AI Adoption Widens Operational Divide: Peter Kujawa on Service Leadership Index Data

[00:00:13] For six straight years, best-in-class MSPs have sustained 19% adjusted EBITDA or better. Not two years, not four, six. That is the longest run of sustained profitability in this industry's recorded history. And the 2026 budget data we're looking at today shows the industry is about to attempt something that's never been done before. 34% more profit dollars on only 10% more revenue.

[00:00:42] The report's own language calls that ambitious. And the budget attainment data from the last two years suggests it's even harder than it sounds. The question isn't whether the run is real. It definitely is. The question is what separates the firms that extend it from the ones who finally hit the wall. And this year, the data has a very specific answer.

[00:01:06] Welcome to the Business of Tech Lounge. This is where we break down what's changing in the IT services market, what it means for providers and vendors, and what to actually do about it. If you're running or supporting an MSP, this is about making sense of the environment you're operating in, not just the headlines. Now to make this conversation possible, a message from our sponsor. Here's what I'm hearing from MSP owners in the communities I watch every week.

[00:02:05] A cleaner, more profitable operation, not just more tech. That's exactly what PAX8 is built for. Check them out at PAX8.com. That's PAX, the number eight, dot com. My guest today runs the data operation that makes this conversation possible. Peter Kujawa is the EVP and General Manager of Service Leadership and IT Nation at ConnectWise.

[00:02:29] He oversees the Service Leadership Index, the industry's leading financial and operational benchmark for IT solution providers, now in its 21st year. The SLI tracks MSP performance across 104 countries, giving owners and executives an objective view into what separates the top quartile from everyone else. Peter, you're a frequent flyer. Welcome back to the show. Always great to see you, Dave. Thanks for having me on again.

[00:02:55] Likewise. You know what? It's Christmas for me. This is all your profitability report is always one of the most fun things that I get a chance to dig into. So I appreciate you being generous with your time. Now I got to start with this headline, because the data really deserves a moment before we pick it all apart. The index covers 25 years of data, six years of 19% adjusted EBITDA for the best in class. MSP revenue rebounded in 2025, up 9.6% after a softer 2024.

[00:03:25] And valuations are at near record highs, enterprise value up roughly 15% year over year. And then I dug into the 2026 budget numbers. The average MSP is targeting 34% more profit dollars on only 10.6% revenue growth. You called it ambitious in the report. The budget attainment history makes it even harder. If we look at the history there, 2023 MSP's over attained at 131% of profit budget.

[00:03:55] 2024 they hit 81.9%. Last year, 89.4%. The trend is going into the wrong direction to hit that aggressive budget year. So talk to me about this six year run. Has there ever been a six year run like this? No, we, the last six years in the industry have been, I've referred to it many times as a golden age. I've heard others using that term.

[00:04:22] I'd like to claim that it was mine, but who knows. The regardless going back to 2020. It's, it's really, there's a couple of things that are really remarkable about it. Number one is I remember I was running an MSP when COVID hit early days of COVID March 2020. We were all sitting around wondering if there would be any customers left to support what our industry survived this thing.

[00:04:48] And I know VARs were going through that all over the world. MSP's were, and it was really scary time. And to look back now in 2026 and see the best six year run ever of profitability. And it's not just for the best in class. The best in class certainly are outperforming everybody. The, the, but the median has made more money in the last six years. The bottom quartile has lost less money in the last six years.

[00:05:17] But if you look at that chart, Dave, it, what it shows you is how much the extra work that goes into going from median to best in class, how much that pays off as our data shows on, on one of the charts in the report that on average, the best in class has outperformed the median by 2.5 X. And that number goes back way past the six years, but it's certainly been the case there. So if you're an MSP that's watching this, that you think, Hey, I'm doing okay. I'm a median.

