MSPs are no longer debating whether growth is happening. They’re talking about how much harder it is to get there. The latest Kaseya data backs that up. About 71% say winning new customers is their biggest challenge, and even when they do, the deals are smaller. Customers spending over $25,000 a year have dropped from 75% to 41%. So it’s not one big win but a lot of smaller deals, each taking more time and proof to close. AI is part of the conversation too, but in a slightly messy way. Around 48% of MSPs say clients want AI and automation, yet only 13% are actually making meaningful revenue from it. That gap says a lot. Everyone knows it matters, but most are still figuring out how to turn it into something clients will pay for. And, security keeps doing its job. About 71% of MSPs report growth in cybersecurity revenue, which is why it still anchors the business. When things get uncertain, clients fall back on what they know they need.What this all comes down to is pretty simple. The market feels tighter. Buyers are more careful, competition is higher, and MSPs have to work harder to show value. This is now more about services, and about proving, clearly, why any of it is worth paying for.
N-able's Cove DRaaS is a recurring revenue play for MSPs: N-able’s update to N-able Cove Data Protection shifts the DR conversation for MSPs from infrastructure to service design. By introducing a co-managed DRaaS model with predictable pricing and no hardware footprint, it removes two persistent friction points: upfront capex and the operational overhead of maintaining recovery environments. That matters in a market where MSPs have typically relied on appliance-heavy approaches from vendors like Kaseya (Datto) or custom builds on Veeam Software. The real impact is on margins and positioning. DR shifts from a reactive safety net to a structured, recurring revenue service that can be packaged, tiered, and sold upstream. This makes it easier for MSPs to offer the same DR service across all customers while improving margins, especially as clients want predictable costs and simpler pricing.NWN expands Palo Alto Networks Alliance: NWN is turning its Palo Alto Networks relationship into a more operational managed service play. The company is adding Prisma Access monitoring into its Experience Management Platform to give customers and service teams more consistent visibility across secure access environments, with a clear focus on reducing complexity and improving response workflows. The move looks especially relevant for large enterprises, public sector, and regulated organizations that need tighter control over uptime, compliance, and hybrid connectivity. In practical terms, NWN is packaging secure access less as a one-time deployment and more as an ongoing managed service built around monitoring, visibility, and operational readiness.Microsoft expands Copilot for all CSP promotion: Microsoft’s update to Microsoft Copilot for All CSP promotions makes it easier for partners to move customers from small pilots to broader deployments by expanding who qualifies for the 30% and 40% discounts through June 30, 2026. For CSPs, this is about unlocking deals that were previously stuck and increasing the overall size of Copilot engagements. Adoption has been uneven across SMB and mid-market customers, so this wider eligibility helps bring more accounts into the funnel. The real upside for MSPs sits in the services around it, like readiness assessments, user training, and change management, where they can actually build margin rather than relying on licensing alone.Fleet launches partner program: Fleet has launched its first partner program and says it is moving to a 100 percent channel sales model, with reseller and services tracks designed to bring more partners into device management deals. For MSPs, the move is relevant because Fleet is not just looking for resale reach. It wants partners to handle implementation, deployment, support and managed services around its cross-platform device management technology. That creates an opening for service providers that already manage mixed endpoint environments and want to build recurring revenue around compliance, automation and day-to-day device operations.
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This Week's Tech, Channel, and MSP News
TD SYNNEX expands AI infrastructure as a Service Portfolio: TD SYNNEX has expanded its AI infrastructure-as-a-service portfolio by adding dedicated NVIDIA HGX B300 clusters on Nebius AI Cloud, a move aimed at giving partners more predictable access to high-performance GPU capacity for enterprise AI workloads. The company said the offering is designed to help partners move customer projects from experimentation into production by removing a common infrastructure bottleneck around compute availability. For channel partners, the update opens a path to package enterprise AI infrastructure, software and services together, while TD SYNNEX manages commercialization and Nebius operates the underlying cloud environment.N-able's Cove DRaaS is a recurring revenue play for MSPs: N-able’s update to N-able Cove Data Protection shifts the DR conversation for MSPs from infrastructure to service design. By introducing a co-managed DRaaS model with predictable pricing and no hardware footprint, it removes two persistent friction points: upfront capex and the operational overhead of maintaining recovery environments. That matters in a market where MSPs have typically relied on appliance-heavy approaches from vendors like Kaseya (Datto) or custom builds on Veeam Software. The real impact is on margins and positioning. DR shifts from a reactive safety net to a structured, recurring revenue service that can be packaged, tiered, and sold upstream. This makes it easier for MSPs to offer the same DR service across all customers while improving margins, especially as clients want predictable costs and simpler pricing.NWN expands Palo Alto Networks Alliance: NWN is turning its Palo Alto Networks relationship into a more operational managed service play. The company is adding Prisma Access monitoring into its Experience Management Platform to give customers and service teams more consistent visibility across secure access environments, with a clear focus on reducing complexity and improving response workflows. The move looks especially relevant for large enterprises, public sector, and regulated organizations that need tighter control over uptime, compliance, and hybrid connectivity. In practical terms, NWN is packaging secure access less as a one-time deployment and more as an ongoing managed service built around monitoring, visibility, and operational readiness.Microsoft expands Copilot for all CSP promotion: Microsoft’s update to Microsoft Copilot for All CSP promotions makes it easier for partners to move customers from small pilots to broader deployments by expanding who qualifies for the 30% and 40% discounts through June 30, 2026. For CSPs, this is about unlocking deals that were previously stuck and increasing the overall size of Copilot engagements. Adoption has been uneven across SMB and mid-market customers, so this wider eligibility helps bring more accounts into the funnel. The real upside for MSPs sits in the services around it, like readiness assessments, user training, and change management, where they can actually build margin rather than relying on licensing alone.Fleet launches partner program: Fleet has launched its first partner program and says it is moving to a 100 percent channel sales model, with reseller and services tracks designed to bring more partners into device management deals. For MSPs, the move is relevant because Fleet is not just looking for resale reach. It wants partners to handle implementation, deployment, support and managed services around its cross-platform device management technology. That creates an opening for service providers that already manage mixed endpoint environments and want to build recurring revenue around compliance, automation and day-to-day device operations.
