Painting Tells Court He's a Real Artist (404 Media) Share your feedback. What do you think about CyberWire Daily? Please take a few minutes to share your thoughts with us by completing our brief listener survey. Thank you for helping us continue to improve our show. Want to hear your company in the show? N2K CyberWire helps you reach the industry's most influential leaders and operators, while building visibility, authority, and connectivity across the cybersecurity community. Learn more at sponsor.thecyberwire.com. The CyberWire is a production of N2K Networks, your source for strategic workforce intelligence. © N2K Networks, Inc. Learn more about your ad choices. Visit megaphone.fm/adchoices

In this special episode of Sales Pipeline Radio from the Innovation Pavilion at Cvent CONNECT 2025, Matt spoke with Amanda Young, Sr. Director, Global Events at ConnectWise. Don't miss an episode! Subscribe to Sales Pipeline Radio or tune in live Thursdays at 11:30 PT | 12:30 MT | 1:30 CT | 2:30 ET on LinkedIn (also available on demand). In just 20 fast-paced minutes, host Matt interviews the brightest minds in sales and marketing, delivering actionable advice, best practices, and insights for B2B sales and marketing professionals. Sales Pipeline Radio was recently recognized as one of the 25 Best Sales Management Podcasts and Top 60 Sales Podcasts—don't miss out! You can subscribe right at Sales Pipeline Radio and/or listen to full recordings of past shows everywhere you listen to podcasts! You can even ask Siri, Alexa and Google or search on Audible!

Guest Arnie Bellini, Cyber Security Expert and founder of ConnectWise, joins to discuss foreign hacking threats to the US. Discussion of Russian and foreign government threats on US infrastructure, firewalls and security and more. With the growth of AI, are we protected both as a society and as a consumer on cyber hacks?  Guest Drew Allen, host "The Drew Allen Show" podcast, joins to break down the Russian Hoax against President Trump, exposing the deep state, and more. Discussion of the Obama administration, Russian threats against the DNC, Obamas and Clintons, and the faux claims against Trump. Is John Bolton the first in many to be exposed?

Microsoft is facing backlash from managed service providers (MSPs) for not adequately protecting them against aggressive pricing strategies employed by larger licensing solution providers. These larger entities are reportedly undercutting smaller MSPs by as much as 20%, leading to significant margin erosion and increased competition. The Cloud Solution Provider Program, which was designed to create a more equitable environment for smaller providers, has not been effectively enforced by Microsoft, leaving many MSPs feeling abandoned. Analysts warn that this trend may result in consolidation among partners, as smaller providers struggle to compete in a landscape increasingly favoring larger firms.In the realm of cybersecurity, MSPs are grappling with severe alert fatigue, with a recent survey indicating that over 75% of providers experience this issue monthly. The report highlights that larger firms are particularly affected, with nearly half of those employing over 500 staff facing daily fatigue due to excessive tools and poor integration, which leads to a high volume of false positives. Alarmingly, one in four alerts is a false positive, and many providers are hesitant to consolidate their security tools due to concerns about migration complexity and potential feature loss. Despite the clear advantages of integrating platforms and enhancing automation, only 31% of MSPs have adopted AI or security orchestration tools to alleviate their burdens.In product news, several companies have made significant announcements. SuperOps has launched an AI marketplace for MSPs in collaboration with Amazon Web Services, aiming to streamline the adoption of AI agents for various tasks. Kaseya introduced customer responsibility matrices to help MSPs comply with Department of Defense cybersecurity requirements, while ConnectWise expanded its remote monitoring and management platform to include third-party patching for over 7,000 applications. Synchro reported impressive operational efficiency improvements for a client, and Ignite unveiled a no-code framework for creating customized AI agents.Lastly, the podcast discusses the ongoing challenges faced by Intel and the vulnerabilities in Enable's remote monitoring and management solution. Intel is receiving substantial investments from SoftBank and potential support from the U.S. government, indicating a lack of market confidence in the company's performance. Meanwhile, Enable is dealing with two critical vulnerabilities that are being actively exploited, with nearly 900 servers still unpatched. The urgency for MSPs to apply updates and validate their security measures is emphasized, as these vulnerabilities pose significant risks to their operations. Four things to know today 00:00 Microsoft Faces Backlash as MSPs Accuse CSP Program of Favoring Larger Licensing Providers04:53 From SuperOps to Egnyte, Vendors Announce AI and Security Features—Syncro Stands Out With Measurable Results07:50 Chip Market Split: Intel Relies on Bailouts, Foxconn Rides Explosive AI Demand10:24 Shadowserver: Nearly 900 N-able N-central Servers Remain Unpatched Against Critical Vulnerabilities This is the Business of Tech.    Supported by: https://www.moovila.com/ https://scalepad.com/dave/ All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