[00:05:47] It's worth it to get into best in class. It's, it's not a little bit of an improvement in profitability. It's 2.5 X on average. Which is no small amount of money. We're talking about real thing. Let's, let's talk, you know, that, that all seems roses. Do you, is when you're looking at the data and kind of indicators, like do you think this year is. Is more likely to extend it or revert to mean like, do you have a sense of performance of the current year. Well, you brought up the budgets and the budget data is always interesting for us.

[00:06:16] Um, we always like to look at, we compare in the report past budgets to actual performance and the variance as you talked about. And it gives you a good sense of year to year where are MSP seeing the landscape for growth? What are they predicting? Are they in an optimistic mood at the end of the year or maybe a negative mood? Uh, this year, as you said, they're predicting pretty modest revenue growth.

[00:06:41] Um, a little under where we, uh, where we're trending for managed service revenue growth. Um, but if you look at total revenue growth, uh, pretty modest. So a couple of years ago, everybody was coming off of COVID and the highs that we had for growth there and maybe overshot in their budgets, the projections for revenue growth. This year, I think there's a lot more negativity amongst MSPs about revenue growth.

[00:07:06] On average managed services we're seeing grow organically about 11.4%. So, uh, product is down other revenue line items are down, but managed service revenue is, is doing, doing well. It's right in the historical range. So, um, MSPs shouldn't be negative right now. We'll get to the AI opportunity in a minute. Uh, what's interesting in this year's forecast is as you said, they're forecasting this massive uplift on profitability, 34%.

[00:07:35] Well, how do you get there? Well, there's a couple of inputs that you would need to see happen for that to materialize. Number one is you'd need to see gross margin percentage go way up on product and on service. Uh, will it go up? Yeah, it, it should go up a little bit this year. And we'll talk about AI in a bit. Um, but certainly not enough to, uh, to drive that.

[00:07:57] The other way it gets there, and this is what you see in the budget is if you increase gross margin dollars and you increase SG&A at 50% of the rate of that increase of gross margin dollars or less, you start to drive disproportionate profit improvement. So what you see in that budget forecast is they're forecasting pretty modest revenue growth, but they're forecasting really controlling the growth of SG&A.

[00:08:25] And so, and, and to a level that we haven't seen. Um, uh, and the report shows it over the last, the last several years. So what's behind that? I think a bit of exuberance. Um, I think we use the term, uh, maybe overly ambitious and I don't think crazy sounded professional in our, uh, report, but you know, budgeting best practices are important for MSPs.

[00:08:51] I think the private equity guys are really good at budgeting the non-private equity guys. It's a little more of a skill that they still need to learn and get better at because it drives a lot of decisions throughout the course of the year. But, um, it's a overall, it's something that the average MSP needs to get a little bit better at. So will we see 34% improvement and how's this year going to look to answer your, your final question?

[00:09:15] Uh, I don't think we're going to see 34% improvement, but even if we don't see that level of improvement, it should be a good year. We should see profitability improve. Well, I want to dwell for a minute on this budget attainment trend. Cause it did worry me a little bit. Like if I look at the, you know, 2023 blood over attained by 31%, 2024 misses by 20 points, 2025 still misses by 10. I kind of want to get your sense. Is that a management discipline problem or a forecasting problem? I think it's a combination of both. Okay.

[00:09:45] What we see in our data is that, uh, if you overperform your revenue target, uh, you're typically going to, going to significantly outperform your EBITDA target. So, and it shows, there's a chart in there that shows best in class, median and bottom quartile. Best in class, I think came in at about 106% of their revenue forecast and about 112% of their EBITDA target.

[00:10:09] Uh, bottom quartile came in and at about 88, I think, percent of their revenue target. And they came in at like 65 or 70% of their EBITDA target. So those, those two things are both, both work in conjunction. So you don't want to be overly optimistic on your growth targets. You want to, we did a session last week at PAX 8 beyond on this. Um, you want to make sure that you're really focused in on a realistic look at your, at your growth targets.

