Why ‘AI Is A Tidal Wave’ That’s Coming Quickly For MSPs: OpenText’s DePalma

‘The way that you’re making money will look different three to five years from now, [and] AI is going to be a big part of it,’ says OpenText executive Michael DePalma.

While past business model transitions for MSPs included a gradual adjustment period, that’s not likely to be the case with the shift now being touched off by rapidly evolving AI technologies, according to OpenText executive Michael DePalma.

Speaking to an audience of MSP executives Monday, DePalma, vice president of business development at OpenText, recalled how prior transitions were often a “slower wave” of change such as the shift from break-fix IT models to businesses focused on recurring revenue.

AI, by contrast, is more comparable to a “tidal wave” that is coming quickly for MSPs, he said during a keynote session at XChange August 2025, an event hosted by CRN parent The Channel Company being held this week in Denver.

“We don't have time to adjust and figure things out and try things. We have to figure it out right now,” DePalma said.

Among the key questions for every MSP to ask themselves is, “Where is the profitability going to come from?” he said. “Where does the MSP fit into this new AI world?”

While the answers may not be entirely clear at this stage, the most important thing is for MSPs—and the industry as a whole—to remain flexible and nimble as the AI space continues to take shape, according to DePalma.

“The way that you’re making money will look different three to five years from now, [and] AI is going to be a big part of it,” he said. “Any vendor that comes up here and tells you, 'I know what this industry is going to look like in three years,' is lying to you or just doesn't understand.”

“MSP” may even be an outdated term, DePalma said. The term “business solution provider”— credited to Joe Rojas, founder of MSP training firm Start Grow Manage—is likely a better description today, according to DePalma.

Ultimately, for all service providers facing continued waves of AI transformation, “we want to make sure that we’re nimble and be able to provide the services that are [needed] today, but also be able to make sure that we can adjust with the times,” said DePalma, a tech industry veteran who joined cloud and cybersecurity technologies vendor OpenText in March.

DePalma’s approach—focused on keeping up with the AI capabilities of today while staying nimble for future developments—is definitely the right mindset to have going forward, according to Wilhelm Rebmann, CTO of Altek Business Systems, a Telford, Pa.-based provider of managed IT and security services.

When it comes to AI, “I don’t know if anybody here knows where it’s all going to go,” Rebmann said, referring to the vendors and service providers attending XChange this week.

The important thing, then, is to continue working closely with customers to understand their challenges and see where AI might be able to be a fit for them, he said—in line with the notion of being a “business solution provider” as mentioned by DePalma.

Customers are at a range of different stages when it comes to adopting AI, with some continuing to steer clear of the new technologies, according to Cesar Avila, founder and CIO of AVLA, a longtime OpenText partner based in Fort Lauderdale, Fla.

At the same time, early adopters continue to expand their usage of AI and other customers are beginning to try out the new capabilities in GenAI applications and other emerging AI tools, Avila said.

“Our message to all of them is, ‘AI is something that is a skill,’” he said. “If you possess that skill, it will make you a better worker, a better employee. If you’re denying access for your employees to these skills, the only thing you’re doing is setting yourself back.”

During the XChange session Monday, DePalma urged service providers to do all they can to stay current with the changes in AI in order to adapt as fast as possible.

“This is the time. It’s happening really quickly,” he said. “So we have to figure out as a community, where do we fit in?”