OpenText Survey: AI Demand Soars Among MSPs, But Readiness Gap Widens

“One stat we shared was that only 46 percent of MSPs feel fully prepared to support clients with AI, and the reactions were fascinating. These are smart, established MSPs. And the first thing they said was, ‘Well, what does prepared really mean?’” says Michael DePalma, vice president of business development at OpenText Cybersecurity.

While AI is powering strong business momentum for MSPs, a new survey from OpenText Cybersecurity revealed a growing disconnect between market demand and AI readiness in the channel. The survey revealed that while AI is fueling business growth for more than nine in 10 MSPs, fewer than half feel fully prepared to help clients deploy AI tools or implement AI-driven security solutions.

“There’s no doubt AI is driving momentum,” Michael DePalma (pictured), vice president of business development at Ontario, Canada-based OpenText, told CRN in an exclusive interview. “But that 50 percent readiness number? To me, it signals opportunity, plain and simple.”

While 96 percent of MSPs expect AI to boost growth in the coming year, only 46 percent say they feel fully prepared to support clients with AI deployment, according to the survey. Yet that gap may be exactly where the channel can differentiate itself.

“A lot of SMBs still see AI as saving them five minutes a day in Outlook,” DePalma said. “That’s fine, but the MSP’s job is to zoom out and say, ‘How does this impact your whole business strategy?’ The ones who figure that out will win.”

DePalma pointed to Microsoft Copilot as a key entry point for many MSPs looking to bridge their internal AI use with external client offerings.

“We’re investing heavily in enablement, walking partners through not just how Copilot works, but how to sell it, support it and position it as a strategic differentiator.”

The findings also underscore a larger shift in MSP priorities: security, simplicity and integration now outweigh cost, with 8 percent of MSPs citing price as the top vendor selection factor. “It’s not about racing to the bottom on pricing anymore,” he said. “It’s about who can help MSPs grow and simplify at the same time.”

CRN spoke further with DePalma to discuss the survey results, how this impacts OpenText’s road map and how MSPs can close the gap between AI opportunity and operational readiness.

Was there anything specific you were hoping to validate or uncover when you launched this survey?

Any time you run a survey like this, you’re hoping the data aligns with your road map. We’ve made some big moves: releasing our bundled offerings, building out our EDR, really leaning into our AI strategy, so part of it was, ‘Hey, let’s validate that the market is where we think it is.’ We also wanted to get a pulse on where MSPs think they fit into the AI conversation. That’s been a big theme in our messaging: What’s the MSP’s role in this AI-fueled future? Thankfully, the numbers we saw in the survey were actually pretty aligned with what we’re seeing in the field. You don’t always get that. Sometimes you feel like you’ve got your finger on the pulse, then the data comes back and surprises you. But this time, it lined up really well.

One of the biggest takeaways is that AI is clearly driving growth, but only half of MSPs surveyed feel ready to support SMBs with AI tools. What does that readiness gap signal to you?

To me it signals opportunity, plain and simple. We just wrapped up our advisory board meeting, and I gave our board a sneak peek at the results. One stat we shared was that only 46 percent of MSPs feel fully prepared to support clients with AI, and the reactions were fascinating. These are smart, established MSPs. And the first thing they said was, ‘Well, what does prepared really mean?’

Some of them are already building AI strategies, not just for themselves, but for their clients. They’re sitting down and creating real, differentiated service plans. And that’s the key. AI makes life easier when it’s done right. But a lot of SMBs are still viewing it on a micro level, ‘This saves me five minutes a day in Outlook.’ That’s fine, but the MSP’s role is to zoom out and say, ‘How does this impact your entire business strategy?’

So I think the 50 percent readiness number actually reflects the fact that many MSPs are still figuring out what their AI value prop is. And that’s OK. It’s not just about reselling a product, it’s about defining a service-led approach to AI.

A lot of MSPs seem stuck using AI internally but not externally. Why is that, and how are you helping them shift that mindset?

You’re spot on. A lot of MSPs are using AI to run their businesses better, but they haven’t turned that around and monetized it yet. And again, that comes down to comfort, confidence and sometimes just capacity. That’s where Copilot becomes a really interesting entry point. We’ve built a team at OpenText, really on the Microsoft side of the house, that’s entirely focused on helping MSPs not just understand how Copilot works, but how to take it to market. We host regular in-person sessions, walk through enablement, even talk about how to position it in client conversations, whether it’s upselling or net-new outreach. Copilot is a very real, very immediate way for MSPs to bridge that internal-to-external gap. Our partners are asking for that support and we’re investing in the people and resources to provide it.

What were some of the survey results that surprised you or maybe challenged what you thought going in?

Honestly, I was a little surprised that cybersecurity still ranked as high as it did. AI is everywhere right now, you go to an event, every booth, every panel, it’s all AI. But when you get into the data, you see that threat prevention and 24x7 support are still the top two things SMBs want from their MSP.

It’s a good reminder that while the shiny new tech gets the headlines, the fundamentals still matter. Security isn’t going out of style, and that’s actually reassuring. It means the MSP core mission is still relevant.

Were there any survey findings that you’re using to adjust your road map?

Yes, one stat really jumped out: Price is no longer the top driver. Only 8 percent of respondents cited it as the most important factor in choosing a vendor. That’s huge. Instead, it’s about relationships, integrations and the strength of the solution. And that aligns with what we’re hearing in the field. But still, I’ll admit, I expected price to carry more weight. This confirmed that our focus on partner enablement, flexibility and integration is the right path. It’s not about racing to the bottom on pricing anymore. It’s about who can help MSPs grow and simplify at the same time.

How are you helping MSPs evolve their go-to-market strategies, especially now that digital channels like marketplaces and online search are becoming more important?

Look, referrals are still king. They always have been. But they’re not random, they’re the result of strategy, education and trust. We work with partners on things like QBRs, local events and even Chamber of Commerce engagement because those are the places where influence happens. At the same time, we know digital is rising. Marketplaces like Pax8 are getting traction. And younger buyers, Millennials and Gen Z, are coming in hot. They’re tech-native— they want speed, simplicity, self-service. But we still have a human account manager for deeper strategy work. It’s about meeting partners where they are and where their clients are.

The majority of the MSPs in the survey said they plan to expand services in the next year. How are you positioning OpenText to support that?

Service expansion is great, but it has to be sustainable. If you’re going to add new offerings, you have to make your current stack more efficient. That’s where we’re investing, especially around automation and integration. We’re doing things like building SOAR [security orchestration, automation and response] into our EDR, so MSPs can automate responses, free up tech time and focus on higher-value work like design, strategy and project services. We’re also revamping our partner program to offer more enablement resources, especially around AI. So we’re not just saying, ‘Here’s more stuff to sell.’ We’re saying, ‘Here’s how we help you do more with less.’

What’s your advice to MSPs who are excited about AI but don’t know where to start?

My biggest advice? Join a peer group. It doesn’t have to be a full accountability group, even a quarterly brainstorm can be game-changing. You’ll learn more from your peers than from any vendor. Some of the smartest conversations I’ve had come from MSPs just sharing what they’re trying, what’s working, what’s not. It’s real. It’s tactical. And it’s how this channel has always grown, by learning from each other. So if you’re feeling overwhelmed, don’t try to go it alone. Connect, listen, test ideas, iterate. That’s how you find your footing and your edge.