[00:10:39] Um, you want to make sure that you're, at your growth potential and that you're budgeting off of that. So if the industry is growing, for example, 12%, um, which historically is about the case for managed services. And you put in that you're going to grow 20%. Well, first of all, are you factoring attrition into your number? Uh, best in class attrition is about 5% a year, give or take bottom quartiles, about 10. So depending on where you are as an MSP, you need to outsell that to get to that growth number.

[00:11:08] So are you, are you factoring that in? Are you really looking at this thing right now? If you are, what are you going to do different? That's going to drive your growth up that, that much faster than the industry average. Maybe you added a couple of sales reps last summer and they're finally starting to really click and produce. Um, maybe there's some other reason if there is great, but if there's not, then it's just a prayer.

[00:11:32] Uh, so it's important to be realistic and the budget, uh, budget based on reality of the industry, your historic growth, factoring and churn, et cetera. Um, and it's really important because if you, if you come up with a wildly optimistic budget, you're going to make other decisions based on that. And you're going to be incurring expense that you're not going to be able to afford that SG&A control of, uh, that we talked about is really, really important.

[00:11:59] So how do you know when you can add more back office support and some of the things that you need to add as you grow your business that we talk about in the report. So, uh, it really goes, goes, goes together. The financial forecasting piece is something that definitely the PE guys are better at. They're looking every month and certainly every quarter and saying, how are we doing? Are we on track? Are we not on track? And if we're not on track, they're going to take action a lot earlier in the year to course correct.

[00:12:26] So those things all are part of a budgeting and financial management model that we tend to see. That's one of the reasons PE tends to outperform on profitability because of that as much as anything else. Gotcha. Now you eight minutes in, you had said AI. I want to dig a little bit in there because this year you've got your first attempt to measure what AI is actually doing to the financials. The 2026 report has the automation index. Walk me through that. Like what are you measuring?

[00:12:55] And how did you build it this way? And what are the operational indicators and the financial outcomes that you're measuring here? Yeah. The automation index was born out of us watching over a period of quarters at different KPIs that we already capture. And really looking to say, is this the KPI that's going to tell the story about automation occurring in the business?

[00:13:19] Is this if this AI is moving to a significant, if this KPI is moving to a significant degree, does it tell us that this business is successfully implementing AI? So we started with some of our obvious ones.

[00:13:35] We looked at service multiple of wages and said, well, if a business is getting much more efficient, if an MSP is growing efficiency in their service factory and they are able to service more dollars of revenue with proportionately fewer dollars of wages, it'll show up in service multiple wages. And yeah, it will. That's the number one place that I would look.

[00:13:59] But as we looked deeper, there were there were other KPIs that we captured that also were really important to look at revenue per employee for the whole organization. Why is that important? Well, because you don't just have service people. You have salespeople, finance people, others that should be benefiting from AI if you're implementing it throughout your business. Service gross margin. Why does that matter? Well, because there is a cost of the tools. AI is not free.

[00:14:27] And as you're purchasing AI tools and adding them into your stack to deliver services, you need to make sure that you're out. The savings that you're getting from your labor is outperforming what you're spending. The good news is there on average, about 80, 75 to 80% of cost of goods for managed services is people cost labor and only 20 to 25% is tools.

[00:14:52] So I can significantly increase the percent or cost of what I'm spending on tools if I'm bringing down my labor costs 15, 20, 25%. The math is really, really favorable. In fact, we're already starting to see evidence of that. So those three are what we call outcome based. So those are ones that are going to look at if I'm doing the right things, if I'm building automation in my business and AI, where's it going to show up from an outcome standpoint?

[00:15:20] We also have three other operational metrics that we're including in the automation index. One of those is endpoints per engineer. That's a pure play measure of how much my service team can flex up in terms of what they're able to support. There's no tool cost in that. There's no revenue in that.

[00:15:44] There's nothing factored in other than how many endpoints is my team able to support. Great measure of AI. We're looking at hours per ticket. We're looking at other operational inputs that are also going to be pure play measurements of how efficient we are.

[00:16:06] So what we did was we took the inputs that we determined all showed various different things about AI implementation within the MSP. We built them into a single KPI and we weighted various inputs on either 20 or 15% of the weighting. So we are building that into our dashboard.