The Cybersecurity and Infrastructure Security Agency (CISA) is facing significant criticism from state and local officials who feel abandoned due to diminishing federal support for critical cybersecurity programs. Many officials are concerned about their increasing reliance on self-driven initiatives, especially after cuts to the Multi-State Information Sharing and Analysis Center, which has been a crucial source of cybersecurity intelligence for over two decades. A recent survey revealed that a substantial portion of state and local governments lack adequate funding for cybersecurity, with 22% allocating no funds and 42% operating with annual budgets of less than $100,000. This situation raises alarms about the potential for increased vulnerability to cyberattacks, particularly from nation-state actors.In response to the evolving landscape of artificial intelligence, the National Institute of Standards and Technology (NIST) is developing new security guidance aimed at addressing the associated risks. This initiative will clarify how AI interacts with cybersecurity, focusing on securing AI systems, the adversarial use of AI, and leveraging AI to enhance cybersecurity measures. Additionally, a bipartisan bill known as the Validation and Evaluation for Trustworthy Artificial Intelligence Act has been reintroduced in the Senate, aiming to establish guidelines for the responsible development and testing of AI systems. House appropriators are also proposing a significant funding increase for NIST, reflecting a commitment to bolster cybersecurity and innovation.The Federal Risk Management and Authorization Program (FedRAMP) has made strides in streamlining the approval process for government cloud services, achieving a significant reduction in wait times from over a year to approximately five weeks. This shift is part of a broader trend toward more efficient cloud authorization processes, with FedRAMP already approving more than twice as many services in fiscal year 2025 compared to the previous year. This development presents an opportunity for businesses to leverage FedRAMP-authorized stacks for government-related buyers and to build migration strategies accordingly.OpenAI has recently updated its ChatGPT platform, introducing new models and third-party tool connectors while facing scrutiny over the performance and security of its latest model, GPT-5. Despite the introduction of various user-focused options, security assessments have revealed significant vulnerabilities in GPT-5, prompting concerns about its safety and reliability. As companies like ConnectWise implement new credit card surcharges and adjust their workforce in response to market demands, the overarching theme emphasizes the need for operational discipline and strategic planning in navigating the evolving technology landscape. Four things to know today 00:00 Shrinking Cyber Budgets, Emerging AI Rules, and Streamlined FedRAMP Signal Shifts for IT Providers06:43 From Security to SaaS Management, Vendors Roll Out Agentic Features for IT Service Providers10:25 OpenAI Expands GPT-5 Options, Adds Connectors, but Faces Early Security Backlash13:41 ConnectWise Adds Credit Card Surcharges, Trims Staff in Strategic Realignment  Supported by:  https://syncromsp.com/   Tell us about a newsletter!https://bit.ly/biztechnewsletter  All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Send us a textCan cold plunges and clear values make you a better cybersecurity leader? In this introspective and energetic episode from IT Nation Secure 2025, Joey Pinz speaks with Joel Cahill—Wall Street veteran, father, and founder of Infima—to explore personal growth, MSP success, and how simplicity and service win in cybersecurity.

Send us a textHow do you lead 950 engineers and still make time for mechanical watches, family, and learning? In this thoughtful and energizing episode from IT Nation Secure 2025, Joey Pinz interviews David Raissipour, Chief Technology & Product Officer at ConnectWise.

This week Steph & Ash kick off the Tampa Bay Tech PoweredUp Series, with the one and only Arnie Bellini. In this inspiring episode, we sit down with Arnie, visionary founder of ConnectWise, and one of the most influential leaders in Tampa Bay's tech scene. Arnie shares the incredible story of launching ConnectWise from a […] The post “Building Big & Giving Back” with Arnie Bellini appeared first on Radio Influence.

