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Podcast: Business of Tech: Daily 10-Minute IT Services Insights
Episode: MSPs Face Profitability Challenges as 18% Operate at a Loss; OpenAI and CrowdStrike Innovate AI
Description: Managed service providers (MSPs) are facing significant challenges as recent data reveals that 18% are operating at a loss, a concerning increase from 14% in the previous quarter. While overall managed service revenue growth has slowed to just 1%, profitability remains relatively high, with an average EBITDA of 11.1%. However, the decline in services revenue, particularly among value-added resellers (VARs), indicates a potential shift in client spending habits, raising questions about the sustainability of traditional service contracts. This trend suggests that clients may be reverting to transactional IT spending rather than fully managed services.In the realm of artificial intelligence (AI...