2025 Predictions from Julian Lee of eChannelNews and Rob Rae from Pax8

Send us Fan MailAnother great interview with channel leader, Rob Rae, Corporate Vice President of Community and Ecosystems, at Pax8. Rob shared his positive outlook for 2024, particularly in cybersecurity and AI, noting a trend among small and medium-sized businesses (SMBs) towards more strategic planning and budgeting in these areas. He emphasized the need for managed service providers (MSPs) to effectively monetize AI technologies, while Julian highlighted the importance of MSPs becoming knowledgeable about AI to confidently address client inquiries. Both acknowledged that being a reliable source of information will be essential for MSPs as the industry evolves.The managed services sector is experiencing significant growth, with Canalys reporting increases in Professional Services Automation (PSA) and Remote Monitoring and Management (RMM) technologies. This growth is driven by rising demand from SMBs, prompting MSPs to adopt automation and AI to improve service delivery and scalability. However, the industry faces challenges in attracting and retaining skilled talent, as new workforce entrants often lack essential technical troubleshooting skills. Additionally, there is a noticeable shift towards newer PSA solutions, indicating a dynamic market landscape.Concerns about outages and downtime, even among major providers like Microsoft, have led some MSPs to reconsider cloud solutions in favor of on-premises systems, reflecting the ongoing evolution in the IT landscape, and highlighting the complexities of transitioning to new technologies while addressing sustainability challenges posed by cloud data centers.The conversation also touched on generational shifts in consumer behavior, particularly the influence of Gen Z on the workforce and purchasing decisions. Rob noted that Gen Z’s preferences for online shopping and engagement differ from previous generations, and they emphasized the need for MSPs to adapt their marketing strategies accordingly.Stay tuned for more on Pax8 in the upcoming months.