Cybercriminals target financial institutions across Africa using open-source tools. Threat actors are using a technique called Authenticode stuffing to abuse ConnectWise remote access software. A fake version of SonicWall's NetExtender VPN app steals users' credentials. CISA and the NSA publish a guide urging the adoption of Memory Safe Languages. Researchers identify multiple security vulnerabilities affecting Brother printers. Fake AI-themed websites spread malware. Researchers track a sharp rise in signup fraud. A new Common Good Cyber Fund has been launched to support nonprofits that provide essential cybersecurity services. Tim Starks from CyberScoop joins us to discuss calls for a federal cyberinsurance backstop. A Moscow court says ‘nyet' to more jail time for cyber crooks. Remember to leave us a 5-star rating and review in your favorite podcast app. Miss an episode? Sign-up for our daily intelligence roundup, Daily Briefing, and you'll never miss a beat. And be sure to follow CyberWire Daily on LinkedIn. CyberWire Guest We are again joined by Tim Starks, Senior Reporter from CyberScoop. Tim discusses his recent piece on “Federal cyber insurance backstop should be tied to expiring terrorism insurance law, report recommends.” Selected Reading Cybercriminals Abuse Open-Source Tools To Target Africa's Financial Sector (Unit 42) Hackers Abuse ConnectWise to Hide Malware (SecurityWeek) Fake SonicWall VPN app steals user credentials (The Register) CISA Publishes Guide to Address Memory Safety Vulnerabilities in Modern Software Development (GB Hackers) New Vulnerabilities Expose Millions of Brother Printers to Hacking (SecurityWeek) Black Hat SEO Poisoning Search Engine Results For AI (ThreatLabz) Half of Customer Signups Are Now Fraudulent  (Infosecurity Magazine) Common Good Cyber Fund Launched to Support Non-Profit Security Efforts (Infosecurity Magazine) Russia releases REvil members after convictions for payment card fraud (The Record) Audience Survey Complete our annual audience survey before August 31. Want to hear your company in the show? You too can reach the most influential leaders and operators in the industry. Here's our media kit. Contact us at cyberwire@n2k.com to request more info. The CyberWire is a production of N2K Networks, your source for strategic workforce intelligence. © N2K Networks, Inc. Learn more about your ad choices. Visit megaphone.fm/adchoices

ConnectWise is currently facing a significant crisis of trust as attackers exploit its signed software to distribute malware. This alarming trend has seen a notable increase in infections since March 2025, primarily due to poor signing practices that allow malicious users to embed harmful code within legitimate applications. Reports indicate that the ConnectWise ScreenConnect remote access tool was the most commonly abused legitimate tool in 2024, with a staggering 56% of all active threat reports involving remote access tools. The rise in phishing schemes utilizing ConnectWise samples has raised concerns about the security measures in place and the implications for managed service providers (MSPs).Despite the increasing number of breaches, a recent survey revealed that 76% of MSP leaders remain confident in their cybersecurity efforts, even as nearly 70% reported experiencing multiple cyber breaches in the past year. This disconnect between confidence and reality poses a significant problem, as many MSPs recognize the need to improve their defenses but feel ill-equipped to guide customers through complex regulatory changes. The situation is further complicated by sensationalized reports of massive data breaches, which can divert attention from verified security threats and contribute to a false sense of security.The podcast also highlights the ongoing Salt Typhoon hack, which has reportedly led to major U.S. telecommunications companies instructing their incident response teams not to seek evidence of the intrusion. This directive raises concerns about the scale of the breach and the lack of accountability within the telecom sector, where deregulation has diminished incentives for companies to invest in security measures. Experts warn that this willful ignorance sets a dangerous precedent, particularly in critical infrastructure, and emphasizes the need for a reevaluation of vendor liability in the face of such breaches.In response to the evolving challenges faced by MSPs, several vendors have introduced new tools and features aimed at improving operational efficiency and security. Synchro's Universal Billing feature aims to streamline billing processes, while Manage Engine's MSP Central platform seeks to enhance service delivery and device management. Additionally, Hornet Security has launched an AI Cyber Assistant to bolster cybersecurity for Microsoft 365 users. These developments indicate that while vendors are recognizing the challenges MSPs face, they often lag behind in providing the necessary solutions, underscoring the importance of selecting platforms that prioritize practical integration and real-world impact. Three things to know today 00:00 Legit Tools, Real Breaches: ConnectWise Malware Surge and Telecom Hacks Highlight Systemic Security Failures06:54 MSP Tools Evolve as Syncro, ManageEngine, and Hornetsecurity Target Profitability, Consolidation, and AI Security09:47 Bitdefender, Pia and Nexus IT Signal Strategic Evolution in the MSP and Security Landscape This is the Business of Tech.    Supported by:  https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Send us a textStruggling to sell while managing tech? You're not alone. In this episode of Joey Pinz Conversations, we talk with startup founder and product visionary Jean Templin live from ConnectWise IT Nation Secure 2025. Jean dives into the very real sales challenges faced by MSPs and how AI-driven real-time coaching is transforming the conversation—literally.