[00:16:29] So anybody who benchmarks with us and then puts their ops data will see this starting in Q3 and they'll see an eight quarter trending look at it. So it'll give them a really good ability to look at and see how am I comparing to best in class overall and how am I comparing in each of the six inputs on to best in class. So we think it'll be a lot of fun to watch this over the next couple of years. And and we also may make some adjustments to it.

[00:16:56] There may be some KPIs that we're not capturing today that start to show up that we may need to add to this as we go forward. As you know, we're in the very early innings of this thing with AI. You clearly we're cut from the same cloth because both of us are thinking this will be great fun to measure over the next few years. If you've got a question watching this live, throw it in the chat and I'll bring it online.

[00:17:18] But but the one that really struck me, Peter, that I wanted to think about here was I dug into bottom quartile firms have seen zero improvement in their service multiple of wages over eight quarters. I mean, zero. So the theory there is if AI is supposed to be a great equalizer, I can make an argument. Why is it doing the opposite? Widening the gap instead of closing it? Like, do you have a sense of what's going on there? Yeah. Bottom quartile folks will do bottom quartile stuff. OK.

[00:17:45] So it's no different, Dave, than what we've seen over the past 10 years in terms of other tools bringing efficiency gains. The opportunity for efficiency gains and the opportunity for improvement in service multiple of wages and gross margin, all these things, does not translate to the guarantee of improvement in all of these things. You still have to do the work. You still have to make the right decisions in your business.

[00:18:12] So, for example, if I'm if I'm a service manager right now and I'm closely running my service operation to run to a goal on service multiple of wages, I'm going to have a great understanding of the benefit of adding more service service labor or service revenue without adding more service wages. So how does that translate into AI?

[00:18:38] Well, if I'm at, let's say, a three on service multiple of wages and my goal is to get it up to a 3.5, I'm going to look at AI and say, great, I'm using these tools. I'm getting all of these efficiency gains in my dispatch operation and my level one tax. Let's say I'm getting 30 to 40 percent efficiency gains in my level one tax, which is certainly realistic these days.

[00:19:03] Well, I should be adjusting how much revenue I can bring into to my team without having to add another person. If I'm increasing my target on service multiple of wages, I know what that number looks like. I'm going to need to add 500,000 of new revenue before I add another person. Maybe before it would have been 300,000 of revenue. The point is, I'm going to understand my metrics.

[00:19:28] I'm going to understand the goals that I'm setting and I'm going to manage my business to it. The bottom quartile folks are going to do a few different things wrong. Number one is they don't typically have targets that they are setting, nor many times do they fully understand what levers to pull to move the needle on those targets. So they're going to purchase the tool.

[00:19:51] They're going to potentially get some efficiency gains from it, but they're going to continue to add people based on the demands of their tax or based on customers requesting them to have more tax or whatever reason that people will add more tax. So they're going to add them. They're going to if they add some more revenue, they're going to keep adding them at the same rate. If they lose somebody, they're going to backfill that person automatically rather than waiting a little bit to see if they even need to backfill that person. So they just run their businesses differently.

[00:20:21] The other thing that they're going to do differently is they're going to give away a lot of the margin savings in lower prices. The best in class is way, way more disciplined at charging a premium price, knowing that they're delivering a high quality service that they need to have sufficient profitability on to continue to deliver. The bottom quartile is going to look at this thing and say, hey, guys, we just drove 30% gains in our efficiency.

[00:20:49] Let's let's charge 30% less and we can sell way more customers. And that might sound ridiculous, but we have the data in the report showing the difference on gross margin on new customers brought in. The best in class today is bringing in new customers with higher QRRs, significantly higher, and they're bringing them in at about 53% gross margin. The bottom quartile are bringing in customers at about 40 or 41% gross margin.

