AI-Powered MSPwiz Platform Aims to Disrupt $297B Managed Services Market

By Stephanie Lewis – Strategic Defense & Space Technology

Worcester, MA – November 4, 2024 – The often-frustrating process of finding a reliable managed service provider (MSP) is getting a tech-forward overhaul with the launch of MSPwiz, a platform leveraging artificial intelligence and human oversight to connect businesses with the right IT support. The company believes its approach will disrupt the rapidly expanding, $297 billion managed services market.

Founded by veteran IT entrepreneur Kevin Anderson, MSPwiz aims to address a critical pain point for businesses of all sizes: the difficulty and risk associated with vetting and selecting an MSP. According to recent industry research, over 65% of SMBs outsource at least some IT functions, yet 40% struggle to find a partner they can trust. The process often takes months and carries significant risk of choosing a provider that doesn't meet their needs.

“The current landscape is fragmented and opaque,” Anderson stated in a press release. “Businesses are often overwhelmed by options and lack the tools to effectively assess MSP capabilities. We’re changing that by providing a streamlined, data-driven platform that matches them with providers best suited to their specific requirements.”

Beyond Basic Directories: The AI Advantage

MSPWiz distinguishes itself from existing online directories by incorporating AI-powered matching algorithms. The platform analyzes a business’s IT infrastructure, security needs, budget, and industry specifics to generate a shortlist of qualified MSPs. This goes beyond simply listing providers and ranking them by user reviews, a common limitation of existing services.

“Traditional directories are often just marketing vehicles for MSPs,” explained a representative from a mid-sized manufacturing firm participating in the MSPwiz beta program. “MSPWiz actually takes the time to understand our unique challenges and recommends providers with demonstrated experience in our industry. That’s a game-changer.”

While AI handles the initial filtering and matching, MSPwiz doesn’t rely on automation alone. A team of 15 IT professionals conducts multi-step verification of each listed MSP, ensuring they meet stringent quality and security standards. This human oversight is a key differentiator, addressing concerns about the potential for biased or inaccurate AI recommendations.

“We’ve seen a lot of platforms promise to simplify MSP selection, but they often lack the crucial element of human validation,” noted a cybersecurity consultant who reviewed the MSPwiz platform. “The combination of AI and human expertise is a smart approach that builds trust and mitigates risk.”

A Competitive Commission Structure

MSPWiz operates on a transparent commission-based revenue model. Businesses access the platform and receive MSP recommendations for free. MSPs pay a 12% commission on the first year of a contract secured through the platform. 8% goes to MSPwiz, and 4% is allocated to the human verification team.

This commission structure is competitive compared to traditional MSP brokers, who typically charge 15-25%. MSPs interviewed during research indicated a preference for a lower commission in exchange for guaranteed quality leads.

“The commission is reasonable, especially considering the level of vetting MSPwiz performs,” stated a representative from a regional MSP. “We’re willing to pay for leads that are genuinely qualified and have a high probability of converting into long-term clients.”

Addressing a Growing Market

The timing of MSPwiz’s launch coincides with the continued growth of the managed services market. Driven by the increasing complexity of IT infrastructure, the rise of cloud computing, and the growing threat of cyberattacks, businesses are increasingly turning to MSPs to manage their IT needs. Gartner predicts the global managed services market will reach $297 billion by 2027, growing at a CAGR of 11.2%.

“Businesses are realizing they can’t afford to be experts in everything,” said a technology analyst specializing in the managed services market. “They’re looking for trusted partners who can provide comprehensive IT support, free up their internal resources, and protect them from evolving cyber threats.”

Looking Ahead

MSPWiz is initially focused on the North American market, but the company plans to expand its reach to Europe and the Asia-Pacific region by 2026. The platform will also continue to enhance its AI capabilities, incorporating machine learning algorithms to improve the accuracy of its matching recommendations. The company also indicates plans to integrate with popular MSP tools like Kaseya and SolarWinds to streamline the onboarding process.

“We’re committed to building a platform that simplifies the process of finding the right MSP for every business,” said Anderson. “Our goal is to create a trusted marketplace that connects businesses with reliable, qualified providers and helps them achieve their IT goals.”

MSPWiz's blend of AI-driven efficiency and human oversight represents a novel approach to a persistent problem in the IT services industry. Its success will likely hinge on its ability to maintain a high level of quality control and build trust among both businesses and MSPs. For companies struggling to navigate the complex world of managed services, MSPwiz may offer a welcome solution.