Quasar RAT Delivered Through Bat Files Xavier is walking you through a quick reverse analysis of a script that will injection code extracted from a PNG image to implement a Quasar RAT. https://isc.sans.edu/diary/Quasar%20RAT%20Delivered%20Through%20Bat%20Files/32036 Delayed Windows 11 24H2 Rollout Microsoft slightly throttled the rollout of windows 11 24H2 due to issues stemming from the patch Tuesday fixes. https://learn.microsoft.com/en-us/windows/release-health/windows-message-center#3570 An In-Depth Analysis of CVE-2025-33073 Patch Tuesday fixed an already exploited SMB client vulnerability. A blog by Synacktiv explains the nature of the issue and how to exploit it. https://www.synacktiv.com/en/publications/ntlm-reflection-is-dead-long-live-ntlm-reflection-an-in-depth-analysis-of-cve-2025 Connectwise Rotating Signing Certificates Connectwise is rotating signing certificates after a recent compromise, and will release a new version of its Screen share software soon to harden its configuration. https://www.connectwise.com/company/trust/advisories KDE Telnet URL Vulnerablity The Konsole delivered as part of KDE may be abused to execute arbitrary code via telnet URLs. https://kde.org/info/security/advisory-20250609-1.txt

Register for Free, Live webcasts & summits:https://poweredbybhis.com00:00 - PreShow Banter™ — Time to Bake05:12 - Chatbot Tells Addict to Take Drugs - Talkin' Bout [infosec] News 2025-05-0606:08 - Story # 1: Meta and Yandex are de-anonymizing Android users' web browsing identifiers12:55 - Story # 2: Therapy Chatbot Tells Recovering Addict to Have a Little Meth as a Treat16:11 - Story # 3: The Cost of a Call: From Voice Phishing to Data Extortion26:56 - Story # 4: Questions Swirl Around ConnectWise Flaw Used in Attacks27:40 - Story # 4b: ConnectWise email35:28 - Story # 5: Critical Cisco ISE Auth Bypass Flaw Impacts Cloud Deployments on AWS, Azure, and OCI39:27 - Story # 6: Misconfigured HMIs Expose US Water Systems to Anyone With a Browser52:20 - Story # 7: Fact Sheet: President Donald J. Trump Reprioritizes Cybersecurity Efforts to Protect America

Microsoft 365 Copilot has been identified as having a significant security vulnerability known as Echo Leak, which allows hackers to access sensitive information without user interaction. This zero-click exploit was discovered by AIM Security after three months of reverse engineering the software. Although Microsoft claims the issue has been addressed and no customers were affected, experts warn that this flaw reflects deeper security concerns in AI systems, reminiscent of vulnerabilities seen in software two decades ago. The incident raises critical questions about the security of AI agents that have ambient access to data and the need for rethinking endpoint protection and trust boundaries.OpenAI's latest threat report reveals that state-level actors, including those linked to North Korea and Russia, are exploiting ChatGPT for cyber operations. The report outlines ten operations that were shut down, including the generation of fake job applications and social media content aimed at spreading disinformation. Notably, some campaigns were traced back to China, showcasing the use of AI in creating deceptive online personas. This highlights the strategic use of AI by malicious actors, emphasizing the need for heightened awareness and security measures.ConnectWise is facing scrutiny over its recent digital certificate updates, urging customers to update their ScreenConnect, Automate, and ConnectWise RMM solutions. The company is attempting to distance itself from a previously disclosed nation-state breach while addressing concerns raised by a third-party researcher regarding configuration data handling. The rushed certificate rotation has led to reduced confidence among customers, especially given the recent history of exploitation of ScreenConnect. This situation underscores the importance of transparency and trust in vendor relationships, as well as the need for managed service providers to audit their update processes.New tools from Huntress, Netgear, and Varonis signal a shift towards more automated and resilient security solutions. Huntress has launched a Threat Simulator to enhance user engagement in security training, while Netgear's acquisition of Exium aims to simplify networking and security for managed service providers. Varonis has introduced a Model Context Protocol Server to integrate AI tools into its data security platform. These developments reflect a growing trend in cybersecurity towards realism, automation, and simplification, emphasizing the need for IT service providers to adapt and align with these evolving security landscapes. Three things to know today 00:00 From Copilot to Cybercrime: How AI Agents Are Creating New Frontlines in Espionage and Misinformation05:54 ConnectWise Urges Immediate Updates Amid Certificate Rotation, Rekindling Security Concerns After Prior Breach08:45 Automation, Engagement, and Recovery: Security Vendors Roll Out Tools That Align with MSP Priorities Supported by: https://www.huntress.com/mspradio/https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on:LinkedIn: https://www.linkedin.com/company/28908079/YouTube: https://youtube.com/mspradio/Facebook: https://www.facebook.com/mspradionews/Instagram: https://www.instagram.com/mspradio/TikTok: https://www.tiktok.com/@businessoftechBluesky: https://bsky.app/profile/businessof.tech