[00:21:18] So that's already happening. So there's a lot of reasons why. But yeah, you're going to see the best in class service multiple wages. Historically, we targeted about a 2.5 or higher for that. Best in class has been hovering around a 2.7 for a while. Our last few quarters, we've seen that go up in the report. It shows it going up to 2.88, 2.9 ish. In Q1 of this year, they went up over three. Bottom quartile is still flat.

[00:21:46] So in a year, what's it going to be? I don't know. Best in class, probably 3.25, 3.3, 335, something like that. Bottom quartile will still be flat. Median hopefully will go up a little bit, but they'll go up slower than the best in class. Gotcha. Well, we're going to get into this because you found a couple of scale issues here too, but we'll get into that right after this message from our sponsor.

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[00:22:36] Everyone else, $399 at smbonlineconference.com. And I've got good news. We've even lowered the price for the event. You can get in now for $129 available at SMB Online Conference. And Peter is one of our speakers next week, so you'll get additional insights into that. Now, Peter, I'm dying to talk to you a little bit because the report also introduces some scale thresholds for the first time. Yeah.

[00:23:03] This is revenue bands where MSP economics break or improve. And I have to highlight that most dangerous band between, you know, $6 million to $10 million, where growth slows in that band, margins compress. What can you tell me a little bit about this new danger zone that you've been focusing in on? Yeah. Every year in the profitability report, we put some new special sections in. And these are ones that we just find interesting at the time.

[00:23:33] And so we talk about these things over the course of the year before the report comes out. And this is one we've been talking about for a while in the Evolve leadership team. And that is, we see MSPs come into Evolve. Typically, a lot of them come in around that $2 million to $4 million size, $2 million to $3 million. And yet we see certain MSPs that really do a great job of growing in a linear way.

[00:24:01] They continue forward. And we see those MSPs over a period of years grow up and mature and end up as 15, 20, $25 million MSPs. A lot of them maybe start doing some M&A or getting acquired. And then we see a lot of other MSPs where they'll get stuck at certain size thresholds. So our data says that a significant part of the industry is still under $1 million in revenue. We have a chart in there that shows the distribution of size ranges.

[00:24:31] So why is it that some MSPs stay stuck in this sub-million range? And so we came out with a benchmarking product late last year called Benchmarking Essentials that asks about 1 7th the questions. It also provides about 1 7th the KPIs back. But it's designed really for that sub-million dollar MSP to be able to start to see how their data compares and where they should be making some business decisions and start to try to teach them some of this terminology

[00:25:01] and help them over that hump because that million size seems to be a threshold that we had identified. The data says it is. So you get through that. You get to another size threshold. The business starts to improve. But about that 6 to 10 million range, that's a really tough one for a lot of MSPs. And a lot of MSPs stall out at that 4, 5, 6 million of revenue. And then their growth really slows. Their profitability takes a little bit of a hit.

[00:25:31] And they seem to kind of plateau out. If they make it out of that, that 10, another threshold is around 25 million. And so we have a section talking about all this and why this is the case. But the 6 to 10 specifically what we see is that's when a lot of MSPs need to make some significant investments in their leadership team. They probably at this point need to hire a sales manager.

[00:25:58] The owner's probably been running sales. Maybe they've added a sales rep or two by then. But now you need somebody who really knows how to run that team and really coach and lead those folks forward. You probably also, if you haven't added by then, you need somebody to run your finance team. So maybe a controller or VP of finance or somebody at that level. So you start to make these investments in the management capability of the business.

[00:26:26] The number one thing required to do that though is the owner needs to let go. At that stage, if the owner does not let go of some of those business tasks on a day-to-day basis, the owner is going to be the choke point in that business growing. So up until then, the owner's been able to be involved in a little bit of everything. But you get to that point where if the owner stays involved in a little bit of everything, nothing gets done.

[00:26:52] And so the business, so what we see in our data is the best-in-class percentage pulls back and that's 6 to 10 and goes down to median. It doesn't go way down. It goes from 25-6 down to 21-3 that are in best-in-class top quartile. And that's because they're still doing well, but they're making some expensive investments in their leadership team. But they do that. They get to that 10 million.

