Pax8: There’s ‘Huge Growth’ For MSPs In Small Business, Cloud

CJ Fairfield

In order for Pax8 to capitalize and be ready for the ever-growing IT market, the distributor must do three things for MSP partners: discover what is possible, design the outcome and deliver a “phenomenal customer experience,” according to a Pax8 executive.

Jared Pangretic, Pax8
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By 2027, the managed services market is expected to reach $400 billion, spurred by an ever-increasing shift to IT services and cloud, said Jared Pangretic, senior vice president of sales at Pax8.

“The opportunity is so rich,” Pangretic said. “You’ve got to be ready for it.”

Pangretic and Craig Donovan, corporate vice president of services at Denver-based Pax8, spoke to MSPs at CRN parent The Channel Company’s XChange NexGen 2022 conference in Orlando this week about how they can pivot their business to capitalize on the growing IT services market.

[Related: 6 Tips MSPs Should Know About Going Into 2023]

“It’s all there,” Donovan said. “We’re not talking little growth. We’re talking huge growth. It’s not going to come with a little knock on your door. It’s going to kick the door in, and it’s going to demand to be served. This is your opportunity. Are you ready for it?”

Pangretic said the internet is “a scary place” because “we’re making buying decisions before we even want to speak to anyone.”

He referenced “seller deficit disorder” and two aspects that attribute to it from the customer perspective: “You don’t understand my business, and you don’t listen.”

In order for Pax8 to capitalize on that projected market growth, he said the distributor must do three things with MSP partners: discover what is possible, design the outcome and deliver a “phenomenal customer experience.”

“When we talk about discover[ing what is possible], we’re talking about coming to us and discovering what your unique value drivers are to your customer, how we work in conjunction to help solve them and achieve the increasing selling opportunities,” he said.

Pax8 can look at an MSP’s technology stack, understand where the gaps are and what they’re providing today and get aligned to the business verticals that they serve.

In the design phase, Pax8 will help MSPs uncover and understand areas that need improvement, help with go-to-market strategies and enhance their solution stack and any policy gaps they might have.

“Now this is where it gets serious,” Donovan said. “This is where the rubber meets the road. This is where you as service providers really start to differentiate.”

The market is pivoting to small business, to service providers and to the cloud, Donovan added.

Pax8 has found that solution providers today are “trapped dealing with the tyranny of the urgent.” They’re putting out fires, dealing with operational inefficiency, lack of automation and engineering bottlenecks.

“Every day there’s another rock to push up the hill,” Donovan said. “There’s another challenge. Those challenges mean you spend more time chucking rocks around and less time actually building your business.”

He said Pax8 exists to help MSPs spend less time “pushing rocks” and more time growing their business.

Michael Goldstein, CEO of Fort Lauderdale, Fla.-based MSP LAN Infotech said the managed services market growth projection shared by Pax8 rings true, particularly with the push for managed security services.

“I could definitely see it because the offerings are getting more complicated,” he told CRN. “It’s not out there just for everybody to just click and everything’s secure. Security is what’s really driving that, at least for us.”

CJ Fairfield

CJ Fairfield is an associate editor at CRN covering solution providers, MSPs and distributors. Prior to joining CRN, she worked at daily newspapers, including The Press of Atlantic City in New Jersey and The Frederick News-Post in Maryland. She can be reached at

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