Patch Tuesday. Mozilla  patches two critical FireFox security flaws. A critical flaw in Salesforce OmniStudio exposes sensitive customer data stored in plain text. The Badbox botnet continues to evolve. AI-powered “ghost students” enrolling in online college courses to steal government funds. Hackers steal nearly 300,000 vehicle crash reports from the Texas Department of Transportation. ConnectWise rotates its digital code signing certificates. The chair of the House Homeland Security Committee announces his upcoming retirement. Our guest is Matt Radolec, VP of Incident Response, Cloud Operations & SE EU from Varonis, wondering if AI may be the Cerberus of our time. Friendly skies…or friendly spies?  Remember to leave us a 5-star rating and review in your favorite podcast app. Miss an episode? Sign-up for our daily intelligence roundup, Daily Briefing, and you'll never miss a beat. And be sure to follow CyberWire Daily on LinkedIn. CyberWire Guest On our Industry Voices segment, we have Matt Radolec, VP of Incident Response, Cloud Operations & SE EU from Varonis, sharing insights on AI: The Cerberus of our time. You can hear Matt's full interview here. The State of Data Security: Quantifying AI's Impact on Data Risk report from Varonis reveals how much sensitive data is exposed and at risk in the AI era. Learn more and get State of Data Security Report. Selected Reading Microsoft warns of 66 flaws to fix for this Patch Tuesday, and two are under active attack (The Register) Microsoft slows Windows 11 24H2 Patch Tuesday due to a 'compatibility issue'  (The Register) ICS Patch Tuesday: Vulnerabilities Addressed by Siemens, Schneider, Aveva, CISA (SecurityWeek) Firefox Patches Multiple Vulnerabilities That Could Lead to Browser Crash (Cyber Security News) Salesforce OmniStudio Vulnerabilities Exposes Sensitive Customer Data in Plain Text (Cyber Security News) CISO who helped unmask Badbox warns: Version 3 is coming (The Register) How Scammers Are Using AI to Steal College Financial Aid  (SecurityWeek) 300K Crash Reports Stolen in Texas DOT Hack (BankInfoSecurity) ConnectWise rotating code signing certificates over security concerns (Bleeping Computer) House Homeland Chairman Mark Green's departure could leave congressional cyber agenda in limbo (CyberScoop) Airlines Don't Want You to Know They Sold Your Flight Data to DHS (404 Media) Want to hear your company in the show? You too can reach the most influential leaders and operators in the industry. Here's our media kit. Contact us at cyberwire@n2k.com to request more info. The CyberWire is a production of N2K Networks, your source for strategic workforce intelligence. © N2K Networks, Inc. Learn more about your ad choices. Visit megaphone.fm/adchoices

Like what we're doing with the DefSec Podcast and want to help support us? Donate here: https://www.patreon.com/defensivesec In this episode of the Defensive Security Podcast, hosts Jerry Bell and Andrew Kalat discuss a range of topics including the introduction of a new cryptocurrency, Guard Llama Coin, and the implications of recent cybersecurity incidents involving ConnectWise … Continue reading Defensive Security Podcast Episode 308 →

Alternate Data Streams: Adversary Defense Evasion and Detection Good Primer of alternate data streams and how they are abused, as well as how to detect and defend against ADS abuse. https://isc.sans.edu/diary/Alternate%20Data%20Streams%20%3F%20Adversary%20Defense%20Evasion%20and%20Detection%20%5BGuest%20Diary%5D/31990 Connectwise Breach Affects ScreenConnect Customers Connectwise s ScreenConnect solution was compromised, leading to attacks against a small number of customers. This is yet another example of how attackers are taking advantage of remote access solutions. https://www.connectwise.com/company/trust/advisories Mark Your Calendar: APT41 Innovative Tactics Google detected attacks leveraging Google s calendar solution as a command and control channel. https://cloud.google.com/blog/topics/threat-intelligence/apt41-innovative-tactics Webs of Deception: Using the SANS ICS Kill Chain to Flip the Advantage to the Defender Defending a small Industrial Control System (ICS) against sophisticated threats can seem futile. The resource disparity between small ICS defenders and sophisticated attackers poses a significant security challenge. https://www.sans.edu/cyber-research/webs-deception-using-sans-ics-kill-chain-flip-advantage-defender/

Send us a textFrom Wine Tastings to IT Nation Leadership!

Send us a textCyber Defense Meets Leadership Mastery!

Send us a textFrom Military Mindset to MSP Mastery! ⚙️