[00:27:19] Now they've added a lot of capability to scale the business up. And we see that in the data. Those businesses then scale up really nicely over the next couple of size thresholds. It's funny. We've got a bunch of material in the Small Biz Thoughts community specifically about letting go and delegating and process-oriented because of exactly that issue. Now, I want to give the independent owner some really good news here because the PE narrative really does seem to dominate sometimes.

[00:27:45] When we dug into this data, the best-in-class averaged 23.5% EBITDA in 2025 and the PE-backed average was 21.3%. So tell me a little bit about how you think about this framing of the broad industry being able to achieve best-in-class better, PE being a little bit better. Is that just sort of giving a lane for high-performing independent operators can achieve on their own? Or is there other lessons we should take from that?

[00:28:13] Yeah, I wouldn't focus on that so much because that one sample does include PE as well. Sure. Generally, the PE folks on average outperform the non-PE folks on EBITDA by about three to five points. That's mainly, as I said earlier, I think that's largely because of some of the financial discipline. They're much better at budgeting, financial forecasting, course-correcting.

[00:28:39] And they also tie a huge chunk of their executive team's bonus every year to achievement of those EBITDA goals, some of which can be fairly ambitious. So, you know, if you have 20, 25, 30% of your annual pay tied to hitting that EBITDA target, you're going to do what you need to do over the course of the year to hit it. And we tend to see that happen.

[00:29:01] However, what I would tell every MSP, PE or non-PE, is that our data shows that at every size range, there are some MSPs doing extremely well. There are some doing mediocre and there are some that are really struggling.

[00:29:20] And that is whether we have a slide in there that shows sub-million of revenue MSPs, one to three, three to six, six to ten, ten to 15, 15 to 25, 25 to 50 and 50 plus million of revenue. And oftentimes when I talk to non-PE, typically the smaller MSPs, they're convinced that there's a size range where life gets really easy.

[00:29:44] Like the PE guys have all this sales team scale and back office capability. And if only if I had access to that, my life would be so easy and I'd be so profitable. It's not true. At every size range, it's one of the great myths in our industry. And at every size range, there are some that are doing really well and some that are struggling. And that's the case for even the really big companies. Same thing goes with growth rates.

[00:30:12] If you strip away the acquisitions and look at organic growth rates, the PE guys are paying similar customer acquisition costs. They're struggling to add customers just like the non-PE folks. So the differentiation is really it's it's not one that the PE folks should be overly cocky about and the non-PE folks should be overly worried about, per se.

[00:30:39] That being said, there is an advantage as we go forward, I think, with AI that the private equity folks right now are investing tremendous amounts of their gross margin on a percentage basis relative to the non-PE folks on R&D and scaling out their their AI practices, both internally and externally for their customers. So we are starting to see those folks introduce some pretty interesting offerings to their customers.

[00:31:09] And so we'll see how this plays out. But historically, there has not been an advantage to running the business based on size. There are certainly some advantages, but there's also a whole bunch of disadvantages at every size range. Well, I want to make sure I want to be respectful of your time with my last little bit here. I want to get some practical advice. The report says that the management is a skill, right? And that it's learnable.

[00:31:33] So I want to give those operators that are kind of in the middle of the range, the OML 3.0, like what are the what is the fastest best path, particularly for an independent firm that doesn't have P.E. Capital to go from like an OML 3 to best in class? Like what's the best set of moves? Well, first of all, you need to really understand where you are before you set your target on weight loss.

[00:31:56] You better step on a scale. So the the so if I'm an MSP today trying to understand what are the things I should be doing to improve my results? I'm going to start to use SLEEK and which is our operational maturity level evaluation tool, which also provides a huge amount of guidance to the MSP in terms of what motions are going to make the most impact on them getting better.

