MSPs Are Demanding More From Their Vendors: How to Adapt and Thrive

Lately, I’ve had numerous conversations with Managed Service Providers (MSPs) and vendors, and one thing is clear: MSPs are no longer willing to settle for the status quo. They’re not just looking for a vendor who sells them a product. They want a partner who genuinely cares about their success, someone who is invested in their growth and future.

In fact, I’ve seen MSPs move from one vendor to another, not just for better solutions but for the vendors that truly take the time to understand their unique challenges. They’re seeking vendors who will walk with them, side by side, and contribute to their success—not just in words, but in action. If you’re not that kind of partner, you might lose your MSPs to someone who is.

A Shift from Transactional to Strategic Partnerships

I remember one conversation vividly. A vendor in the cybersecurity space was frustrated. They had a good product, but their relationships with MSPs felt shallow, purely transactional. And that’s not what they wanted. They wanted to build something deeper, something that could stand the test of time.

We started using the MSP Business Evaluator with their partners, and something incredible happened. Instead of just selling their solution, they began offering real insights into their MSPs’ businesses. They helped one partner, who was struggling with client retention, identify the gaps in their service. The result? They didn’t just secure another contract—they earned the MSP’s trust. Now, that vendor is seen as a partner in growth, not just a product provider.

Supporting MSP Growth: The Secret to Mutual Success

Another story sticks out in my mind. An MSP in the Midwest was desperate to expand into cloud services but didn’t know where to begin. They were overwhelmed and unsure of what steps to take. When their vendor stepped in with the MSP Business Accelerator, everything changed.

The Accelerator gave them a clear blueprint for growth, tailored to their specific needs. In less than six months, the MSP increased their recurring revenue by 15%. They didn’t just expand—they thrived. And do you know what they said about the vendor who helped them? “They’re not just selling us a product; they’re helping us build our future.”

This is the kind of relationship that MSPs crave. It’s the kind of support that transforms a vendor from just another name on a contract to a true, trusted partner.

Reducing Attrition: Keeping MSPs and Their Customers Engaged

I’ve seen it time and time again: vendors lose MSP partners, and along with them, their customers. It’s heartbreaking, especially when it’s preventable. I recently spoke to a cloud vendor who was on the verge of losing one of their biggest MSPs. The MSP had been struggling—staff turnover, quality issues, and customer complaints were piling up. They felt like they were on the brink of collapse.

But instead of walking away, the vendor stepped in. They used the MSP Business Evaluator to help the MSP pinpoint their operational challenges. They didn’t just offer a product; they offered support. With coaching sessions through the Accelerator, the MSP was able to stabilize. That vendor didn’t just save a contract—they saved a business. And the loyalty that MSP feels now? It’s unshakable.

Navigating the Mergers and Acquisitions (M&A) Landscape

The M&A landscape in the MSP space is shifting fast. I’ve had conversations with vendors who’ve been blindsided—one day, their partner MSPs are thriving, and the next, they’ve been acquired by a competitor. It’s a gut punch, especially when there’s no warning.

But it doesn’t have to be this way. One vendor I worked with used the MSP Business Evaluator to get early insight into one of their partners considering a sale. Instead of losing the MSP to a competitor, the vendor approached them with an acquisition offer. They didn’t just retain their partner—they expanded into a new region and solidified their position in the market.

It’s stories like these that remind me how critical it is to be proactive, to be the partner that’s always one step ahead.

Summary: How Vendors Can Thrive in the MSP Channel

If there’s one thing I’ve learned from these conversations, it’s this: MSPs are looking for more than just a product. They’re looking for someone who is truly invested in their growth and success. As a vendor, your ability to build real, strategic partnerships will define your future.

You need to:

• Shift from transactional to strategic partnerships that go beyond the sale.
• Support MSP growth by offering the tools, like the MSP Business Evaluator and Accelerator, that help them scale and thrive.
• Prevent attrition by being proactive, offering more than just a solution—offering guidance.
• Navigate the M&A landscape by staying ahead of potential acquisitions and acting before it’s too late.

By focusing on these areas and leveraging the MSP Business Evaluator and Accelerator, you can become the kind of partner MSPs will never want to leave.

Do you want to be the vendor that your MSP partners can count on? Start today by transforming your relationships into strategic partnerships that drive real growth, reduce attrition, and keep you ahead of the competition.

If you are an MSP and you are not receiving the benefits of the MSP Business Evaluator and Accelerator, ask your vendor about it, or get it for yourself here: https://bizadvisoryboard.com/business-evaluator/

About Paul Daigle

Paul Daigle is a seasoned expert with over 30 years of experience in business scaling strategies and growth acceleration across multiple industries, with a strong focus on IT Service Providers. Throughout his career, Paul has consistently delivered comprehensive tools and systems that empower businesses at every stage of their development, driving substantial value enhancement and sustained growth. With a proven track record of managing over $1 billion in assets, successfully raising capital for more than 130 organizations, and expertly guiding companies through the complexities of going public, Paul’s dedication to helping businesses reach their fullest potential is evident in every meticulously planned, executed, and continuously optimized strategy he develops.

Paul's extensive experience also includes serving on 12 public and private boards, where he has held the position of chairman on 7 occasions. His strategic insight and leadership have been instrumental in guiding organizations through critical phases of growth, acquisitions, turnaround scenarios, and public offerings, establishing him as a trusted partner in driving long-term business success.

Want to learn more? Call Paul at 407-461-0061. You can also connect with him on LinkedIn or schedule a meeting here: Schedule a 30-minute Free 1st Strategy Session or use the full URL here: https://bizadvisoryboard.bookafy.com/service/30-minute-Free-1st-strategy-session .