Skip to content

Macro Trends of the MSP Industry

To thrive in today, MSPs must embrace AI-driven efficiency, advanced cybersecurity, cloud mastery, strategic consolidation, and global talent to stay ahead of the curve.

Stride Live Webinar Recap with Bater Lanius

In a dynamic MSP market, staying ahead of macrotrends and futureproofing your business is more important than ever. In this Stride Live conversation, Casey Seaborn (Director of Business Development at Stride Services) sat down with Baxter Lanius (CEO & Founder, Alternative Payments) to unpack key industry trends, cash flow strategies, and the growing role of AI in shaping MSP growth.

The insights Baxter shared are essential for MSP owners looking to drive revenue, improve financial clarity, and stay competitive in an evolving landscape.

Here are a few key takeaways:

1. The MSP Market Is Ripe for Growth

MSPs are in a strong position, with increased demand from SMBs and enterprises alike. Baxter noted that IT spending continues to rise, and cybersecurity needs are only intensifying.

Many MSPs are seeing double-digit revenue growth, but with that comes the need for scalable processes and smarter financial management. Growth brings complexity, and without the right systems in place, MSPs can struggle to maintain profitability. Leaders should focus on building scalable operations, investing in automation, and tightening financial controls to keep pace with expansion.

2. Cash Flow Is King

Healthy cash flow is critical to sustainable growth. Baxter emphasized that many MSPs leave money on the table by not optimizing billing cycles, payment terms, and collections.

Many MSPs focus on revenue growth but neglect the health of their cash flow—and that can be a costly mistake. Speeding up collections, shortening payment terms, and improving invoice accuracy are all practical ways to strengthen cash flow.

Tip: Leveraging platforms like Alternative Payments can help MSPs accelerate cash flow and reduce the friction of traditional payment processes.

3. AI Is Moving From Trend to Essential Tool

AI is no longer hype—it’s rapidly becoming a practical tool for MSPs. From automated ticketing to predictive maintenance and customer insights, AI is helping MSPs operate more efficiently and deliver more value.

Baxter shared that early adopters are gaining a competitive edge and positioning themselves as innovation leaders in their markets. MSPs that embrace AI can enhance their service offerings, streamline internal operations, and improve client satisfaction. AI adoption should be intentional, with clear goals around efficiency gains, client experience, or data-driven insights.

4. Client Expectations Are Evolving

Today’s MSP clients want more than break/fix or basic managed services. They expect:

  • Proactive security guidance
  • Business continuity planning
  • Strategic technology roadmapping

MSPs that act as trusted advisors, not just service vendors, are winning larger contracts and deeper client relationships. Baxter emphasized that MSPs should regularly communicate with clients, help them plan for future technology needs, and offer strategic insights that go beyond the technical. The deeper the relationship, the greater the opportunity for long-term revenue growth.

5. Subscription and Usage-Based Billing Are on the Rise

Baxter highlighted that clients increasingly prefer flexible, subscription-based models. MSPs that adapt their billing to offer predictable, value-aligned pricing are seeing stronger customer retention and more consistent revenue.

The shift toward subscription and usage-based billing reflects a broader consumer trend toward flexibility and transparency. MSPs that adopt these models create more predictable revenue streams and deepen client loyalty. To implement these models effectively, MSPs must align their service packaging and internal billing processes.

6. Proactive Financial Management Is a Competitive Advantage

Many growing MSPs hit roadblocks because they don’t have the right financial clarity. Baxter stressed the importance of:

  • Accurate, timely reporting
  • Proactive tax planning
  • Understanding cash flow cycles

“When you truly know your numbers, you can confidently invest in growth,” he said. Baxter added that MSPs with strong financial practices can make better strategic decisions, weather market shifts, and position themselves for scalable success. Working with an experienced financial partner can help owners maintain this level of clarity as they grow.

7. The Opportunity Is Now

The MSP space is dynamic, and those who stay agile and proactive will come out ahead. As Baxter put it: “MSPs that focus on client value, financial clarity, and operational efficiency are going to be the market leaders over the next five years.”

The market is shifting fast, with new technologies, client demands, and competitive pressures emerging constantly. Forward-thinking MSPs must embrace continuous improvement, invest in operational efficiency, and build strong financial foundations to lead in this next phase of industry growth.

Final Thoughts

The conversation with Baxter Lanius reinforced that MSP success today hinges on more than great service delivery. It requires financial clarity, proactive leadership, and a willingness to embrace new trends like AI and modern billing models.

For MSP owners, now is the time to assess your cash flow, explore new tools, and evolve your offerings to match market expectations.


Want to watch the full conversation?

Watch the full webinar on LinkedIn.


About Alternative Payments:

Alternative Payments is the platform that accelerates cash flow and boosts revenue without traditional payment complexities. The company empowers businesses to get paid faster, improve customer experience, and reduce operational friction.

Learn more at www.alternativepayments.io.


About Stride Services

Stride Services is a comprehensive financial partner for MSPs, providing outsourced bookkeeping, tax, and advisory services designed to improve clarity, support confident decision-making, and eliminate financial fire drills. Whether you need monthly accounting support or proactive tax guidance, Stride helps you stay on track and plan for what’s next.

To learn more, visit www.stride.services.


Show Notes + Transcript: 

Casey Seaborn: Email
Casey Seaborn: LinkedIn
Baxter Lanius: LinkedIn

Ready to take control of your financial future?

Let Stride’s advisory team guide you with the insights and strategies needed for success.

Skip to content