MSP Margins: Should You Still Resell Hardware and Software?

In this episode of the SMB Community Podcast, hosts Amy and James discuss the dynamics of reselling computer hardware and software for MSPs, emphasizing the importance of building trust with clients. They highlight recent changes in market leadership among PSA and RMM tools, with Kaseya overtaking ConnectWise. The conversation also covers major developments in the tech industry, such as the proliferation of data centers and chip manufacturing to support AI growth. Additionally, Amy announces a new class aimed at helping MSPs add AI management and security services to their offerings, underscoring the significant business opportunities in AI management. Chapter Markers: 00:00 Introduction and Welcome 00:51 Weather Woes and Personal Stories 03:29 MSP Question of the Week: Should MSPs Resell Hardware and Software? 04:29 Debate: The Role of MSPs in Selling Hardware 14:11 Big Players vs. Small Players in the MSP Market 15:20 TikTok and Tech Industry News 24:00 Microsoft Windows 10 End of Life 27:37 Upcoming AI Class for MSPs 31:10 Conclusion and Sign-Off News Articles: https://www.bbc.com/news/articles/cjde3p0rnjgo https://www.cnbc.com/2025/01/19/tsmc-confident-in-continued-chips-act-funding-under-trump-says-cfo.html Channel News: For the first time ever (dating back 29 years), ConnectWise has relinquished the #1 market share position to Kaseya. NinjaOne grew at 54.1% y/y and overtook N-able for the #3 market share position. Doubling in size with 102% y/y growth, HaloPSA (Halo) now finds itself in the Top 5 of global market share. MS Windows 10 EOL Oct 2025 900 million Windows 10 devices are still in use, needing refresh. --> Intel Corporation, AMD and Qualcomm are bringing NPU technology (A neural processing unit (NPU) is a specialized computer microprocessor designed to mimic the processing function of the human brain. ) to mainstream and entry-level chip offerings, which will expand the accessibility of AI-capable PCs. Demand is huge – especially over the next 3 years. --> NVIDIA is bringing out the latest Blackwell RTX 50 series GPUs, injecting fresh momentum into the gaming PC market. --> Lenovo, Dell Technologies, HP and ASUS all expanded their AI assistants and applications pre-installed on devices, making AI assistants on PCs a new norm. New Book Release: I'm proud to announce the release of my new book, The Anthology of Cybersecurity Experts! This collection brings together 15 of the nation's top minds in cybersecurity, sharing real-world solutions to combat today's most pressing threats. Whether you're an MSP, IT leader, or simply passionate about protecting your data, this book is packed with expert advice to help you stay secure and ahead of the curve. Available now on Amazon! https://a.co/d/f2NKASI Sponsor Memo: Since 2006, Kernan Consulting has been through over 30 transactions in mergers & acquisitions - and just this past year, we have been involved in six (6). If you are interested in either buying, selling, or valuation information, please reach out. There is alot of activity and you can be a part of it. For more information, reach out at kernanconsulting.com About the SMB Community Podcast: Weekly business advice for small MSP owners from Amy Babinchak and James Kernan of the Small Biz Thoughts community — MSP sales, MSP pricing and agreements, hiring and leading an MSP team, MSP operations, selling your MSP, and AI for small MSPs. Produced by MSP Radio. More for MSP owners at smallbizthoughts.com. SMB Community Podcast is supported by our partners: Oveka Supporting the IT services community through insights, analysis, and transparency.