ConnectWise’s Peter Kujawa: ‘We’re In A Golden Age Of Running An MSP’

‘Profitable MSPs know their target customer profile. They build their marketing engines around those customers and walk away from anyone who isn’t a fit. That leads to higher prices, more efficient service delivery, tighter tech stacks and more consistent staffing. The best-run MSPs understand their data, plan better, execute better and simply run their businesses better,’ says Peter Kujawa, executive vice president, general manager of service leadership and IT Nation at ConnectWise.

With roughly 650 companies and about 900 total members now participating in ConnectWise’s IT Nation Evolve peer group, one executive said the next five years will focus on growing the community, modernizing the peer group experience and bringing smaller MSPs into the fold through new offerings.

“Evolve’s secret sauce isn’t us, it’s the members holding each other accountable and helping each other succeed,” Peter Kujawa, executive vice president, general manager of service leadership and IT Nation at the vendor, told CRN. “Over the next five years, growth is the priority. Manny [Rivelo, ConnectWise CEO] has asked us to expand the community because Evolve members are more profitable, grow faster and simply run better businesses.”

And as the Tampa, Fla.-based company sunsets its IT Nation Secure event this year and plans to fold the best-of content into its IT Nation Connect conference, Kujawa promised even deeper security tracks and dedicated spaces for AI and automation, setting the stage for a new era of integrated partner enablement.

As the lowest-performing MSPs show reduced losses compared with previous years, clear differences are emerging between high-growth MSPs and those who remain stagnant. Kujawa said “shiny object syndrome” is a common factor holding back underperforming MSPs. But with ConnectWise’s ongoing investments in automation, robotic process automation (RPA) and agentic AI, as well as expanded education and enablement programs, the vendor promises to help partners adopt these technologies in a structured and profitable way.

“Profitable MSPs know their target customer profile,” he said. “They build their marketing engines around those customers and walk away from anyone who isn’t a fit. That leads to higher prices, more efficient service delivery, tighter tech stacks and more consistent staffing. The best-run MSPs understand their data, plan better, execute better and simply run their businesses better.”

In an interview with CRN, Kujawa dove into profitability trends emerging in the industry, the increasingly urgent race toward AI-driven services, the future of ConnectWise’s Evolve community and why benchmarking and operational rigor matter more than ever.

When you presented a recent survey on stage, you said the bottom quartile of MSPs are losing less money than ever. What’s driving that?

It does sound strange, but it’s correct. They were losing more money before, and now they’re losing less. The last six years have been incredibly strong for MSPs with great revenue growth, better pricing discipline and more operational maturity. The outsourced IT model is not only widely accepted now, it’s expected … especially around cybersecurity. We’re in a golden age of running an MSP.

Still, you said 8 percent of MSPs are losing money. What are they getting wrong, and how can they course correct?

At Service Leadership, we say there are infinite ways to poorly run an MSP but only a few ways to run one profitably. Most bottom-quartile MSPs underprice their services and sell to the wrong customers. Profitable MSPs know their target customer profile. They build their marketing engines around those customers and walk away from anyone who isn’t a fit. That leads to higher prices, more efficient service delivery, tighter tech stacks and more consistent staffing. The best-run MSPs understand their data, plan better, execute better and simply run their businesses better.

You’ve talked a lot about MSPs shifting toward ‘managed intelligence’ and AI-forward operations. What’s your message to MSPs who aren’t growing and are thinking about jumping into AI services?

Don’t jump yet. Fix what’s broken in your business first. MSPs love shiny toys: ‘What I’m doing today isn’t working, so this new thing over here must be the answer.’ But before you build a second story, fix the leaking basement. Become good at automation internally first. If you can’t use it effectively inside your business, you won’t be able to deliver it well for customers.

And for MSPs who are ready to make that jump?

Start today. The opportunity isn’t years away; it’s here now. One partner told me he only dove into AI after losing a huge customer opportunity to a competitor who had automation capabilities. This isn’t a flip-a-switch moment. It requires real investment, focus and ongoing measurement. But the gains are significant once you commit.

So how is ConnectWise investing in helping partners adopt AI and automation?

On the product side, we’re pouring resources into advanced automation, RPA and agentic AI. My focus is on community and knowledge. We’re embedding AI and automation education across Evolve meetings, community days, speakers, benchmarking and IT Nation Connect.

IT Nation Evolve is celebrating its 25th anniversary. Why is this milestone so important, and where do you want Evolve to go in the next five years?

Very few organizations make it to 25 years, less than 15 percent. This year is about honoring the community. Evolve’s secret sauce isn’t us; it’s the members holding each other accountable and helping each other succeed. Over the next five years, growth is the priority. Manny [Rivelo, ConnectWise CEO] has asked us to expand the community because Evolve members are more profitable, grow faster and simply run better businesses.

You’re launching Evolve Essentials and Service Leadership Benchmarking Essentials. Why build these programs now?

Because the highest percentage of unprofitable partners are under $1 million in revenue. Those smaller MSPs often hit a ceiling and don’t know how to get to the next stage. Evolve Essentials is a virtual, lower-cost, no-travel program tailored to that group. Benchmarking Essentials is a streamlined benchmarking tool built to introduce key concepts. Together, they help small MSPs get to $1.5 million in revenue, where success rates dramatically improve.

What’s the typical size of an MSP in Evolve?

The average is about $7 million in revenue with around 35 employees. But we have MSPs from $2 million all the way up to one that will do $1 billion this year. When partners join, we place them in groups with companies of similar size and maturity so they can learn from peers facing similar challenges.

On stage you said MSPs should invest 14.2 percent of gross margin into marketing. Why that specific number?

Because that’s what the best-in-class MSPs are doing. It’s not theory; it's the actual benchmark. And marketing is becoming the bigger portion of that spend. Best-in-class MSPs are investing more in marketing roles and lead generation, while bottom-quartile MSPs rely on hiring more sales reps and hoping it works. Today, sales is a process, not magic. MSPs need better leads, better targeting and disciplined measurement.

As you sunset IT Nation Secure and merge its best content into IT Nation Connect, what can partners expect in 2026?

More security content integrated into the event. You’ll see it in London in March, again in August and then here next November. Ultimately, it will likely resemble what we did with the Automation Hub: a dedicated security area where all related content lives. And when the event moves to the Gaylord [Palms in Orlando, Fla.,] in 2027, we’ll have room to expand even further. Expect a bigger, more cohesive security experience as part of the broader event.