[00:32:23] I'm also going to start to benchmark. The best way to do all of that is to join an evolve group because that they use 100% of our evolve members use those tools. And so they have a really good understanding of what their operational maturity level is and where they stand on all these KPIs. But so I'm going to I'm going to learn it. I'm going to understand what it is that I need to improve in my business.

[00:32:48] And I'm going to focus in on two to four things that I'm going to do fundamentally different each quarter. And by the end of the year, I will have improved significantly in eight to 16 things. You can't do it all at once. You have to pick some things and sequentially move. So what would some of those things be typically? Well, number one is do I have a value creation strategy? And what I mean by that is what am I trying to what what am I trying to build this business into over the next five to ten years?

[00:33:18] Typically, I would advise picking five years, but say, look at the business today. What's the business valuation today and what would it be worth in five years or what do I want it to be worth? And what do I need to do between now and then to get it there? The really high operational maturity level firms we work with. This is the single biggest differentiator. They're not just going month to month and year to year hoping to get better results. They were really clear understanding of what they're trying to build to.

[00:33:48] And at the end of it doesn't mean they have to sell. They have a goal that five years from now, I want the business to be worth this. And in five years, I'm going to keep going. I'm going to set another goal for the next five years. And I'm going to make decisions over the next five years tied to my target customer profile, my my sales growth, my profitability, all these different things that are going to impact the how effectively run my businesses.

[00:34:16] So, a understand where you are today, really have a clear eye view of it. And then B, do the work that you need to and make sure you're getting advice from sources that are giving you good advice and helping you to move forward. Peter, I you're seeing it from my playbook. I really appreciate this. We could go for another hour, but I know we've run out of some time here. Where can people find you and get in touch and continue the conversation and where can they find the report?

[00:34:45] Well, they can find the I'm on LinkedIn. I would encourage anybody to reach out, connect with me. We post a fair amount of stuff on LinkedIn that when I see something that I think is interesting and get a lot of messages asking questions on our stuff there. Also, go to connectwise.com. You'll find service leadership and evolve on connectwise.com. You'll also find a lot of information on predictive IT.

[00:35:11] Connectwise, Dave, as you saw last week, launched the new platform with embedded AI in it. And this is really designed to help take MSPs forward over the next few years on this massive transformation that we're starting to see and do it in a way that embeds it in their stack much easier to use. And it will evolve a lot over the next 12 to 18 months in terms of the capabilities that it will bring to MSPs.

[00:35:38] So you can find all of that at connectwise.com, including our stuff. And if you're interested more in the predictive IT piece, we talked about it on multiple episodes of the Business of Tech last week, as well as the Small Biz Thoughts newsletter. You can get the podcast, of course, at businessof.tech and you can get the newsletter at smallbizthoughts.com. Peter, this is the kind of data that really changes how you run the business. Really appreciate you joining me today.

[00:36:01] Dave, I'm always happy to talk to anybody who reads the 330 page data-filled report and has as much fun with it as you do. So anytime you want me on, I'm here for you. Well, I really appreciate that. Yes, I do read the reports. I spent a lot of time digging in, literally cross-referencing data to try and make it happen. Thanks so much for joining me. And I want to thank our sponsors for making the Business of Tech Lounge possible.

[00:36:28] ABC Solutions, if you're running an MSP and struggling to get clean financial visibility, things like profitability by client or service line performance or just accurate books necessary to deliver service leadership, they focus specifically on accounting for managed service providers and IT firms. They're at abcsolvesit.com.

[00:36:49] And Rhythms, if connectivity reliability is still a constraint, especially in edge environments or for distributed teams, Rhythms delivers 5G solutions designed for MSP use cases where uptime and coverage actually matter. More on them at rythmz.com. And if you want to go deeper on the business of running an MSP, not just the technology, but the pricing, the positioning, the business model, that's what the Business of Tech Plus is for.

[00:37:16] Visit us at businessof.tech slash plus. If you're watching the recorded version, you got a question or a take, send it in at question at MSP radio dot com or put it in the comments below on YouTube. We read all of them. Thanks for watching. I'm Dave Sobel and I will see you next time.

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