EP236 – The State of the IT Channel in 2025 with Greg Jones & Ian Luckett

We kicked off with a discussion on how the past 12 months have felt for MSPs, and Greg was quick to point out the odd paradox we’re facing. Despite global uncertainty, economic pressures, and geopolitical challenges, the MSP space is actually buoyant. Kaseya itself is growing significantly, and since around 98% of its revenue comes through MSPs, that tells us a lot about the health of the IT channel as a whole. However, while the numbers look good, the reality on the ground isn’t all rosy. Some MSPs are struggling with client churn, budget cuts, and shifting customer expectations. Greg stressed that agility is the superpower in today’s climate. Those MSPs who are able to pivot their message, adapt their offer, and align more closely with the behaviours and values of growth-focused clients are the ones staying ahead. 

What really struck a chord was the shift away from the technical ‘what’ of IT and towards the business ‘why’. Greg made it crystal clear that MSPs today need to go beyond just fixing stuff and start solving real business problems. The IT channel is evolving fast, and it’s not enough to simply respond to requests. Clients, particularly those who are scaling and innovating, want MSPs who bring ideas to the table. They want advisors who understand compliance, business process improvement, automation, and yes, even a bit of AI and machine learning where it makes sense. The standout point? Clients are now leaving MSPs not due to bad service, but because their current provider isn’t offering the services, tools, or strategic thinking that they actually need to move forward. That’s a wake-up call for all of us in the IT channel. 

We also talked about identifying the right clients. Not just by size or sector, but by mindset. Are they members of a professional body? Do they work with a business coach? Are they investing in growth? Or are they protecting a lifestyle? If it’s the latter, they may not be the right fit for an MSP wanting to scale. Understanding client behaviour, not just industry type, is a big step forward in smart prospecting. 

Another major thread that came up was the rise of co-managed IT and the impact of enterprise trends on the SME market. Greg explained that what happens at enterprise level today hits the SME space about 12 to 18 months later. Right now, we’re seeing more demand for compliance as a service, and the margins are strong – around 70% in some cases. The opportunity for MSPs to step into this space, particularly with business-grade solutions that simplify and automate, is huge. It’s not about flogging more tech. It’s about empowering clients to run smarter businesses. That’s what’s going to keep you relevant in the IT channel in 2025 and beyond. 

Greg also talked about how younger business leaders are coming through with entirely different expectations. They’re digital natives, want slicker experiences, and have no patience for clunky processes. They expect their MSP to operate like the apps and services they use every day. If you’re not adapting to that, you’ll get left behind. That includes offering flexible communication methods, making contracting simple, and thinking about how you serve clients from their point of view, not yours. 

One of my favourite parts of the chat was when Greg spoke about the importance of getting out of your comfort zone. That means attending your client’s industry events, not just IT shows. You’ve got to understand what’s going on in their world if you want to be more than a tech vendor. Greg’s example of “RoofCon” raised a chuckle, but the principle is serious – when you speak your client’s language, you earn their trust. 

We wrapped up with a look ahead, and while Greg couldn’t spill the beans on all of Kaseya’s upcoming announcements, it’s clear there’s a lot of innovation on the horizon. But the real excitement came when he talked about the rise in peer groups. Seeing MSPs come together, share knowledge, and improve not just their businesses but their lives – that’s what it’s all about. It’s a reminder that no MSP is perfect. There’s always someone ahead of you and always someone behind. So reach out, get help, and keep evolving. 

The IT channel is changing rapidly. If you’re an MSP owner and you’re still just selling IT support, you’re going to get overtaken. But if you pivot, listen to what your clients actually need, and start focusing on business outcomes, there’s a massive opportunity waiting for you.  

Connect with Greg Jones on LinkedIn and see what he’s up to by clicking HERE.   

Make sure to check out our Ultimate MSP Growth Guide HERE, and remember that the help is out there. You just have to go get it. 

Connect on LinkedIn HERE with Ian and also with Stuart by clicking this LINK 

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Until next time, look after yourself and I’ll catch up with you soon!