Pax8: There’s ‘tremendous growth’ for MSPs in small business, cloud


CJ Fairfield

For Pax8 to capitalize on and be ready for the ever-growing IT market, the reseller must do three things for MSP partners: discover what’s possible, engineer the outcome, and deliver a “phenomenal customer experience,” according to an executive at Pax8.

Jared Pangretic, Pax8

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

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

Pangretic and Craig Donovan, corporate vice president of services at Denver-based Pax8, spoke with MSP at CRN parent The Channel Company’s XChange NexGen 2022 Conference in Orlando this week on how they can position their businesses to take advantage of the growing IT services market.

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

“It’s all there,” Donovan said. “We are not talking about small growth. We’re talking big growth. It won’t come with a light knock on your door. He will kick down the door and demand to be served. This is your opportunity. Are you ready for this?’

Pangretic said the Internet is a “scary place” because “we make purchasing decisions before we even want to talk to someone.”

He mentioned “salesperson deficit disorder” and two aspects attributed to him from the customer’s perspective: “You don’t understand my business and you don’t listen to me.”

For Pax8 to take advantage of this projected market growth, he said the distributor needs to do three things with MSP partners: discover what’s possible, engineer the outcome and deliver a “phenomenal customer experience.”

“When we talk about discovery[ing what is possible]we’re talking about coming to us and finding out what your unique value drivers are for your customer, how we work together to help them solve them and achieve incremental sales opportunities,” he said.

Pax8 can look at an MSP’s technology stack, understand where the gaps are and what they deliver today, and align with the business verticals they serve.

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

“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 yourself.”

The market is moving toward small businesses, toward service providers, and toward the cloud, Donovan added.

Pax8 found that solution providers today are “trapped, dealing with the tyranny of urgency.” They put out fires, deal with operational inefficiencies, lack of automation and engineering bottlenecks.

“Every day there’s a new rock to push up the hill,” Donovan said. “There is another challenge. These challenges mean you spend more time throwing stones 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 growth forecast for the managed services market shared by Pax8 rings true, especially with the push for managed security services.

“I could definitely see it because the proposals are getting more complex,” he said CRN. “It’s not there for everyone to just click and everything is safe. Security is what really drives this, at least for us.”

    Learn about CJ Fairfield

CJ Fairfield

CJ Fairfield is an associate editor at CRN covering solution providers, MSPs and resellers. Before 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 [email protected]

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