Analytics/Analysis

Long-time SMB Nation member Phelim Rowe has emerged as a leading industry analyst and has grown his intellectual event model over the past several years. It’s serious business ‘cause he’s a dapper British dude across the pond who takes his body or work seriously and you will be dazed and amazed with his efforts. What stands out to me is his geo-targeting his event conent so he has West Coast SMEs in the MSP world for this event. Join me!

Harry Brelsford | CEO | SMB Nation & O365nation |
Hey, hey, Nation, Nation, back with our friend across the pond, Phelim Rowe. Phelim, always a pleasure. Thank you. You have an event coming up that we want to drive some attention to, but before we do that,

Jason Bystrak, Senior Vice President, Cloud & Advanced Solutions+ Business Unit, is a long-time friend of the SMB MSP family and we caught a hot moment at the recent D&H Next+ event in Austin. It was a thought leadership conference that was smaller by design. About 200 partners and senior executives from the different line card vendors that facilitated real conversation compared to larger MSP events that have become noise and get drunks. The best part for me? NO EXPO HALL – thank God. Made the even feel like an Executive MBA Saturday session.

I gave my maintenance guy Jeremy my barely used HP ProLiant MicroServer (aka Home Server) from the old Windows server team days in Redmond. He asked me to keep my eyes open for CPU power.

Matt Linn, co-founder of Thread, discussed the company's rapid growth and recent activities since a capital raise four months ago. Thread is expanding its team and partner base, with a focus on R&D, particularly in voice AI and client intelligence. The company hosts weekly AI service unleashed community calls, attracting over 100 MSPs, which help shape product development through direct feedback. Linn emphasized the importance of value and investment in maintaining community engagement. Upcoming developments include agents to handle administrative tasks, allowing the team to focus on enhancing customer service experiences.

I’ll start this analysis the same way I’ll end it: GO HOME AND TAKE TWO PEOPLE WITH YOU! It’s that time of year - the start of the 7-month festival season in Austin.

Context

Before I get to my specific event analysis, let me start at the macro-level. Overall, the Austin March festivals and events are strong.

What if? What if automobile manufactures had both direct sales (e.g. Tesla) and a channel (e.g. CarMax)?  Such a strategy would cause tension to say the least. 

Yet this is already occurring in our beloved Small and Medium Business (SMB) - Managed Service Provider (MSP) ecosystem. I don’t know if the SMB MSP community sponsors all went to the same weekend seminar at a third tier airport hotel in a function room but I’m hearing the strategy articulated more than ever. 

Harry Brelsford, a veteran in the cannabis industry since 2014, discusses the Texas Administrative Code, Chapter 300, which regulates hemp products. He supports the new regulations, including licensing, testing standards, packaging, labeling, and enforcement procedures, which he believes will improve safety and transparency. Brelsford highlights the need for tracking and traceability from seed to sale, similar to systems in states like Washington. He criticizes the proposed $20,000 annual licensing fee per location as punitive, particularly for small operators, and encourages public input on the regulations.

Harry Brelsford and Jamar discussed their experiences at the M&A Lectures in Orlando, highlighting the importance of selecting which speeches to attend. They met Paul Daigle, who introduced his business advisory board specializing in MSPs. Daigle's company offers a business evaluation service for less than $500 and a tool that assesses an MSP's value to a strategic buyer in 15 seconds. They also provide a free 100 million dollar MSP scaling roadmap and collaborate with vendors to offer discounted evaluations. Daigle emphasized the importance of benchmarking and best practices for MSP growth.

Scott Scroggin, Director of Strategic Initiatives at ConnectWise, discussed the current M&A landscape for MSPs, highlighting high valuations and strong M&A activity despite some uncertainty due to AI and hyper-automation. He noted the scarcity of high-quality partners and the increasing role of private equity. Scroggin emphasized the importance of smaller MSPs leveraging AI for business consultancy to enhance their valuation. He introduced the Evolve Essentials program for MSPs with $7 million in revenue, providing an 18-month curriculum and benchmarking tools. The IT Nation Grow program focuses on business transition, aiming to help MSPs navigate transactions and secure positive outcomes.

George Sierchio from Cogent Growth Partners discussed the current market environment for MSPs, emphasizing that the 2025 market has returned to normal after the 2024 presidential election cycle. He highlighted the importance of staying updated with technology, particularly security and AI, for business viability. Sierchio advised MSP owners on the strategic timing of buying or selling, stressing the need for a good fit and opportunity. He recommended merging with similar-sized companies as a cost-effective strategy for growth, cautioning against bottom-feeder acquisitions. He also emphasized the importance of professional advice and proper preparation for M&A transactions.

Here are a couple high-level thoughts from last week's IT Nation hosted by ConnectWise in Orlando. I’ve said it once and I’ll say it again - it’s the Rose Bowl of events in our space and ya’ gotta go at least once. 

Here are some pillars!

To be or not to be an employee or entrepreneur? Admittedly these are goofy times out there in the macro economy! 

Employment

First - a fresh look at those seeking a J O B. Ya’ gotta do what ya gotta do. There was a fantastic LinkedIn news piece late last week called “The Great Freeze” and is that basis for my post up here. Basically the goofy employment market is like an unkind Goldilocks. Employers don’t want to hire but they don’t want to fire. Existing employees are “frozen” and hangin’ in there. This analysis is close to the mark. 

Second - does posting an “Open To Work” logo on your LinkedIn profile hurt or help.